FAQs
Everything you need to know about investing in Guatemala
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1. Investing in Guatemala
Guatemala is the largest economy in Central America and one of the region’s most stable, with a young workforce, a diversified energy matrix and direct access to both the Pacific and Caribbean coasts. The country offers preferential access to major markets through an extensive network of trade agreements, competitive operating costs, and special regimes that grant qualifying export-oriented projects a ten-year corporate income tax exemption. Invest Guatemala works with companies evaluating the country, providing sector data, cost information and introductions to the relevant institutions.
Sources:
– Invest Guatemala, “Reasons to Invest in Guatemala“
– Invest Guatemala, “Por qué Guatemala“
– Ministry of Economy (MINECO), Trade Agreements in Force
Guatemala’s main advantages are its location, its workforce and its trade access. Transit time to the United States is approximately four to six days by sea and about three hours by air. The country has the largest working-age population in Central America, with an average workforce age of 28. Installed electricity generation capacity is approximately 3,400 MW, with renewable sources accounting for a majority of generation. Sixteen trade agreements provide preferential access to more than 45 countries. Qualifying export-oriented projects may access special regimes offering a ten-year income tax exemption. Macroeconomic management has been consistent, with public debt at roughly 27% of GDP and a historically stable exchange rate.
Sources:
– Invest Guatemala, “Reasons to Invest in Guatemala“
– Bank of Guatemala (central bank)
Yes. Guatemala’s Foreign Investment Law (Decree 9-98) establishes that foreign investors receive treatment no less favorable than that granted to national investors. There is no general requirement for local participation in the capital of a Guatemalan company, and a foreign investor may hold 100% of the shares of a Guatemalan entity. A limited number of regulated activities are subject to sector-specific licensing requirements that apply to all participants. Requirements may vary depending on the nature and scope of the investment; companies should obtain appropriate legal advice for their specific project.
Sources:
– Congress of the Republic of Guatemala, Foreign Investment Law (Decree 9-98)
– Organization of American States, Foreign Trade Information System (SICE), Guatemala Foreign Investment Law
Guatemala does not maintain general restrictions on foreign investment, and no prior authorization or investment screening is required to invest. The Foreign Investment Law (Decree 9-98) guarantees national treatment, meaning foreign investors are treated no less favorably than national investors. The restrictions that do exist are limited and sector-specific: regulated activities such as banking, insurance, energy and telecommunications require licensing from the competent authority, and those requirements apply equally to national and foreign participants.
Sources:
– Foreign Investment Law (Decree 9-98)
– Congress of the Republic of Guatemala
No. Guatemala does not impose a minimum investment amount as a condition to invest or to establish a company, and the Foreign Investment Law does not set a threshold. Minimum capital applies at the corporate level rather than the investment level, and it is nominal. Thresholds do apply in two specific contexts: certain special regimes involve area or activity requirements as conditions for obtaining a particular benefit, and investor residency for a foreign individual involves a minimum investment. Neither is a condition for investing in the country.
Sources:
– Foreign Investment Law (Decree 9-98)
– Invest Guatemala, “Investment Incentives”
Guatemala’s Constitution and the Foreign Investment Law (Decree 9-98) recognize the right to private property and guarantee national treatment for foreign investors. The Foreign Exchange Free Negotiation Law (Decree 94-2000) guarantees the free holding, transfer and remittance of foreign currency. In addition, the Ministry of Economy reports nineteen bilateral investment promotion and protection agreements in force, together with investment chapters in seven free trade agreements, including CAFTA-DR.
Sources:
– Foreign Investment Law (Decree 9-98)
– Foreign Exchange Free Negotiation Law (Decree 94-2000)
– Ministry of Economy (MINECO), Investment Agreements in Force
Guatemala’s Constitution and the Foreign Investment Law (Decree 9-98) recognize the right to private property and guarantee national treatment for foreign investors. The Foreign Exchange Free Negotiation Law (Decree 94-2000) guarantees the free holding, transfer and remittance of foreign currency. In addition, the Ministry of Economy reports nineteen bilateral investment promotion and protection agreements in force, together with investment chapters in seven free trade agreements, including CAFTA-DR.
Sources:
– Foreign Investment Law (Decree 9-98)
– Foreign Exchange Free Negotiation Law (Decree 94-2000)
– Ministry of Economy (MINECO), Investment Agreements in Force
2. Starting a Business
Most foreign companies establish a Guatemalan subsidiary, usually a Sociedad Anónima (S.A.), the Guatemalan equivalent of a corporation, in which ownership is represented by freely transferable shares and shareholder liability is limited to the capital contributed. The process involves selecting the legal structure, verifying the availability of the company name with the Commercial Registry (Registro Mercantil), executing the articles of incorporation as a public deed before a Guatemalan notary, registering the company with the Commercial Registry, obtaining the Tax Identification Number (NIT) from the Superintendency of Tax Administration (SAT), and registering as an employer with the Guatemalan Social Security Institute (IGSS) and the Ministry of Labor (MINTRAB). Sector-specific licenses and municipal permits may also apply. A foreign company may alternatively register a branch.
