Guatemala Property Tax Reform: 45 Towns Collected Nothing in 2025
New data shows 45 of Guatemala's 340 municipalities collected nothing from the IUSI property tax in 2025, as a reform reshapes who gains and who loses. The post Guatemala Property Tax Reform: 45 Towns Collected Nothing in 2025 appeared first on The Rio Times .
Forty of Guatemala’s 45 municipalities collected no IUSI property tax in 2025, according to new data from fiscal think-tank Icefi. The tax, which is collected by local governments, was meant to provide funds for poorer towns. However, many towns lack the necessary infrastructure and trained staff to administer the tax. The new reform, Decree 18-2026, will scrap the tax for homeowners and mixed-use properties, but commercial real estate will still pay.
To compensate, the new stamp tax on second and later property sales will go to the municipality where the property is located. However, the reform leaves out a compensation fund for towns that lose the most revenue. The changes are set to take effect in January 2027, but President Arevalo can veto the decree.
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