Guatemala Signs Decree Ending IUSI Property Tax on Homes
Guatemala has gazetted Decreto 18-2026, which zeroes the IUSI property tax on homes. A three-step scale survives for commercial buildings, and municipalities put the annual loss near US$157.4 million. The post Guatemala Signs Decree Ending IUSI Property Tax on Homes appeared first on The Rio Times .
Guatemala's government has ended the IUSI property tax on homes, with the new decree set to take effect. The tax, known as Impuesto Único Sobre Inmuebles, has been set to zero for residential and mixed-use buildings, according to Decreto 18-2026 published on 28 August 2026. Homes will no longer be required to pay the tax, regardless of their value.
The decision was made by President Bernardo Arévalo, who signed the decree on 27 August 2026. The final text of the decree received 120 votes in Congress, with a proposal for a flat three percent tax on all properties defeated. Municipalities will also be prohibited from cutting water, rubbish collection, or street lighting over unpaid tax, which removes a common enforcement tool.
The new commercial rate table will follow 90 days after publication, while the income tax and stamp duty changes are dated 1 January 2027. The finance minister estimated that removing the tax will cost municipalities about Q1.2 billion (US$157.4 million) annually.
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