Guatemala Congress eliminates IUSI tax on homes, sparks municipal funding concerns

Guatemala IUSI tax housing exemption municipal financing Decreto 18‑2026

On 29 July 2026 the Congress of the Republic of Guatemala approved Decreto 18‑2026, repealing the Impuesto Único Sobre Inmuebles (IUSI) for residential properties. The reform introduces a uniform 9 per mil rate for commercial real estate while maintaining a progressive scale for higher‑valued assets. It also grants permanent or temporary exemptions for owners over 60 years old, those with 20 years of tax compliance and first‑time buyers who used credit.

The decree bans municipalities from conditioning public services—such as water, lighting, waste collection or street‑cleaning—on IUSI payment and redirects stamp‑tax revenues from second and subsequent property transfers directly to the municipality where the property is located. Implementation will be phased, with different timelines for each provision.

The National Association of Municipalities (ANAM) condemned the changes, warning that the loss of IUSI revenue threatens the finances of the 277 municipalities that currently depend on the tax, especially more than 50 localities that receive a large share of those funds. ANAM called for a technical dialogue to develop a sustainable financing model for local governments.

Entities: Asociación Nacional de Municipalidades (ANAM) · Congress of the Republic of Guatemala · Decreto 18‑2026 · Guatemala Congress · Impuesto Único Sobre Inmuebles (IUSI) · International Monetary Fund · Julio Héctor Estrada · Ministry of Finance (Guatemala) · Municipalities of Guatemala

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 6 SOURCES] Stamp‑tax revenue is redirected to municipalities and capital gains tax on individual property sales is abolished. (Decreto 18‑2026 redirects stamp‑tax proceeds to the municipality where the property is located and removes capital‑gains)
[● 6 SOURCES] The IUSI reforms will be implemented gradually with different timelines for each provision. (Decreto 18‑2026 provides for phased implementation of its provisions.)
[● 6 SOURCES] The reforms set a 9 per thousand tax rate for commercial properties. (Decreto 18‑2026 establishes a uniform 9 per mil rate for commercial real estate.)
[○ 1 SOURCE] The IMF recommended that Guatemala raise tax collection to above 12 % of GDP and improve coordination between the Ministry of Finance and the tax authority. (article 4)
[● 6 SOURCES] Municipalities may not condition public services on IUSI payment. (The decree explicitly prohibits municipalities from linking public‑service provision to IUSI payments.)
[● 6 SOURCES] Guatemala Congress approved reforms that eliminate the IUSI tax for primary residences. (The Guatemalan Congress passed Decreto 18‑2026 eliminating the tax on homes.)
[● 6 SOURCES] Exemptions also apply to homeowners over 60, owners with 20 years tax compliance, and first‑time buyers using credit. (Decreto 18‑2026 provides exemptions for seniors, long‑term compliant taxpayers and first‑time credit buyers.)
[○ 1 SOURCE] The IMF urged Guatemala to strengthen fiscal revenues and avoid measures that erode the tax base. (article 4)
[● 4 SOURCES] The National Association of Municipalities (ANAM) warns that the decree threatens the finances of 277 municipalities, especially more than 50 that depend heavily on IUSI revenue. (ANAM issued statements condemning the reforms, citing potential loss of funding for municipal services.)