If you live in the US and rent out a house you own in Guatemala, two tax systems apply to the same rent. In Guatemala, a tax-resident owner pays 10% income tax on the rent minus a flat 30% expense allowance, which works out to 7% of the gross rent (Decreto 10-2012, Arts. 84, 88 and 92). An owner who lives in the US may count as a non-resident instead, and the article of the same law that sets non-resident rates (Art. 104) does not name rent, so get SAT’s answer in writing first. In the US, the rent goes on Schedule E (Schedule C if you provide substantial services for the tenant), the house is depreciated over 30 years under the IRS’s alternative system (40 years if it was placed in service before 2018), and the Guatemalan tax may qualify for a credit on Form 1116.
This page sets out both sides for an owner in the US. SAT’s payment channels for the rent-tax slip are on our diaspora hub, under renting out your house; the Airbnb and short-stay angle, including VAT (IVA) and INGUAT, is in our Airbnb ROI guide.
Quick summary
| Question | Official rule | Source |
|---|---|---|
| Who is a Guatemalan tax resident? | More than 183 days in Guatemala in a calendar year, or centre of economic interests in Guatemala (unless you prove residence elsewhere with a foreign tax certificate) | Decreto 10-2012, Art. 6 |
| Resident owner: what kind of income is rent? | Rental capital income (rentas del capital inmobiliario), when trading property is not your habitual business | Art. 84 |
| Resident owner: tax base and rate | Rent received minus 30% for expenses; 10% rate | Arts. 88 and 92 |
| Resident owner: when to pay if nothing was withheld | Within the first 10 days of the month after the rent was received | Art. 95 |
| Non-resident owner: how rent is taxed | Each payment taxed separately; base is the amount paid or credited; Art. 104 names no rate for real-estate rent; 25% for income not listed elsewhere | Arts. 101, 103 and 104 |
| Who else can owe the tax? | Whoever pays a non-resident, and whoever administers the non-resident’s property, is jointly liable | Art. 99 |
| Property tax | IUSI, governed by Decreto 15-98, paid quarterly or annually | SAT |
| US return | Schedule E (Schedule C with substantial tenant services); ADS depreciation over 30 years (40 if placed in service before 2018); possible foreign tax credit on Form 1116 | IRS |
| FBAR | If your foreign accounts together went above $10,000 at some point in the year; due April 15 | IRS |
| The house on FBAR or Form 8938? | Not reported when held directly | IRS |
Step one: are you a Guatemalan tax resident?
The answer decides which part of the income tax law applies to your rent. Article 6 of Decreto 10-2012 treats an individual as a tax resident in either of two cases:
- they stay in Guatemala for more than 183 days during the calendar year (1 January to 31 December), even if not continuously; or
- their centre of economic interests is in Guatemala, unless they prove tax residence or domicile in another country with a certificate issued by that country’s tax authorities.
A Guatemalan who lives and works in the US and spends a few weeks a year in Guatemala does not meet the first test. Whether the second one catches an owner whose main asset is the Guatemalan house is a question for SAT or a Guatemalan accountant. If you need to prove US tax residence, the law points to a certificate from the US tax authority; how to obtain one is outside this page.
Guatemalan income tax if you are a resident
Title IV of Decreto 10-2012, on capital income, names residents as its taxpayers (Art. 85). For them:
- What counts. Article 84 classes income from renting or subletting real estate, or from granting rights to use it, as rental capital income, provided trading in such property is not the owner’s habitual business.
- The base. Article 88 sets the base as the rent paid, credited or otherwise made available, minus 30% of that rent for expenses. If your real expenses were higher, you can show it with a sworn statement filed in January, together with a refund request.
- The rate. Article 92 sets 10%.
- Payment. Article 94 obliges anyone paying capital income to withhold the tax where it applies. When nothing was withheld, Article 95 says the owner settles and pays it within the first 10 days of the month after the rent was received.
A worked example. Monthly rent of Q5,000: the base is Q5,000 minus 30%, or Q3,500, and 10% of that is Q350 a month, which is 7% of the gross rent. At Banguat’s reference rate for 4 November 2026 (Q7.64082 per US dollar), that is about US$654 of rent and US$46 of tax.
Guatemalan income tax if you are a non-resident
Title V of the same law (Rentas de no residentes) taxes non-residents on income that is taxable under the law’s earlier titles (Arts. 97 and 98). For a non-resident without a permanent establishment in Guatemala:
- Each payment stands alone. Article 101 says the tax is charged separately on each full or partial payment or credit, with no offsetting between them.
