# Guatemala IUSI property tax reform

> Live situation record from CLSTR: https://clstr.news/situations/guatemala-iusi-property-tax-reform
> Updated: 2026-08-06T01:57:49.000Z. Sources: 18. Developments: 3.

On 29 July 2026 the Guatemalan Congress approved Decree 18‑2026, repealing the Impuesto Único Sobre Inmuebles (IUSI) levy for residential and mixed‑use housing and setting a zero‑per‑mille rate. Commercial real‑estate will be taxed on a tiered scale up to nine per mille based on assessed value. The decree bars municipalities from conditioning basic services on IUSI payment, redirects stamp‑tax revenues from second‑hand property transfers to the municipality where the property is located, and amends capital‑gains tax provisions effective 1 January 2027.

Municipal officials warned that the loss of IUSI revenue could threaten the finances of many of the 277 municipalities that currently rely on the tax, with more than 50 municipalities heavily dependent on the levy. Mixco Mayor Neto Bran asked President Bernardo Arévalo to veto the reforms, citing risks to projects such as the Aerometro airport link, street paving, drainage systems and municipal salaries. The decree includes exemptions for homeowners over 60, owners with 20 years of tax compliance and first‑time buyers using credit.

On 6 August the congressional leadership signed the decree and transmitted it to President Arévalo, who has 15 days to sanction or veto it. The decision is expected to become a key issue in the run‑up to the 2027 general elections. If vetoed, Congress could override the veto with a qualified majority of 107 votes. Analysts note the reform could shift fiscal power to the central government while supporters argue it will lower housing costs for thousands of families.

## Claims

- Guatemala Congress approved reforms that eliminate the IUSI tax for primary residences. (corroborated by 6 sources)
- The reforms set a 9 per thousand tax rate for commercial properties. (corroborated by 6 sources)
- Exemptions also apply to homeowners over 60, owners with 20 years tax compliance, and first‑time buyers using credit. (corroborated by 6 sources)
- Municipalities may not condition public services on IUSI payment. (corroborated by 6 sources)
- Stamp‑tax revenue is redirected to municipalities and capital gains tax on individual property sales is abolished. (corroborated by 6 sources)
- The IUSI reforms will be implemented gradually with different timelines for each provision. (corroborated by 6 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. (corroborated by 4 sources)
- The IMF urged Guatemala to strengthen fiscal revenues and avoid measures that erode the tax base. (single 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. (single source)

## Timeline

### 2026-08-06: Guatemala President Bernardo Arévalo faces decision on IUSI tax reform

Guatemala’s Congress passed Decree 18‑2026 reforming the IUSI tax, exempting homes and taxing commercial property. President Arévalo has 15 days to sign or veto, a move with major fiscal and political fallout,

6 sources. https://clstr.news/cluster/venezuela-enacts-new-rental-law-to-safeguard-landlords-and-tenants

### 2026-07-31: Guatemala Congress approves IUSI tax reform eliminating residential property levy

Guatemala's Congress passed Decree 18‑2026, removing the IUSI tax on residential properties and introducing tiered rates for commercial real estate, with the changes to take effect within 60‑90 days after its ‑

2 sources. https://clstr.news/cluster/guatemala-congress-approves-iusi-tax-reform-eliminating-residential-property-levy

### 2026-07-29: Guatemala Congress eliminates IUSI tax on homes, municipal finances at risk

Guatemala’s Congress scrapped the IUSI tax on primary homes, prompting ANAM to warn of municipal budget shortfalls and leading Mixco’s mayor to request a presidential veto.

15 sources. https://clstr.news/cluster/guatemala-congress-repeals-iusi-tax-on-primary-residences

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Cite as: Guatemala IUSI property tax reform. CLSTR, https://clstr.news/situations/guatemala-iusi-property-tax-reform