Sources:
– Invest Guatemala, “How to Start a Business in Guatemala”
– Commercial Code (Decree 2-70)
– Commercial Registry
The Commercial Code (Decree 2-70) recognizes several types of commercial company, including the corporation (Sociedad Anónima, S.A.), the limited liability company (Sociedad de Responsabilidad Limitada), the general partnership (Sociedad Colectiva), the limited partnership (Sociedad en Comandita Simple) and the partnership limited by shares (Sociedad en Comandita por Acciones). The Sociedad Anónima is by far the most common vehicle for foreign investment, because it allows freely transferable shares and limits shareholder liability to the amount contributed. Foreign companies may also operate through a registered branch of the parent company rather than a separate Guatemalan entity.
Sources:
– Commercial Code (Decree 2-70)
– Commercial Registry
No. There is no general requirement to have a Guatemalan partner or shareholder. A Guatemalan company may be wholly owned by foreign shareholders, and no nationality requirements apply to shareholders other than in specific regulated industries such as banking and energy. A Sociedad Anónima requires a minimum of two shareholders, but both may be foreign, and one of them may be a foreign parent company.
Sources:
– Foreign Investment Law (Decree 9-98)
– Commercial Code (Decree 2-70)
– Invest Guatemala, “How to Start a Business in Guatemala”
A Guatemalan company must appoint an administrator or legal representative, who may be designated in the deed of incorporation or subsequently by the shareholders. The appointment (nombramiento) is formalized through a notarial instrument and filed with the Commercial Registry. No general nationality requirement applies to the legal representative, although having a representative available locally is practical for banking, tax and labor procedures, and companies frequently appoint one for that reason. Requirements may vary depending on the structure chosen; companies should obtain appropriate legal advice for their specific project.
Sources:
– Commercial Code (Decree 2-70)
– Commercial Registry
Guatemalan law establishes a short statutory timeframe, and provides for registration of a company with the Commercial Registry within three business days. The registry operates an online platform for company formation. In practice, investors should plan for additional time before that step: for foreign shareholders, obtaining, apostilling and translating corporate documents from the home jurisdiction is usually the longest part of the process and should be started early.
Sources:
– Reforms to the Commercial Code, Decree 18-2017 (amending Decree 2-70), in force 29 January 2018
– Congress of the Republic of Guatemala
– Commercial Registry, Registration of Commercial Companies
The minimum capital for a Sociedad Anónima is GTQ 200 (approximately USD 26). Shareholders must pay in at least 25% of the par value of the shares they subscribe. Registration fees are calculated on the authorized capital, so setting a higher authorized capital increases the cost of incorporation; investors should set it with both regulatory and cost considerations in mind. Regulated sectors such as banking and insurance are subject to substantially higher minimum capital requirements established by their own legislation.
Sources:
– Reforms to the Commercial Code, Decree 18-2017 (amending Decree 2-70)
– Commercial Code (Decree 2-70)
– Invest Guatemala, “How to Start a Business in Guatemala”
The Tax Identification Number (Número de Identificación Tributaria, NIT) is issued by the Superintendency of Tax Administration (SAT). For a company, the NIT is obtained once the entity has been registered with the Commercial Registry, as part of taxpayer registration, which also involves electing the applicable corporate income tax regime and enrolling in the mandatory electronic invoicing system (Factura Electrónica en Línea, FEL). Foreign individuals acting on behalf of the company, such as directors and legal representatives, also require their own NIT. SAT provides online registration services.
Sources:
– Superintendency of Tax Administration (SAT)
– Income Tax Law (Decree 10-2012)
Yes. A foreign company may register a branch (sucursal) in Guatemala rather than incorporating a subsidiary. A branch is registered with the Commercial Registry and requires legalized corporate documentation from the parent company and the appointment of a legal representative in Guatemala. Because the parent company remains directly liable for the branch’s obligations, most foreign investors establishing a permanent operation prefer to incorporate a Guatemalan subsidiary. The choice has tax, liability and registration-cost consequences and should be reviewed with legal and tax advisors before it is made.
Sources:
– Commercial Code (Decree 2-70)
– Commercial Registry
3. Taxes
Guatemala’s Income Tax Law (Decree 10-2012) provides two regimes for business income, so the applicable rate depends on which regime the company chooses. Under the Profit-Based Regime (Régimen Sobre las Utilidades de Actividades Lucrativas), corporate income tax is levied at 25% of net taxable income, with quarterly advance payments and an annual settlement. Under the Optional Simplified Regime, tax is levied on gross revenue rather than on profit, at lower rates. Companies qualifying under a special regime such as Decree 29-89 may be exempt from corporate income tax on the authorized activity for ten years.
