On February 10, 2026, the Congress of the Republic of Guatemala approved Decree 6-2026, which repeals the Law on Inheritance, Legacies and Donations Tax (Decree Number 431). As of its entry into force[1], the transfer of assets due to death will no longer be subject to the payment of this tax in Guatemala.

The new Decree will exempt the tax, fines, interest, and surcharges arising from non-compliance, regardless of the status of the administrative or judicial settlement or collection process that is pending at the time the law enters into force. Consequently, related contentious-administrative and economic coercive proceedings must be closed by applying the exemption. It is important to clarify that this will not apply to amounts that have already been paid before the Decree comes into force. In such cases, no refund will be made.

The Decree also introduces changes regarding gifts between living persons. These will be exempt from Value Added Tax (VAT) in the case of relatives up to the second degree of consanguinity (parents, children, grandparents, and siblings) and first degree of affinity (in-laws). Likewise, the exemption from Income Tax (ISR) for inheritances, legacies, and donations due to death is maintained, and the extrajudicial succession procedure is simplified by eliminating a requirement related to the valuation of shares and other securities.

The change eliminates the tax, but not the judicial or extrajudicial succession processes, registrations in the General Property Registry, the updating of company books in the case of shares, and compliance with the applicable notarial formalities. Nor does it exclude the possible application of other taxes related to the assets, such as municipal taxes or charges associated with the nature of the asset.

Beyond the legislative change, this Decree opens a new scenario for estate planning. The elimination of the tax reduces the fiscal cost of transferring assets to heirs and provides greater certainty about the economic impact of an inheritance. It also allows for lifetime gifts within the family unit without the burden of VAT, making it easier to organize assets in advance, support family members, or reorganize business structures.

This new context invites a review of how assets are organized and whether there are any pending successions that could be regularized under a simpler and less burdensome environment. Those who own real estate, shares in companies, or other assets may find this an opportune time to update wills, define clear rules of distribution, and reduce possible future contingencies.

In short, the Decree eliminates a significant tax burden, but it does not replace the need for proper estate planning. Advance organization remains the key to providing stability and peace of mind for families.

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