Guatemala · Tax on foreign income
Does Guatemala tax foreign income? A guide for Americans
Short answer
Guatemala taxes only income earned in Guatemala, so a retiree's US income isn't taxed. A remote employee staying more than 183 days pays 5–7%.
What you'd pay, by situation
| Retiree on US income $0 a year, however long you stay | US Social Security, pensions and US interest aren't taxed: Guatemala taxes only income earned here. |
|---|---|
| Remote worker paid from the US About $3,000 a year on $60,000; about $9,300 on $150,000 | After more than 183 days a year you're resident, and your pay is taxed at 5–7%. Shorter stays aren't settled Needs review |
| Working for a local employer Residents 5–7%; non-residents 15% of pay | Pay for work in Guatemala is taxed: 5% up to about $39,000 of taxable pay, then 7%. You'll need a local work permit. |
Not yet verified Read in archived copies of the tax law and its regulation.
How it works
- Tax residence: more than 183 days in a calendar year, or your main economic interests are in Guatemala.
- What's taxed: only income from Guatemala. A resident's job pay counts even when the work is done abroad.
- Filing: with no Guatemalan employer withholding, you file and pay within 3 months after the year ends.
- No US tax treaty: Guatemalan tax paid may be credited on your US return, which you still file; see a tax adviser.
- No Social Security agreement: the US and Guatemala have none, so check what you'd owe on both sides.
Taxes in Guatemala, with worked examples → The full Guatemala guide →
Questions people ask
Does Guatemala tax US Social Security and pensions?
US Social Security, pensions and US interest aren't taxed: Guatemala taxes only income earned here.
Remote worker paid from the US in Guatemala: what would I pay?
After more than 183 days a year you're resident, and your pay is taxed at 5–7%. Shorter stays aren't settled (Needs review) Ballpark: About $3,000 a year on $60,000; about $9,300 on $150,000.
Working for a local employer in Guatemala: what would I pay?
Pay for work in Guatemala is taxed: 5% up to about $39,000 of taxable pay, then 7%. You'll need a local work permit. Ballpark: Residents 5–7%; non-residents 15% of pay.