Sources:
– Income Tax Law (Decree 10-2012)
– Superintendency of Tax Administration (SAT)
Yes. Guatemala’s Value Added Tax (Impuesto al Valor Agregado, IVA) is governed by Decree 27-92 and applies at a standard rate of 12% to the sale of goods and the provision of taxable services in Guatemala. VAT operates on a debit-and-credit basis, so VAT charged on taxable sales is offset against VAT paid on qualifying purchases. Exports of goods and qualifying exports of services are exempt, which is material for export-oriented operations. Guatemala does not apply a separate general sales tax. All invoicing is issued through the mandatory electronic invoicing system (FEL).
Sources:
– Value Added Tax Law (Decree 27-92)
– Superintendency of Tax Administration (SAT)
Beyond corporate income tax and VAT, companies should consider the Solidarity Tax (Impuesto de Solidaridad, ISO), levied quarterly at 1% on the higher of one quarter of gross income or one quarter of net assets and creditable against income tax; capital gains tax at 10%; the Documentary Stamp Tax at a general rate of 3% on certain documents not subject to VAT; customs duties on imports, determined by tariff classification; and the Single Property Tax (Impuesto Único Sobre Inmuebles, IUSI) on owned real property. Municipal licensing and administrative charges may also apply depending on the municipality and the activity.
Sources:
– Solidarity Tax Law (Decree 73-2008)
– Income Tax Law (Decree 10-2012)
– Single Property Tax Law (Decree 15-98)
– Documentary Stamp Tax Law
Guatemala applies withholding tax on certain Guatemalan-source payments to non-residents that do not have a permanent establishment in the country. Dividends are subject to a 5% withholding. Other categories – including interest, royalties, technical and professional services, and international transport and telecommunications – are subject to their own rates under the Income Tax Law (Decree 10-2012). Because the rate depends on how the payment is characterized, companies planning cross-border payments to a parent or affiliate should confirm the applicable rate with SAT or a tax advisor before structuring those flows.
Sources:
– Income Tax Law (Decree 10-2012)
– Superintendency of Tax Administration (SAT)
Under the Profit-Based Corporate Income Tax Regime, net operating losses may not be carried forward to offset taxable profits in subsequent years, and Guatemalan tax law does not allow loss carrybacks. This is material for projects with an extended start-up or ramp-up period, because losses incurred during that phase cannot be used to shelter later profits. It is one of the reasons companies with a long ramp-up frequently evaluate the special regimes, under which qualifying income may be exempt from corporate income tax for ten years.
Sources:
– Income Tax Law (Decree 10-2012)
Companies under the Profit-Based Regime make quarterly payments and file an annual corporate income tax return within the first three months of the following year. VAT is generally reported monthly. Payroll withholding, social security reporting and the annual employee tax reconciliation are further periodic obligations. All invoicing must be issued through the Online Electronic Invoice system (Factura Electrónica en Línea, FEL), which is mandatory for all taxpayers and is the only valid way to document a sale or a deductible purchase.
Sources:
– Income Tax Law (Decree 10-2012)
– Superintendency of Tax Administration (SAT), Online Electronic Invoicing (FEL)
4. Incentives and Special Regimes
Yes. Guatemala offers investment incentives mainly through three legal regimes: the Export and Maquila Activity Promotion and Development Law (Decree 29-89), the Free Trade Zones Law (Decree 65-89), and Public Special Economic Development Zones (ZDEEP). Each provides a ten-year exemption from corporate income tax on qualifying income, together with customs and VAT benefits on qualifying imports. Incentives are not automatic: each requires a formal application to, and a resolution from, the competent authority, and eligibility depends on the activity and, for the zone regimes, on the location of the operation. Invest Guatemala can help investors assess which regimes their project may qualify for.
Sources:
– Invest Guatemala, “Investment Incentives”
– Ministry of Economy (MINECO), Directorate of Services to Trade and Investment (DISERCOMI)
Decree 29-89 is the regime designed for export-oriented activity, covering apparel and textile manufacturing and technology-enabled services. Qualifying companies may receive a 100% exemption from corporate income tax on income derived from the authorized activity for ten years, full exemption from customs duties and import taxes, including VAT, on machinery and equipment required for that activity, and temporary suspension of duties on inputs. For services, the law covers information and communication technology services delivered through call or contact centers, software development and digital content development, provided the services are rendered to persons not resident in Guatemala. Applications are filed with the Ministry of Economy.
Sources:
– Ministry of Economy (MINECO), Export and Maquila Activity Promotion and Development Law, Decree 29-89 (as amended by Decree 19-2016), arts. 6, 8 bis, 12 bis
· Implementing Regulations, Government Agreement 533-89
– Invest Guatemala, “Investment Incentives”
Yes. Free Trade Zones (Zonas Francas) operate under Decree 65-89 as delimited areas subject to a special customs regime, with industrial, service and commercial user categories. Authorized users may receive a ten-year exemption from corporate income tax on income generated by the activity carried out within the zone, exemption from import duties on machinery, equipment and production inputs, VAT exemption on transfers between zone users, and stamp tax exemption on qualifying transfers. Service users must carry out an activity linked to international trade. Certain products are excluded from the regime, and the operation must be physically located inside an authorized zone.
