About Guatemala's Tax System
Guatemala, located in North America, offers a territorial tax system. Under a territorial tax system, only income earned within the country's borders is subject to taxation, making it an attractive destination for international entrepreneurs and digital nomads.
With a corporate tax rate of 25% and a top personal income tax rate of 7%,Guatemala has a higher tax burden compared to some alternativesin our World Tax Index with an overall score of 49/100.
Tax Information
25%
Standard corporate tax rate is 25%.
7%
TerritorialTop marginal rate is 7%.
Economic & Investment Climate
Measures how often a country's tax regulations have changed over the last decade. Higher score means more predictable tax environment.
Indicates how independent the country's tax system is from global pressures. Higher score means more control over own tax policies.
A measure of the country's overall economic health and predictability, based on GDP growth, inflation, and sovereign credit ratings.
Reflects the safety and security of investments in the country, considering factors like legal protections for investors and political risk.
Based on perceived levels of public sector corruption. Higher score indicates a cleaner, more transparent business environment.
Rates the value of special programs offered, such as tax-free periods for new residents or designated economic zones. Higher score means more attractive incentives.
Citizenship Pathways
Guatemala offers citizenship through ancestry or bloodline connections.
Rule
Jus Sanguinis (Right of Blood)
Conditions
A person born outside Guatemala is a citizen by origin if at least one parent is a citizen of Guatemala.
Guatemala's policy on birthright citizenship.
Rule
Jus Soli (Right of Soil)
Conditions
Any person born in the territory of Guatemala is a citizen by origin. This also applies to children born on Guatemalan ships or aircraft.
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