Guatemala Congress approves IUSI tax reform eliminating residential property levy

On 29 July, the Guatemalan Congress approved Decree 18‑2026, reforming the Impuesto Único Sobre Inmuebles (IUSI). The decree eliminates the IUSI levy for residential and mixed‑use housing, setting a zero‑per‑mille rate, while commercial properties will be taxed on a tiered scale up to nine per mille based on assessed value.

The measure also bars municipalities from conditioning basic services on IUSI payment, redirects stamp‑tax revenues to local governments, and amends capital‑gains tax provisions effective 1 January 2027. President Bernardo Arévalo must sign the decree, after which the changes will become law 60 days after publication, with the commercial‑property rates taking effect 90 days later.