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Guatemala IUSI property tax reform

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-01 06:48 UTC → 2026-08-07 12:53 UTC · added removed

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 also bars municipalities from conditioning basic services such as water, lighting, waste collection or street‑cleaning 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. President Bernardo Arévalo must sign the measure; it will become law 60 days after publication, with commercial‑property rates taking effect 90 days later. 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. The National Association of Municipalities highlighted that tax, with more than 50 municipalities depend heavily dependent on the levy. Mixco Mayor Neto Bran publicly asked the president 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. An earlier IMF recommendation urged Guatemala On 6 August the congressional leadership signed the decree and transmitted it to protect its fiscal base, President Arévalo, who has 15 days to sanction or veto it. The decision is expected to become a point noted by critics 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. reform could shift fiscal power to the central government while supporters argue it will lower housing costs for thousands of families.

Versions

  1. 2026-08-07 12:53 UTC Guatemala IUSI property tax reform
  2. 2026-08-01 06:48 UTC Guatemala IUSI property tax reform
  3. 2026-07-31 17:32 UTC Guatemala IUSI property tax reform

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