On August 28, 2026, following its enactment the previous day by President Bernardo Arévalo, Decree 18-2026, which amends the Single Property Tax (IUSI) Law, was published in the Official Gazette. The decree had been approved by Congress on July 29.
The Decree contains a tax reform that modifies the tax regime for real estate and capital gains. The changes will take effect in phases beginning sixty days after its publication.
IUSI Exemption for Residential Properties:
The most significant reform is the elimination of the tax on residential properties:
The exemption applies exclusively to individuals who own a primary residence and will take effect 90 days after publication in the Official Gazette.
Income Tax (ISR) Exemption on Capital Gains from the Sale of Real Estate
The Decree also introduces a new exemption for capital gains from the sale of real estate, which applies to individuals who sell real estate located in Guatemala. It does not apply to:
- Companies and legal entities.
- Trusts and estates.
- Individuals registered in the Unified Tax Registry (RTU) engaged in real estate activities (purchase and sale, construction for sale, brokerage, etc.).
This provision will take effect on January 1, 2027.
Redistribution of Revenue to Municipalities:
The reform also reallocates revenue from the Stamp Tax generated by the sale of real estate and directs it to the municipality where the property is located. This provision will take effect on January 1, 2027.
Published on September 1, 2026.