Do foreigners have restrictions for buying property in Guatemala?

Can I buy property through local bank financing?

What taxes apply when buying a property?

Is property purchased in Guatemala tax deducible in the U.S. or other countries?

What are the different legal ways to purchase property?

Are escrow companies available for property transactions?

Is property title insurance available in the country?

Can I buy property from outside of Guatemala?

What is the best way to pay for a property purchase?

Who pays for closing costs?

Who pays the commission fee for the real estate agent?

What restrictions are there if I decide to buy land and build?

What is the current construction cost for building a home?

Are sale prices negotiable?

Do foreigners have restrictions for buying property in Guatemala?
No. foreigners have the same rights as a Guatemalan when buying property. Restrictions apply to locals and foregners when buying properties in restricted area (borders to lakes, rivers, frontiers and seashores). Properties in these areas usually belong to the Guatemalan government, who will lease the property for 30 years, this timeframe is renewable and a fee is paid yearly. These properties are subject to buy & sell through OCRET (Oficina de Control de Areas de Reservas Territoriales del Estado). With all other properties you will receive full title. [Top]

Can I buy property through local bank financing?
Buying property through local bank financing is more difficult if you are not Guatemalan. Generally a Guatemalan co-signer is required for the process. The Guatemalan co-signer must qualify for the loan. For complete information regarding bank financing in Guatemala please refer to our Financing section on our main page.[Top]

What taxes apply when buying a property?
2 types of taxes apply when buying a property. The fist one is called I.V.A (Impuesto al valor agregado), which is a one time purchase tax. This tax is equal to 12%. Please note that on 99% of the cases, property is never registered at the real sale value but at a substantially lower value, therefore your tax is based on the registered value. We can tell you what the current registered value is in order to determine you purchase tax.

The other tax is called IUSI (impuesto unico sobre inmuebles or property tax). This tax is paid every year and you can pay it every 3, 6 or 12 months. This tax is paid to the Municipality of Antigua and the tax is based on 9 per 1000 of the registered value. Usually the tax is nominal and we can tell you what your property tax will be based on the property that you are buying.[Top]

Is property purchased in Guatemala tax deducible in the U.S. or other countries?
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What are the different legal ways to purchase property?
If you are paying cash for a property, you will need to sign a Compra-Venta (Buy &Sell) contract. A lawyer is needed to give faith or the transaction. The lawyer registers the legal document in the Registro General de la Propiedad (Generla Property Registry) and title is transferred in your name. this process can take up to 20 working days.

If the owner agrees to give you terms (1 or 2 years), you will need to sign a Promesa de Compra-Venta (Promise to buy & sell) contract, where all conditions are outlined. Upon final payment, title transfer is signed by both parties.

If the owner decides to give you private financing, you will need to sign a Compra-Venta con Hipoteca (Buy & Sell with Martgage) contract. The property is registerd in your name and a mortgage lien is registered in the owner’s name. upon final payment, the lien is removed and the property becomes free and clear.

A notary is always recommended in all transactions.[Top]

Are escrow companies available for property transactions?
No. Money is exchanged at the moment of contract signing. Be sure to always have a notary and a real estate agent on your corner before closing. Once you sign, money won’t be reversed.[Top]

Is property title insurance available in the country?
Property title insurance is available through Stewart Title Company. As a general rule, title search and verification is done by the your notary.[Top]

Can I buy property from outside of Guatemala?
Yes. There are 2 ways to buy property from outside of Guatemala. The first one (simplest way) is by the “gestor de negocios” (business manager) power. Any person of your trust can sign a cash deal in you behalf. There is no need for you to sign documents for this type of transaction.

The second one is by a “Poder de abogado” (power of attorney) document. You need to sign a document in front of a notary in your country, giving the right to somebody is Guatemala to sign in your behalf, then you need to take it to the nearest Guatemalan consulate, legalize it and send it through the Guatemalan Ministry of External Relationship to Guatemala for registration. Once the document is registered in the Archive of Power of Attorneys, it’s ready for your designated party to use through a Guatemalan notary. This document must be used if buying through a “Promesa de Compra-Venta” or “Compra-Venta con Hipoteca” contract. If this is too much complicated, you can always fly to Guatemala and sign all documents yourself.[Top]

What is the best way to pay for a property purchase?
The best way to pay for a property purchase is through a wire transfer. Due to the new money laundry laws in the county, you are not allowed to bring cash or documents in excess of $10,000.00 unless it’s properly documented.[Top]

A domestic or international wire transfer will be done simultaneously when documents are signed.

Who pays for closing costs?
The buyer is always responsible for paying all closing costs regarding property purchase. The closing costs reer to: Legal fees, registration fees and taxes.[Top]

Who pays the commission fee for the real estate agent?
The commission fee is always paid by the property owner.[Top]

What restrictions are there if I decide to buy land and build?
Antigua Guatemala is a protected UNESCO place. El consejo para la proteccion de la Antigua Guatemala is an advisory group conformed by architects and historians that will determine what you can or can’t do with your new building.

Building your own home will definitely save you money and the best part is that the home will be exactly as you want it, rather than buying someone else’s version of the perfect floor plan.[Top]

What is the current construction cost for building a home?
Based pm the finishing details and the quality of the materials, you can build for as little as $375.00 per square meter and with finer touches and finishes from $450.00 to $500.00 per square meter would be realistic. Additional to the building, you must consider architect fees, perimeter walls, connecting to water, sewer and electricity as well as landscaping. A nicely constructed custom designed home of 250 sq. meters on a lotof 400 Varas in a good location should cost you $200.00.00 or less depending on land cost.[Top]

Are sale prices negotiable?
A good rule of thumb is that everything in Guatemala is negotiable. Private properties can be listed higher than what the owner will finally agree to sell for this is not a general rule but the owner is expecting to reduce the price during negotiations.[Top]