- The base. Article 103 sets the base as the amount actually paid or credited. Unlike Article 88 for residents, it mentions no 30% expense allowance.
- The rate. Article 104 sets 5% (international transport, insurance premiums, international telecommunications, dividends and profit distributions), 3% (international news, films, music recordings and similar content), 10% (interest), 15% (salaries and other pay, payments to athletes and performers, royalties, fees, and scientific, economic, technical or financial advice) and 25% for any other taxable income the earlier numerals do not cover. None of these categories names rent from real estate.
SAT’s compliance FAQ describes two forms that could fit. Form SAT-1321 is for income tax on capital inmobiliario, mobiliario and capital gains, filed in the first 10 business days of the calendar month after each tax period. Form SAT-1371 is for non-residents without a permanent establishment who receive taxable income in Guatemala that was not withheld, filed in the first 10 business days of the calendar month after the payment or bank credit. Neither Article 104 nor these two form descriptions names rent paid to a landlord who lives abroad, so ask SAT for a written answer on the rate and the form, or have a Guatemalan accountant obtain one, before your first filing. Form SAT-1321 starts with the taxpayer’s NIT, so get one first: see getting your CUI and NIT from the USA.
Your manager can be liable too
Article 99 of Decreto 10-2012 makes two groups jointly liable (responden solidariamente) for the tax of a non-resident without a permanent establishment: whoever pays the income, which covers the tenant, and the depositaries or administrators of the non-resident’s property, for the income from the property they hold or administer. A relative or agent who collects the rent and looks after the house for you may fall in the second group, so settle in writing, before the first rent payment, who files and pays the tax.
If your manager will sign leases or handle paperwork in your name, granting a power of attorney from the US is covered in our consular power of attorney guide and in notarial powers of attorney from the USA.
IUSI stays with the owner
Income tax on the rent is separate from the property tax. SAT describes IUSI as the contribution that owners of rural and urban real estate make to the State, with most of what is collected going to the municipalities, most of which collect and administer it themselves, and governed by Decreto 15-98; it is paid quarterly or annually. Rates and how to pay from the US are in our IUSI property tax guide.
The US side: Schedule E, depreciation and the foreign tax credit
Worldwide income. The IRS says US citizens and resident aliens owe US tax on their income from anywhere in the world, under generally the same filing rules whether they live in the US or abroad. Rent from a house in Guatemala is part of that income.
Schedule E. The IRS’s topic on rental income says money or property you receive as rent for real estate is taxable, that rental expenses can generally be deducted, and that real estate rental income and expenses can generally be reported on Schedule E (Form 1040); if you provide substantial services mainly for the tenant’s convenience, they go on Schedule C instead. Deductible expenses it lists include depreciation, repairs, and operating expenses such as fees paid to independent contractors like gardeners, bookkeepers, accountants and lawyers. The IRS notes that most individuals use the cash method: rent counts when received, advance rent counts in the year received, and a security deposit you may have to return is not income.
Depreciation over 30 years. IRS Publication 946 lists the property that must use the Alternative Depreciation System (ADS), and that list includes any tangible property used mainly outside the US in the tax year. Its ADS table gives residential rental property a 30-year recovery period, or 40 years if the property was placed in service before 1 January 2018. Under the general system (GDS), the same publication gives residential rental property 27.5 years.
Foreign tax credit. The IRS says that if you paid foreign taxes on income that is also subject to US tax, you may be able to claim them as a credit or as an itemized deduction. The credit is generally limited to income taxes, war profits taxes and excess profits taxes, and the IRS says that in most cases the credit works out better. If you elect to exclude income earned abroad or housing costs abroad, no credit is allowed for the tax on that excluded income. Individuals claim it on Form 1116. The United States has no income tax treaty with Guatemala: Guatemala does not appear on the IRS’s A-to-Z list of US income tax treaties.
FBAR and Form 8938: the account, not the house
- The house. The IRS’s comparison of Form 8938 and FBAR says foreign real estate held directly is reported on neither form. Held through a foreign entity, it is the entity that may be reportable on Form 8938.
- FBAR. A US person must file an FBAR (FinCEN Form 114) if they hold a financial interest in, or have signing or other authority over, foreign financial accounts whose combined value went above $10,000 at some point in the calendar year. It is due April 15 and is extended automatically to October 15, and it is filed online through the BSA E-Filing System run by FinCEN, not with your tax return. The IRS says an account held with a bank or other financial institution located outside the US generally counts as a foreign financial account, so a Guatemalan bank account where the rent lands counts toward that total.