Sources:
– Ministry of Economy (MINECO), Free Trade Zones Law, Decree 65-89, arts. 4, 21, 22, 36a, 41
– Invest Guatemala, “Investment Incentives”
– Invest Guatemala, Directory of Industrial Parks and Free Zones
Public Special Economic Development Zones (Zonas de Desarrollo Económico Especial Públicas, ZDEEP) are extra-customs areas within Guatemalan territory authorized by ZOLIC under Decree 30-2008, which amended ZOLIC’s organic law. They are destined for industrial, commercial and service activities under a special customs regime. Authorized users may receive a ten-year exemption from corporate income tax; an exemption from income tax on the distribution of profits and dividends, so qualifying earnings may be distributed to shareholders without the withholding that would otherwise apply; VAT exemption on qualifying foreign trade operations; and exemption from import duties and charges on inputs, machinery and equipment. A ZDEEP may be established on ZOLIC land, on private property or on state or municipal property.
Sources:
– Organic Law of the “Santo Tomás de Castilla” Free Industry and Trade Zone (ZOLIC), Decree 22-73, as amended by Decree 30-2008
– ZOLIC Free Zone Authority, Special Economic Development Zones
– Invest Guatemala, “Investment Incentives”
Applications for Decree 29-89 and for free trade zone user status are filed with the Ministry of Economy through the Directorate of Services to Trade and Investment (DISERCOMI), which manages qualification online. ZDEEP authorizations are resolved by the ZOLIC Board of Directors. In each case the company must already be legally incorporated in Guatemala, must demonstrate that its activity falls within the categories the law recognizes, and must obtain a formal resolution before the benefits apply. Qualification is granted to a specific entity for a specific authorized activity.
Sources:
– Ministry of Economy (MINECO), Directorate of Services to Trade and Investment (DISERCOMI)
– Directorate of Services to Trade and Investment (DISERCOMI), online platform
– ZOLIC Free Zone Authority
Yes, through two mechanisms. Employers contribute 1% of payroll to the Technical Institute for Training and Productivity (INTECAP). Under Article 30 of INTECAP’s Organic Law (Decree 17-72), a company that operates its own vocational training program under a formal agreement with INTECAP may obtain a quarterly reimbursement of up to 80% of that contribution, subject to INTECAP approval and supervision of the program. Separately, the Ministry of Labor’s Beca Mi Primer Empleo program subsidizes a share of the employment cost of first-time workers aged 18 to 24 during a four-month apprenticeship. Both require coordination with the respective institution.
Sources:
– Technical Institute for Training and Productivity (INTECAP), Organic Law (Decree 17-72), arts. 28, 29, 30
– Ministry of Labor and Social Welfare (MINTRAB), “Beca Mi Primer Empleo” first-job apprenticeship program
– Government of Guatemala, “Beca Mi Primer Empleo” first-job apprenticeship program
5. Workforce and Labor
Minimum wages are set annually by Government Agreement and vary by economic activity and by geographic circumscription. For 2026, Government Agreement 256-2025 establishes the following monthly minimums: In Economic Circumscription 1, which covers the Department of Guatemala: GTQ 4,252.28 (approximately USD 552) for non-agricultural activities, GTQ 4,041.20 (approximately USD 525) for agricultural activities and GTQ 3,659.73 (approximately USD 475) for export and maquila activities. In Economic Circumscription 2, which covers all other departments: GTQ 4,066.90 (approximately USD 528), GTQ 3,875.89 (approximately USD 503) and GTQ 3,471.10 (approximately USD 451) respectively. Each figure includes the mandatory GTQ 250 (approximately USD 32) monthly incentive bonus. Amounts are converted at an indicative rate of GTQ 7.7 per US dollar and are revised annually.
Sources:
– Ministry of Labor and Social Welfare (MINTRAB), Government Agreement 256-2025 (published 22 December 2025), effective 1 January 2026
– EY Central America, “Guatemala: 2026 minimum wage”
Base salary is not the full cost of employment. Employers pay statutory contributions of 12.67% of salary: 10.67% to the Guatemalan Social Security Institute (IGSS), 1% to INTECAP and 1% to IRTRA. They also pay the mandatory GTQ 250 (approximately USD 32) monthly incentive bonus and accrue mandatory annual benefits: the Christmas bonus or aguinaldo (8.33%), the mid-year bonus or Bono 14 (8.33%) and paid vacation (4.17%). These components represent 33.50% above base salary. Employers that also provision for statutory severance, calculated at 9.71%, reach a total loaded cost of 43.21%. Employees separately contribute 4.83% to IGSS, withheld through payroll.
