Guatemala: VAT on Buying Second Home Purchases

To date, those buying a "used" home pay 12% in tax, which has discouraged the purchase and / or registration of properties. The issue is not trivial, given the shortage of 1.2 million housing units in Guatemala.

Hugo Maul, director of National Economic Research Center (CIEN), has proposed that the rate be replaced by a fee equivalent to 3% which would be paid via a stamp duty tax reported ElPeriodico.com.gt .

The effects of such tax reform would be an incentive for buying and selling and the legal registration of the new owners, says Maul.

Source: elperiodico.com.gt

More on this topic

Salvadorans Demand More Used Housing than New

September 2010

Since 2008, more people have applied for loans to buy pre-owned homes than for new ones.

According to data from El Salvador's Social Housing Fund (FSV), in 2006 of 1,520 registered loans, 1,169 were for a new home. In 2008 the trend changed with more mortgage applications for pre-owned houses.

El Salvador: 6.300 Housing Loans in 2011

December 2010

Out of $ 99 million in loans it is estimated that 53% will be invested in new housing.

The trend over recent years has been the purchase of used housing, according to Thomas Chévez of the Social Housing Fund (FSV).

"The balance that could be achieved regarding the trend is because in 2011 the supply of new housing, specifically of social interest, will increase due to construction projects from the program “Casa para todos,” reports the article in Laprensagrafica.com.

Guatemala: Tax Reforms in Place

March 2012

As of March 13th, the second exchange or sale of real estate will not pay VAT, just 3% stamp duty.

The Tax Update Law (Decree 10-2012), which entered into force on Tuesday 13th March, indicates that Value Added Tax (VAT) of 12% will be paid only on the first transaction of a property. Taxpayers will pay only 3% stamp duty.

Mel Gibson Sells Property in Costa Rica

March 2012

The 200 hectare residential complex on the Pacific coast, which is valued at about $30 million, includes three mountain top houses each with several bedrooms.

Actor and director Mel Gibson has put on sale his extensive mountain resort in Playa Barrigona, in northern Costa Rica near the border with Nicaragua, province of Nicoya.