Fast Facts

• Currency: Guatemalan Quetzal (GTQ), though USD is accepted for larger real estate deals.
• Property Taxes: 0.9% of cadastral value, generally low by regional standards.
• Closing Costs: Approximately 3–6%, including legal, notary, and registration fees.
• Residency Link: Property investment can support residency under standard residency categories.
• Foreign Ownership: Permitted nationwide, except within 3 km of international borders or protected ecological zones.

Legal Framework

Guatemala offers secure private property ownership under a civil law system influenced by Spanish law. Foreigners enjoy the same rights as citizens to buy, sell, and lease titled property, with minor restrictions in border and protected areas. All real estate transactions must be executed through a public deed before a registered Guatemalan notary and filed with the General Property Registry (Registro General de la Propiedad).

Ownership Options

Property can be purchased in your personal name or through a Guatemalan corporation (Sociedad Anónima). Corporations are popular for multi-property investors or those planning to rent to others, offering limited liability and simplified inheritance processes. Foreign buyers should always confirm that the property is titled and not subject to ejido (communal land) status, which cannot be privately owned.

Residents vs. Non-Residents

Category	Residents	Non-Residents
Ownership	May buy in personal or corporate name.	Full rights, except in restricted zones.
Financing	Eligible for local bank loans with income proof.	Typically cash-only purchases or offshore financing.
Taxes	Pays local property and income tax on rental earnings.	Taxed only on Guatemalan-sourced income.
Residency Benefit	Easier access to utilities, financing, and business registration.	Can later apply for residency through property investment or income.

Step-by-Step Legal Process

1️⃣ Hire a bilingual attorney or notary experienced in foreign property transactions.
2️⃣ Conduct a full title search through the Registro General de la Propiedad.
3️⃣ Verify that the land is not ejido (communal) or under agricultural or indigenous claims.
4️⃣ Sign a preliminary Promise to Purchase (Contrato de Promesa) and make a deposit (usually 10%).
5️⃣ Execute the final Public Deed before a Guatemalan notary.
6️⃣ Pay applicable transfer taxes (~3%) and register the property with the Property Registry.
7️⃣ Update utilities and municipal tax accounts in the buyer’s name.

Practical Insights & Tips

• Always confirm that the property has a clean, registered title (Título de Propiedad Inscrito).
• Avoid ejido or communal land purchases, as these are not privately transferable.
• Use escrow for deposits when possible.
• Hire a surveyor (agrimensor) to verify property boundaries.
• Municipal property taxes (IUSI) are low but must be kept current.
• Real estate agents are unregulated — work with reputable professionals vetted by your attorney.

Why Invest in Guatemala

Guatemala’s real estate market remains one of Central America’s best-kept secrets — combining low property taxes, affordable costs, and strong tourism appeal. Antigua, with its colonial architecture and UNESCO status, draws international buyers seeking heritage investments, while Lake Atitlán has become a top choice for digital nomads and eco-conscious expats. Meanwhile, Guatemala City’s expanding middle class and infrastructure growth offer urban investors steady returns. Overall, the country’s stable currency, proximity to North America, and low cost of living make it an emerging hotspot for early investors.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Buyers should consult a licensed Guatemalan attorney to confirm property ownership, title status, and regulatory compliance before any purchase. TropiCasas assumes no liability for actions taken based on this publication.