Laws of Interest in Guatemala

Outline of laws relatred to investment in Guatemala.

   
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Laws of Interest in Guatemalata

Drawback Industries Law

The Drawback Industries Law (Ley de Maquila, Decree 29-89) basically provides for the following benefits:

  • Exemption of customs duties on machinery, equipment, raw materials and spare parts.  %

  • Exemption of VAT on imports.

  • 10-Excemption on income tax.

Free Trade Zones Law

The Free Trade Zones Law, basically provides for the following benefits:

  • Exemption of income tax for five years for commercial activities.

  • Exemption of income tax for ten years for industries and the rendering of services.

  • Exemption of VAT on operations inside and between free zones.

Law of the Industrial Free Zone of Santo Tomás de Castilla-ZOLIC

The Industrial Free Zone of Santo Tomás de Castilla-ZOLIC, basically provides for the following benefits:

  • Exemption of import taxes

  • Exemption of VAT on imports

  • Exemption of income taxes for ten years  

Retired Residents Law

The Retired Residents Law, basically provides for the following benefits:

  • Retirees are exempted from duties on household goods, furniture and equipment imported during the first year of residency.

  • Retirees are exempted of income tax and any other tax on income received from foreign sources. One vehicle may be imported duty free.  

Banking System

Everything related to the circulation of money and public debt (banking and financial institutions) is organized under the Central Banking System  being ruled by the Monetary Board (Junta Monetaria) and the Central Bank (Banco de Guatemala)

 

Free Currency Negotiation

According to the Free Currency Negotiation Lay, bank deposits in foreign countries, as well any kind of local negotiations in foreign currency are permitted.

Labor Law 

  • Labor Law is ruled by the Labor Code, being considered a tutelary right of the employees. It guarantees individual contracting, and employment agreements.  

  • Foreign Employees. Total of foreign employees, cannot exceed 90% of Guatemalans, nor exceed 85% of salaries paid. Directors and officials are exempted from this rule.  

Import Duties and Customs System 

The Central American Common Market (Mercado Común Centroamericano) establishes a common market and customs union between Guatemala and the other Central American countries, in order to avoid disloyal commercial practices. Duties are imposed on imports (both, specific and ad valorem) also a 12% Value Added Tax (IVA) is imposed on imports.

Intellectual Property

Intellectual property is protected by the Copyright Law (Ley de Protección Intelectual) and the Industrial Property Law (Ley de Protección Industrial