Sources:
– Guatemalan Social Security Institute (IGSS)
– Technical Institute for Training and Productivity (INTECAP), Organic Law (Decree 17-72), art. 28
– Workers’ Recreation Institute (IRTRA), Decree 1528
– Labor Code (Decree 1441); Christmas Bonus Law (Decree 76-78); Mid-Year Bonus Law (Decree 42-92); Incentive Bonus Law (Decree 37-2001)
The Labor Code (Decree 1441) regulates working time by shift. The ordinary daytime shift is limited to 8 hours per day and 44 hours per week; the night shift to 6 hours per day and 36 hours per week; and the mixed shift to 7 hours per day and 42 hours per week. Daytime work is performed between 6:00 a.m. and 6:00 p.m. and nighttime work between 6:00 p.m. and 6:00 a.m. Where the workday is continuous, employees are entitled to a minimum 30-minute break counted as working time. Overtime is permitted and must be paid at no less than 150% of the ordinary hourly rate. Shift-based and continuous operations are lawful.
Sources:
– Labor Code (Decree 1441), arts. 116, 119, 121
– Political Constitution of the Republic of Guatemala, art. 102
– Ministry of Labor and Social Welfare (MINTRAB)
Guatemalan employees are entitled to the incentive bonus (Bonificación Incentivo) of GTQ 250 (approximately USD 32) per month, paid in addition to ordinary salary; the Christmas bonus (aguinaldo), equivalent to one month’s salary; the mid-year bonus (Bono 14), equivalent to one month’s salary; paid annual vacation of 15 working days after one year of continuous service; and paid public holidays. The Christmas bonus and the mid-year bonus are each paid on their own annual cycle, so an employee with less than a full year of service in the relevant cycle receives the proportional amount rather than a full month. Employees are also covered by social security through IGSS, and severance is due on dismissal without just cause.
Sources:
– Incentive Bonus Law (Decree 37-2001)
– Christmas Bonus Law, aguinaldo (Decree 76-78)
– Mid-Year Bonus Law, Bono 14 (Decree 42-92)
– Labor Code (Decree 1441), art. 130
The Guatemalan Social Security Institute (Instituto Guatemalteco de Seguridad Social, IGSS) provides mandatory social security coverage. Employers contribute 10.67% of the applicable salary base and employees contribute 4.83%, withheld through payroll. Contributions fund the Sickness, Maternity and Accident program (EMA) and the Disability, Old Age and Survivorship program (IVS), which provide medical care and applicable cash, pension and survivor benefits. Employers must register with IGSS, enroll their employees, and report salaries and contributions through the IGSS electronic payroll system (Planilla Electronica).
Sources:
– Guatemalan Social Security Institute (IGSS)
– Organic Law of the Guatemalan Social Security Institute (Decree 295)
Yes. Guatemala has the largest working-age population in Central America, and English-Spanish bilingual talent is available across a range of professional, technical and operational profiles. Depth varies by city and by role, with the Guatemala City metropolitan area concentrating the largest pool. Invest Guatemala maintains a Human Talent Dashboard that maps skills, including English proficiency, across 22 departments and 200 municipalities, and can be consulted here.
Sources:
– Invest Guatemala, Human Talent Dashboard
– National Institute of Statistics (INE)
– Technical Institute for Training and Productivity (INTECAP)
Guatemala has 17 authorized universities: the University of San Carlos of Guatemala, the national public university, and 16 private universities, all legally empowered to award degrees valid in Guatemala. Technical and vocational training is delivered mainly by the Technical Institute for Training and Productivity (INTECAP), which operates a nationwide network of centers and develops customized programs for employers, alongside a broad network of technical institutes distributed across the country, with most municipalities served by at least one.
Sources:
– National Institute of Statistics (INE)
– Private Higher Education Council (CEPS), Private Universities Law (Decree 82-87)
– University of San Carlos of Guatemala (USAC)
– Technical Institute for Training and Productivity (INTECAP)
– Invest Guatemala, Human Talent Dashboard
Employment begins with a statutory probationary period of two months. During that period either party may terminate the relationship without cause, without notice and without liability, so no severance is due. After the probationary period, an employee dismissed without just cause is generally entitled to statutory severance equivalent to one month’s salary for each year of continuous service, or the proportional amount for shorter periods, in addition to accrued vacation and the proportional Christmas and mid-year bonuses. Severance is generally not owed where the dismissal is justified under the Labor Code, where the employee resigns, or where a fixed-term contract expires. Guatemalan law also provides enhanced protection in specific circumstances, including pregnancy and lactation.
Sources:
– Labor Code (Decree 1441), arts. 76-82 and art. 81 (probationary period)
– Ministry of Labor and Social Welfare (MINTRAB)
Yes, subject to statutory proportions. Under Article 13 of the Labor Code (Decree 1441), employers must maintain at least 90% Guatemalan workers and pay them at least 85% of total wages, which in practice limits foreign nationals to 10% of headcount and 15% of payroll. Senior management positions, including managers, directors, administrators and superintendents, are excluded from this calculation. Each foreign employee requires a work permit from the Ministry of Labor (MINTRAB), applied for by the employer through the ministry’s electronic platform, in addition to the appropriate immigration status. Permits are issued for one year and are renewable.
