Explore Countries for Living & Doing Business
Find and compare the best jurisdictions for your business
Find and compare the best jurisdictions for your business
Compare with other jurisdictions or get in touch for expert guidance.
Guatemala is Central America's largest economy with low personal income tax (7%), low minimum capital requirements, and access to CAFTA-DR trade benefits.
Region
CENTRAL AMERICA
Corporate Tax
25%
Setup Time
4 weeks
Currency
GTQ
Home to Central America's largest economy and population, Guatemala offers market scale unavailable elsewhere in the region. From the colonial beauty of Antigua to the Mayan heritage of the highlands, the country combines ancient culture with economic dynamism.
Life in Guatemala offers remarkable diversity. Guatemala City is the region's largest urban center. Antigua provides colonial charm and a significant expat community. Lake Atitlán attracts those seeking natural beauty and indigenous culture.
The population of approximately 18 million creates the largest domestic market in Central America. Spanish is predominant, with English concentrated in business centers.
Healthcare varies significantly. Private hospitals in Guatemala City offer quality care. Safety requires attention, with higher violent crime rates than some regional neighbors.
Guatemala's business environment offers Central America's largest GDP with a relatively moderate 25% corporate tax rate. More notable is the remarkably low 7% flat personal income tax rate, one of the lowest in the Americas.
CAFTA-DR membership provides preferential access to US markets. Free trade zone incentives offer tax benefits for qualifying export operations.
Company formation requires minimal capital of only USD 200, making entry highly accessible. The process typically takes four weeks.
Foreign ownership is permitted at 100% in most sectors. Banking functions adequately, with both local and international banks present.
Agriculture and agribusiness drive significant economic activity. Manufacturing for export, particularly textiles, leverages CAFTA-DR access. The BPO and call center industry has grown substantially.
Security remains Guatemala's primary challenge. Infrastructure varies significantly. Corruption affects various interactions with government entities.
For businesses seeking Central American presence with genuine market scale, Guatemala offers advantages from sheer size unavailable elsewhere in the region.
Local: Ltda.
Local: S.A.
Local: Sucursal
| Corporate Tax Rate | 25% |
| Personal Income Tax Rate | 7% |
| VAT / Sales Tax | 12% |
| Capital Gains Tax | 10% |
| Withholding Tax | 10% |
| Reduced Corporate Tax Available | No |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | No |
| Banking Access | MEDIUM |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Local Bookkeeping Required | No |
| Mandatory Audit | No |
No dedicated crypto licensing framework in Guatemala. Cryptocurrency activities are permitted but unregulated.
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $1,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Business plan required |
| Personnel Required | Management team |
| Insurance Required | No |
| Insurance Details | Bank guarantee required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Ministry of Economy maintains casino records |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Gaming Commission or equivalent |
| Licensing Fee | $100,000 |
| Licensing Fee Details | Standard gambling licensing |
| Permitted Business Models | Casino, Sports Betting |
| Permitted Activities | Land-based and online gambling |
| Restricted Activities | Varies by jurisdiction |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | No |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $200,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF guidelines |
| Business Plan Required | Comprehensive business plan |
| Personnel Required | Qualified management, compliance officer |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank |
| Licensing Fee | $0 |
| Licensing Fee Details | Varies by license type |
| Permitted Business Models | Banking, EMI, Payment Services |
| Permitted Activities | Banking, payment services, lending |
| Restricted Activities | Deposit taking requires full banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |