US-Guatemala tax obligations

If you’re a Guatemalan citizen living in the US or US citizen with assets in Guatemala, you have cross-border tax obligations with two systems: US IRS and Guatemala tax authority. This guide covers main points.

Official IRS tax treaty status — verified data

Official source: IRS — US Income Tax Treaties A-Z

Verified on: 2026-05-25

❌ Guatemala does NOT have a tax treaty with the US (verified against IRS on 2026-05-25).

NOT on IRS treaty list

Latin American countries with US tax treaty

Only 3 Latin American countries have a tax treaty with the US (IRS data 2026):

  • Chile (signed 2010; entered into force December 19, 2023 — US Treasury; effective for withholding at source from February 1, 2024)
  • Mexico (signed 1992, amended 2002)
  • Venezuela (signed 1999)

Without treaty: what happens

If Guatemala has NO tax treaty:

  • Guatemala income is subject to US tax if you’re a US tax resident
  • NO reduced withholding rates on dividends/interest
  • Can claim Foreign Tax Credit (Form 1116) to avoid double taxation

Your Guatemala tax ID

In Guatemala, the tax ID is called Guatemala NIT (Tax ID Number). If you worked or had income in Guatemala, you should have one.

Your US tax ID

  • If you have SSN: use it
  • If you don’t have SSN: you need ITIN from IRS — see ITIN complete guide
  • ITIN allows fulfilling US tax obligations without work authorization

⚠️ NO US-Guatemala tax treaty

The US and Guatemala do NOT have a bilateral tax treaty. This means:

  • 30% withholding on most US passive income paid to Guatemalan non-residents (dividends, royalties, rents, and interest — though interest on US bank deposits is generally exempt)
  • NO automatic treaty reduction
  • Possible double taxation: paying Guatemalan tax authority on US-source income + IRS on same income
  • US Tax Credit (Form 1116) available for credits for taxes paid to Guatemala (mitigates but doesn’t eliminate)

FBAR (FinCEN 114) — accounts in Guatemala

If you’re a “US Person” (US citizen, permanent resident, or tax resident via Substantial Presence) and have bank accounts in Guatemala whose combined balances exceeded $10,000 USD at any point in the year, you MUST file FBAR (FinCEN Form 114) annually.

  • Deadline: April 15 (automatic extension to October 15)
  • Cost: FREE (electronic via bsaefiling.fincen.gov)
  • Penalties: $10,000-$100,000+ for non-filing

See: FBAR complete guide

FATCA (Form 8938) — assets in Guatemala

If your Guatemala financial assets (bank accounts, stocks, funds) exceed FATCA thresholds, you must file Form 8938 with your federal IRS return.

Thresholds (US Persons living in the US) — each has TWO prongs, and hitting either one triggers the form (IRS, Summary of FATCA reporting for U.S. taxpayers):

  • Single / married filing separately: more than $50,000 on the last day of the tax year, OR more than $75,000 at any time during the year
  • Married filing jointly: more than $100,000 on the last day of the tax year, OR more than $150,000 at any time during the year
  • If you live abroad, the thresholds are much higher: $200,000 / $300,000 single, $400,000 / $600,000 married filing jointly

The any-time-during-the-year prong is the one people miss: a balance that peaked at $80,000 in July and sat at $40,000 on December 31 still requires Form 8938.

See: FATCA complete guide

US + Guatemala dual nationality

Guatemala allows dual nationality with US. If you naturalize as US citizen, you keep Guatemalan nationality (verify Guatemala’s current rules).

Dual nationality tax implications:

  • You still owe US tax on worldwide income (the US taxes its citizens on worldwide income)
  • You may also owe tax in Guatemala on income generated in Guatemala
  • The US foreign tax credit (Form 1116) can reduce double taxation on income that Guatemala also taxes

Currency and conversion

Guatemala: GTQ (Quetzal). When reporting Guatemalan income to the IRS, convert it to US dollars, generally at the exchange rate prevailing when you receive, pay or accrue the item; the IRS has no official exchange rate and generally accepts any posted exchange rate used consistently.

If you have a business (Self-Employment / Independent Contractor)

If you live in US with ITIN and have freelance/business income:

  • Schedule C (business profit/loss)
  • Schedule SE (Self-Employment Tax 15.3%)
  • 1099-NEC from your US clients
  • FEIE does NOT apply (you’re IN the US, not abroad)

See: Filing taxes with ITIN

Official source: IRS International Taxpayers · FinCEN FBAR

Cross-border tax obligations are complex — consult a CPA or tax attorney with international experience.

Last verified: 2026-09-24.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.