Guatemala

Tax residency in Guatemala is generally triggered by physical presence exceeding 183 days in a calendar year. The country operates on a territorial basis: income sourced abroad is not subject to local income tax for residents, making it particularly attractive for individuals with cross-border income streams. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Optional simplified regime: 5% on gross receipts OR 7% on net profits. Territorial: foreign-source income exempt. Very low income tax rates. VAT 12%. Dividend tax 5%. Pensionado residency program. Antigua Guatemala popular expat destination. FATF grey list.

The standard corporate income tax rate is 25%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking access in Guatemala is attainable but may require more documentation and time than in simpler jurisdictions. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Guatemala is currently on the FATF grey list, indicating enhanced monitoring by the international AML/CFT body. This may affect banking relationships and counterparty due diligence requirements. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Guatemala ranks highest for Freelancer and High Net Worth Individual. It offers a reasonable proposition for freelancer (score: 62/100). It offers a reasonable proposition for high net worth individual (score: 60/100).