Sources:
– Labor Code (Decree 1441), art. 13
– Regulations on Work Authorization for Foreign Nationals, Government Agreement 528-2003
– Ministry of Labor and Social Welfare (MINTRAB)
– Invest Guatemala, “Work Permit for Foreign Nationals”
6. Immigration
It depends on nationality. Guatemala classifies countries into categories, and nationals of some countries may enter for tourism or business without a visa, while nationals of other countries require a visa issued by a Guatemalan consulate before travel. Travelers can check the requirement applicable to their nationality on the Ministry of Foreign Affairs website.
Sources:
– Ministry of Foreign Affairs (MINEX), Visas for Foreign Nationals
– Guatemalan Migration Institute
– Migration Code (Decree 44-2016)
– Invest Guatemala, “Guatemalan Visa Application Process”
Foreign nationals who will live and work in Guatemala require residency under the Migration Code. Temporary residency categories include migrant workers, self-employed persons, students, researchers and scientists, among others, and there is a category for investors, which requires evidence of participation in one or more commercial entities or of investment in assets, with a minimum investment of USD 100,000. Permanent residency is available after a qualifying period of temporary residency and in other defined circumstances. Applications are processed by the Guatemalan Migration Institute. Residency and the work permit are separate authorizations and are generally pursued together. Invest Guatemala sets out the residency routes most relevant to companies at https://investguatemala.com/temporary-residency-for-migrant-workers/.
Sources:
– Migration Code (Decree 44-2016)
– Guatemalan Residency Regulations, Agreement IGM-016-2025, art. 17
– Guatemalan Migration Institute, Residency
– Invest Guatemala, “Temporary Residency for Migrant Workers”
Employment of a foreign national requires a work permit issued by the Ministry of Labor and Social Welfare (MINTRAB). The employer submits the application through MINTRAB’s electronic platform for work permits for foreigners. Invest Guatemala’s guide to the process is available at https://investguatemala.com/work-permit-for-foreign-nationals/.
Sources:
– Regulations on Work Authorization for Foreign Nationals, Government Agreement 528-2003
– Ministry of Labor and Social Welfare (MINTRAB)
– Invest Guatemala, “Work Permit for Foreign Nationals”
Foreign university degrees generally require homologation (formal recognition) in order to be used for regulated professional purposes in Guatemala, a process handled through the Universidad de San Carlos de Guatemala. Recognition is typically required where the role involves the exercise of a regulated profession, such as engineering, law, medicine or certain accounting functions. Many corporate positions do not require it.
Sources:
– University of San Carlos of Guatemala (USAC)
– Invest Guatemala, “Services”
7. Trade and Market Access
Guatemala has 16 trade agreements in force, according to the Ministry of Economy. Eleven are commercial agreements: CAFTA-DR with the United States and the Dominican Republic; the Association Agreement between Central America and the European Union; and free trade agreements with Mexico, Colombia, Chile, Panama, Peru, the Dominican Republic, Taiwan, Israel and the United Kingdom. Four are partial scope agreements, with Belize, Cuba, Ecuador and Venezuela. The sixteenth is Guatemala’s participation in Central American economic integration. Together these cover more than 45 countries. Guatemala’s accession to the Central America-Korea free trade agreement has been approved and is pending entry into force.
Sources:
– Ministry of Economy (MINECO), Trade Agreements in Force
– Ministry of Economy (MINECO), Partial Scope Agreements in Force
– Ministry of Economy (MINECO), Central American Economic Integration Instruments in Force
– Ministry of Economy (MINECO), Investment Agreements in Force
The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) provides duty-free or preferential access to the United States market for qualifying goods produced in Guatemala, subject to the agreement’s rules of origin. To claim preference, an exporter must be able to demonstrate that the good meets the applicable origin rule and must issue the required certification. The agreement text and the applicable rules of origin are available at https://www.mineco.gob.gt/tratados-vigentes-libre-comercio-cafta.
Sources:
– Ministry of Economy (MINECO), CAFTA-DR agreement text and rules of origin
– Superintendency of Tax Administration (SAT), International Agreements and Treaties
Yes. Guatemala participates in Central American economic integration, which provides for the free movement of originating goods within the region and a common external tariff on most products. In practice this means a company producing in Guatemala can approach Central America as a single regional market rather than as a set of separate export destinations. Guatemala and Honduras also operate a deepened customs union arrangement. Requirements and procedures are administered by the Ministry of Economy and by SAT customs.
