Let´s deal with the most commonly asked question, “Can a foreigner own property in Guatemala”? ABSOLUTELY, there are no restrictions as to who can own property. If you purchase property, you will have all the rights accorded to any Guatemalan citizen.
Land Measurement
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1 square vara = 0.9166
square yards
1 square meter = 1.43115 square varas
1 Manzana = 10,000 square varas or 6,988 square
meters
1 Manzana = 1.7 Acres or 6 cuerdas
1 Hectare = 2.4 Acres = 1.43 Manzanas
1 Caballería = 45.12 Hectares = 64 Manzanas
Generally, land is presented for sale within areas
such as Antigua in Square Varas, but outside of
the cities, the farmlands are normally referred
to in Manzanas or Caballerías.
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Location
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Using Central Park in Antigua as a
landmark, you can rest assure that property in the
immediate vicinity will be quite expensive.
Currently (2003) prices per Vara, not including any
building can be as high as $275.00. Now, if you look at
property 5 to 6 blocks from Central Park, prices can drop to
$125.00 a Vara. By moving further out of
Antigua, but only a few kilometers, you can find
property for as little as $30.00 a Vara. If being close
to the "action" is important and you would prefer to walk
rather than drive then be prepared to pay the price.
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Building as an option
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As building lots in Central Antigua are hard to find, you would
probably confine this decision to areas slightly outside
of the city. 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.
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Building Costs
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Based on the finishing details and the quality of the materials,
you can build for as little as $325.00 per square
meter and with finer touches and finishes from $425.00
to $450.00 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 lot of 400 Varas in a good location should cost you between $150,000.00
to $160,000.00 depending on land cost.
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Financing
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As of 2001 banks and other financial institutions are now
lending U.S. dollars, as well as Quetzales. As
with any loan, you must qualify. This means filling
out an application and showing assets and liabilities and
source of income. Generally a down payment of 30% or greater
of the appraised value is required to be considered for
a loan. Buying privately rather than from a developer is usually
cash only but most developers have finance packages in
place so it is easier to purchase through the builder.
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Negotiating
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A good rule of thumb is that everything in Guatemala is negotiable.
Private homes 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.
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Legal Assistance
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Remember, trust no one! Always have a lawyer in your corner from
start to finish. A good reputable lawyer can save you time,
money and frustration and will provide protection from property
owners who may not be disclosing all the facts. You could
lose a great deal of money and have several "surprises" should
you try to do it on your own. Lawyer´s fees are more than
reasonable so the minor costs will be money well spent.
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Taxes
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Your annual property taxes for an average home, should be somewhere
around $250.00. I.V.A. is a tax applied to all purchases
that take place in Guatemala. The current tax applied
to the purchase of a home is 12% of the value of
the compra venta document that is used to register the
home with the Government. This is an area that we, or
your lawyer can guide you through with regard to the actual
amount tax that you can expect to pay.
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Finalizing a purchase
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Nothing is done until the papers are signed and money has changed
hands. You must enter into a Promesa de Compra Venta
that outlines the price and terms agreed to and is signed by
all parties in front of a lawyer. Once this has been done, you are
assured that the deal will be completed a long as you are able
to satisfy the conditions. Don´t sign unless you are sure you can
complete, as you can lose all monies deposited if you should
decide to cancel the agreement. The Promesa outlines a time frame
when the actual deal will close and all the conditions have been
met. Once this has been done the formal Contrato de Compra Venta
will be created, the final monies paid and the title registered
in your name.
Congratulations, you are now a proud homeowner!
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