Guatemala

Table of Contents

• Advantages
• What Others Say
• Tax Benefits
• Who it's for
• Residency Notes
• Tax Rates
• Sham Relocation Warning
• What Makes it Attractive
• Cost of Living
• Exit Tax
• Preparation
• CRS (Common Reporting Standard)
• Formalities
• How We Help

Advantages

What Others Say

"Guatemala is a hidden gem for anyone seeking a tax-friendly life. The people are incredibly friendly and the landscape is breathtaking."

"I moved my business to Guatemala and drastically reduced my tax burden. The bureaucracy is manageable and the opportunities are enormous."

"The quality of life in Guatemala is high, especially considering the low costs. I feel safe and welcome here."

Tax Benefits

The territorial principle is Guatemala's biggest tax advantage. This means that as a resident of Guatemala, you only pay taxes on income derived from Guatemalan sources. Income from abroad, such as online businesses, dividends, or rental income from properties outside Guatemala, is tax-free. This makes the country particularly attractive for digital nomads, retirees, and entrepreneurs who conduct their business internationally.

Who It's For

Residency Notes

Obtaining residency in Guatemala is relatively straightforward. There are various visa categories, including the retiree visa, investor visa, and visa for persons with independent income. A local lawyer can guide you through the process and ensure all requirements are met. After a few years, you can apply for permanent residency.

Tax Rates

Sham Relocation Warning

A sham relocation, where you move your residence to Guatemala but continue to spend most of your time and economic activities in your home country, can have serious tax consequences. Many countries have regulations against such practices and may continue to consider you taxable. It is crucial that your move is genuine and that you actually shift your center of vital interests to Guatemala.

What Makes It Attractive

The combination of territorial taxation, low cost of living, a growing economy, and a rich culture makes Guatemala an attractive destination for expatriates. The opportunity to live a life with a lower tax burden and high quality of life attracts more and more people.

Cost of Living

The cost of living in Guatemala is generally low. A comfortable apartment in a good area can be rented for 300-600 USD per month. Food is inexpensive, especially when shopping at local markets. Transportation costs are also low. Overall, one can live a good life with 800-1500 USD per month, depending on lifestyle.

Exit Tax

Guatemala does not levy an Exit Tax. This is another advantage for individuals who wish to emigrate from their home country and settle in Guatemala. However, it's important to check the Exit Tax regulations of your home country, as these may still apply.

Preparation

CRS (Common Reporting Standard)

Guatemala is not a signatory to the Common Reporting Standard (CRS). This means that Guatemalan banks do not automatically report information about foreign account holders to their home countries. This can be an advantage for individuals who wish to protect their financial privacy, but it should not be misunderstood as an invitation to tax evasion.

Formalities

How We Help

• •Analysis of your current situation and goals
• •Development of a tailored relocation strategy
• •Assistance with visa and residency applications
• •Company formation and business registration
• •Bank account opening and financial planning
• •Real estate guidance and property acquisition
• •Ongoing tax and administrative support
• •Wealth structuring and asset protection