Sources:
– Ministry of Economy (MINECO), Central American Economic Integration Instruments in Force
– Central American Economic Integration Secretariat (SIECA)
Imports into Guatemala are processed through the Central American Single Declaration (DUCA), submitted to SAT customs with supporting documentation. Customs duties are determined by the tariff classification of the goods under the Central American Tariff System, and imports are generally also subject to 12% VAT on the customs value. Companies qualifying under Decree 29-89, a free trade zone or a ZDEEP may be exempt from, or receive suspension of, duties and import VAT on machinery, equipment, parts and accessories required for the authorized activity. Clearance times vary with the port of entry, the documentation and the customs risk assessment result.
Sources:
– Superintendency of Tax Administration (SAT), Customs
– Central American Tariff System (SAC)
– Ministry of Economy (MINECO), Export and Maquila Law (Decree 29-89) and Free Trade Zones Law (Decree 65-89)
8. Infrastructure, Real Estate and Utilities
Guatemala has coastlines on both the Pacific and the Caribbean. The main ports are Puerto Quetzal on the Pacific and Santo Tomás de Castilla on the Caribbean, alongside a private container terminal at Puerto Barrios. The main international airport is La Aurora International Airport in Guatemala City, with a second international airport, Mundo Maya, in Petén. This two-ocean position allows companies to serve North American, European and Asian markets from a single production base, and it is one of the reasons Guatemala is used as a regional logistics location.
Sources:
– Invest Guatemala, “Infrastructure and Energy”
– Civil Aviation Authority (DGAC)
– Puerto Quetzal Port Authority
Guatemala’s electricity market is regulated by the National Electric Energy Commission (CNEE), under the Ministry of Energy and Mines (MEM). Installed generation capacity is approximately 3,400 MW, with a diversified matrix based on hydropower, biomass, geothermal, solar and wind alongside thermal generation. Renewable sources accounted for approximately 65% of generation in 2025. Coverage and service quality in the main urban and industrial areas are high, with distribution coverage in the Guatemala metropolitan area above 99%. Large industrial consumers may contract directly in the wholesale market as large users.
Sources:
– National Electric Energy Commission (CNEE)
– Ministry of Energy and Mines (MEM)
– Wholesale Market Administrator (AMM), annual wholesale market reports
Guatemala serves as a telecommunications hub for northern Central America. The country has submarine cable landing points on both coasts – Puerto Barrios on the Caribbean and Puerto San José on the Pacific – connecting it to multiple international cable systems and providing geographic redundancy on international connectivity. The market is privately operated, with several carriers providing enterprise dedicated internet, private links, MPLS and redundant corporate networks in the main metropolitan and business areas. Fiber is the dominant fixed technology, with mobile broadband coverage across urban areas. The sector is regulated by the Superintendency of Telecommunications (SIT).
Sources:
– Superintendency of Telecommunications (SIT)
– General Telecommunications Law
– TeleGeography Submarine Cable Map
Guatemala is approximately three hours’ flying time from major cities in the southern United States and roughly four to six days by sea to United States ports. Its position on both the Pacific and Caribbean coasts, combined with land borders with Mexico, Belize, Honduras and El Salvador, allows companies to combine maritime, air and overland routing. For companies serving North America, this proximity also means same-day executive travel and a full working-day overlap with United States time zones.
Sources:
Yes. Foreign individuals and foreign-owned Guatemalan companies may acquire and own real property in Guatemala on the same basis as nationals, and no special authorization is required. Acquisitions are formalized by public deed before a notary and registered with the General Property Registry, which provides public record of title. Owned property is subject to the Single Property Tax (Impuesto Único Sobre Inmuebles, IUSI), an annual municipal tax calculated on the registered value of the property. Companies that prefer not to own may lease land or built space, including within industrial parks and free trade zones.
Sources:
– General Property Registry
– Single Property Tax Law (Decree 15-98)
– Foreign Investment Law (Decree 9-98)
Yes. Guatemala has an established base of industrial parks, logistics parks and free trade zones, concentrated in the Guatemala City metropolitan area and along the corridors toward the Pacific and Caribbean ports. Invest Guatemala maintains a directory of parks and zones, with information on available area and services, at https://investguatemala.com/directory/.
Sources:
– Invest Guatemala, Directory of Industrial Parks and Free Zones
– Invest Guatemala, “Infrastructure and Energy”
Permits depend on the location, the type of facility and the activity. A commercial or industrial operation will generally require a construction license and an operating license from the municipality where it is located, an environmental instrument approved by the Ministry of Environment and Natural Resources where the activity requires one, and sector-specific authorizations such as health registration for food or life sciences operations. Utility connections are arranged with the relevant distributor. Requirements vary by municipality and by activity; Invest Guatemala can help identify the applicable institutions and procedures for a specific project.