- Form 8938. For specified individuals who live in the US, the threshold is total foreign financial assets above $50,000 at the end of the tax year or above $75,000 at any point in the year if unmarried; for married couples filing jointly, $100,000 and $150,000.
Before you hand over the keys
- Decide with SAT or an accountant whether you file as a resident or a non-resident, and which form and rate apply.
- Get a NIT, and put in writing who files and pays the Guatemalan tax, you or your manager.
- If the manager will sign leases for you, read the power of attorney guides linked above.
- Keep IUSI paid and the receipts on file.
- Keep Guatemalan tax receipts for Form 1116, and depreciate the house under ADS from when it is placed in service as a rental (30 years, or 40 if placed in service before 2018).
- Add the Guatemalan rent account to your FBAR count.
If you later sell the house, see selling property in Guatemala while living in the USA.
Sources
- SAT, Decreto 10-2012, Ley de Actualización Tributaria, Libro I (Arts. 6, 84-86, 88, 92, 94-95, 97-99, 101, 103-104): portal.sat.gob.gt PDF, read 5 November 2026.
- SAT, Preguntas frecuentes, cumplimiento tributario (forms SAT-1321 and SAT-1371): portal.sat.gob.gt, read 5 November 2026.
- SAT, Principales impuestos en Guatemala (IUSI): portal.sat.gob.gt, read 5 November 2026.
- IRS, Topic no. 414, Rental income and expenses: irs.gov, read 5 November 2026.
- IRS, Publication 946, How To Depreciate Property: irs.gov, read 5 November 2026.
- IRS, Foreign Tax Credit: irs.gov, read 5 November 2026.
- IRS, About Form 1116: irs.gov, read 5 November 2026.
- IRS, U.S. citizens and resident aliens abroad: irs.gov, read 5 November 2026.
- IRS, United States income tax treaties, A to Z: irs.gov, read 5 November 2026.
- IRS, Report of Foreign Bank and Financial Accounts (FBAR): irs.gov, read 5 November 2026.
- IRS, Comparison of Form 8938 and FBAR requirements: irs.gov, read 5 November 2026.
General information, not tax advice. Confirm your residence status, form and rate with SAT, and your US reporting with the IRS or a tax professional.
Frequently Asked Questions
What income tax does Guatemala charge on rent from my house?
For a Guatemalan tax resident, rent from real estate when trading property is not the owner’s habitual business is rental capital income (Decreto 10-2012, Art. 84). The tax base is the rent received minus 30% for expenses (Art. 88), and the rate is 10% (Art. 92), so 7% of the gross rent unless you prove higher expenses. An owner living in the US may instead be a non-resident under Art. 6; for non-residents, Art. 104 names no rate for real-estate rent and sets 25% for taxable income not listed elsewhere. Get SAT’s answer in writing before the first filing.
Am I a Guatemalan tax resident if I live in the US?
Art. 6 of Decreto 10-2012 treats an individual as resident if they spend more than 183 days in Guatemala in a calendar year, or if their centre of economic interests is in Guatemala, unless they prove tax residence in another country with a certificate from that country’s tax authority.
Is my property manager in Guatemala responsible for my tax?
For a non-resident owner, possibly. Art. 99 of Decreto 10-2012 makes whoever pays income to a non-resident without a permanent establishment, and the depositaries or administrators of that non-resident’s property, jointly liable for the tax on the income they paid or on the property they administer.
How do I report Guatemalan rent on my US return?
US citizens and resident aliens are taxed on worldwide income. The IRS says rental real estate income and expenses can generally be reported on Schedule E (Form 1040), or on Schedule C if you provide substantial services mainly for the tenant’s convenience. Property used mainly outside the US must be depreciated under ADS (IRS Publication 946): 30 years for residential rental property, or 40 years if it was placed in service before 1 January 2018. If the same rent is subject to US tax, the Guatemalan income tax may qualify for a foreign tax credit on Form 1116 or an itemized deduction.
Do I report the house itself on FBAR or Form 8938?
No. The IRS comparison table says foreign real estate held directly is not reported on either form. The bank account where the rent lands is another matter: an FBAR is required if your foreign financial accounts together went above $10,000 at some point in the year, and Form 8938 applies above its own thresholds.