Sources:
– Ministry of Environment and Natural Resources (MARN)
– Municipal Code (Decree 12-2002)
– Invest Guatemala, “Services”
9. Banking and Foreign Exchange
Yes. A foreign-owned Guatemalan company may open a corporate bank account once it has been incorporated and registered and has obtained its NIT. Banks in Guatemala are supervised by the Superintendency of Banks (Superintendencia de Bancos, SIB) and are subject to anti-money laundering and customer identification requirements, so they must identify and verify the entity, its legal representative and the individuals who ultimately own or control it.
Sources:
– Superintendency of Banks (SIB)
– Anti-Money Laundering Law (Decree 67-2001)
No. Guatemala operates a free foreign exchange regime. Under the Foreign Exchange Free Negotiation Law (Decree 94-2000), the holding, contracting, remittance, transfer, purchase and sale of foreign currency are freely permitted, and no foreign exchange controls are in place. The Bank of Guatemala (Banco de Guatemala) is the central bank and publishes the reference exchange rate. The quetzal has been comparatively stable against the United States dollar over an extended period, which reduces currency risk for companies with local cost bases and foreign-currency revenue.
Sources:
– Foreign Exchange Free Negotiation Law (Decree 94-2000), art. 1
– Bank of Guatemala (central bank)
Yes. Guatemala does not impose general restrictions on the remittance of profits or the repatriation of capital. Under the Foreign Exchange Free Negotiation Law (Decree 94-2000), foreign currency may be freely purchased, transferred and remitted abroad. Dividend distributions are subject to a 5% withholding tax at source under the Income Tax Law, and companies must have satisfied their Guatemalan tax and corporate obligations before distributing. Companies qualifying under certain special regimes may benefit from different treatment of distributions.
Sources:
– Foreign Exchange Free Negotiation Law (Decree 94-2000)
– Income Tax Law (Decree 10-2012)
The national currency is the quetzal (GTQ). Guatemala’s free foreign exchange regime allows companies to hold and operate accounts in both quetzales and foreign currency, mainly United States dollars, subject to the requirements of the bank. Contracts may be denominated in foreign currency, and the quetzal has been comparatively stable against the dollar over an extended period. Payroll is generally paid in quetzales, since statutory wages, bonuses and social security contributions are set in that currency.
Sources:
– Foreign Exchange Free Negotiation Law (Decree 94-2000)
– Bank of Guatemala (central bank)
10. About Invest Guatemala
Invest Guatemala is the private investment promotion agency that positions Guatemala as a destination for foreign direct investment. It works with companies assessing the country, supporting them through the evaluation, establishment and expansion phases, and coordinates with private chambers, ministries and public institutions on behalf of investors. Invest Guatemala’s role is to give investors accurate information, facilitate access to the right counterparts, and accompany the process.
Sources:
Invest Guatemala supports investors with industry and market information, facilities and site location information, identification of local partners, guidance on company formation and registration, orientation on special regimes such as free zones, Decree 29-89 and ZDEEP, orientation on permits, licenses and operating requirements, support with residence and work permit procedures, university degree homologation, real estate purchase and leasing support, identification of funding sources, referral to legal, tax, environmental and compliance advisors, and coordination of investment missions and meetings with public and private counterparts.
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No. Invest Guatemala does not charge for its services. Information, orientation, site and cost data, introductions to public and private institutions, and accompaniment throughout the evaluation and establishment process are provided at no cost to the investor. Specialized professional services that a project requires, such as legal representation, notarial work, tax structuring or environmental studies, are provided by third-party professionals and are contracted and paid for directly by the investor. Invest Guatemala can refer investors to established providers but does not charge a fee or commission for doing so.
Sources:
– Invest Guatemala, “Private Investment Promotion Agency”
– Invest Guatemala, “Services”
– Invest Guatemala, “Contact Us” – Invest Guatemala, “Foreign Investment Project Profile”
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Important Note:
The information on this page is provided for general guidance only. It does not constitute legal, tax, labor, immigration or investment advice, and it does not create an advisory, fiduciary or contractual relationship between Invest Guatemala and any reader. No one should act, or refrain from acting, on the basis of this page alone.
Requirements, procedures and costs vary depending on the nature and scope of the investment, the sector, the corporate structure chosen and the location of the project. Figures established by statute or by administrative resolution, including minimum wages, contribution rates, tax rates, fees and processing times, are revised periodically. Eligibility for any special regime or incentive depends on a formal application to, and a resolution from, the competent authority. Invest Guatemala does not grant permits, licenses, authorizations or incentives; those decisions rest with the competent public institutions.
This page reflects information believed to be accurate at the date of publication. Where anything summarized here differs from the applicable law, regulation or the position of the competent institution, the official source prevails. Links to government and third-party websites are provided for convenience; Invest Guatemala does not control and is not responsible for their content or availability.
Invest Guatemala can help investors identify the relevant institutions and procedures for their project and, where useful, refer them to established professional advisors. Companies should obtain their own legal, tax, labor and regulatory advice, appropriate to their circumstances, before making commitments or investment decisions. Invest Guatemala accepts no liability for any loss arising from reliance on the information on this page.
Last updated: August 2026.