Elimination of Inheritance Tax in Guatemala: Interview with Andrés Dougherty

Latin Counsel interviewed Andrés Dougherty, attorney at Alegalis, to discuss the scope and practical implications of Guatemala’s recent elimination of the tax on inheritances, legacies, and gifts upon death. During the interview, Dougherty examines the principal changes introduced by Decree 6-2026, their impact on succession proceedings, and the legal and practical challenges that remain in the area of estate and succession planning.

LATIN COUNSEL: What changed regarding inheritance tax in Guatemala?

Andrés Dougherty: Congress approved Decree 6-2026, through which the inheritance, legacy, and gifts upon death tax was completely eliminated, a law that had existed since 1947.
In simple terms, this means that people will no longer have to pay a tax when receiving inherited assets, such as a house, land, or other family property, without affecting other taxes that may apply in specific cases.

LATIN COUNSEL: Why is this reform important?

Andrés Dougherty: Because many families inherited assets but did not have the funds necessary to pay the corresponding tax.

In many cases, this caused delays, penalties, or even forced families to sell part of their estate in order to comply with payment obligations.
With this reform, an economic burden that complicated inheritance proceedings for many people is eliminated.

LATIN COUNSEL: Which assets benefit most from this change?

Andrés Dougherty: Primarily real estate assets, such as:
• houses,
• apartments,
• land,
• farms,
• commercial premises.

In Guatemala, a large portion of family wealth is concentrated in real estate, so this measure considerably facilitates succession proceedings.

LATIN COUNSEL: Does the reform apply only to new cases?

Andrés Dougherty: No. It also benefits proceedings that were already underway.
The law establishes that inheritance and testamentary transfer proceedings that were still pending tax assessment may continue without the need to pay this tax.

LATIN COUNSEL: So it will no longer be necessary to carry out procedures before the Ministry of Finance to pay the tax?
Andrés Dougherty: Correct. One of the most important changes is that it will no longer be necessary to obtain a tax assessment or make payments before the tax administration in order to register inherited assets.

This makes procedures faster and simpler both for families and for the professionals involved in the process.

LATIN COUNSEL: Does this mean that inheriting will now be completely free?

Andrés Dougherty: Not necessarily.
Although the inheritance tax has been eliminated, there are still ordinary expenses associated with any succession proceeding, for example:
• notarial fees,
• publications,
• appraisals,
• registry expenses,
• and other administrative costs.

What has specifically been eliminated is the tax previously imposed on inherited assets.

LATIN COUNSEL: Why was it decided to eliminate this tax?

Andrés Dougherty: According to the Decree itself, Congress considered that it was an outdated tax, difficult to administer, and one that generated little revenue compared to the problems it created for families.

Additionally, receiving a valuable asset does not necessarily mean that the beneficiary has sufficient liquidity to immediately pay a tax.

Inheriting a high-value asset may increase a person’s estate, but it does not necessarily provide the liquidity required to satisfy the corresponding tax obligation.

LATIN COUNSEL: Will this reform help speed up inheritance proceedings?

Andrés Dougherty: Yes, definitely.
Previously, many proceedings were delayed due to tax-related issues associated with payment obligations.

Now, judges, notaries, and registries will be able to move forward directly with succession procedures without waiting for tax clearances.

LATIN COUNSEL: Is there debate surrounding this decision?

Andrés Dougherty: Yes. As with many tax reforms, opinions are divided.
Some people believe that eliminating this tax mainly benefits higher-net-worth individuals and families.
Others consider that it was an unfair tax, since it imposed an additional burden on assets that had often already been taxed previously.

Additionally, some specialists point out that this measure goes against current international trends, where many countries are expanding or strengthening inheritance and wealth taxation.

LATIN COUNSEL: If you had to summarize this reform in a single sentence, how could it be described?

Andrés Dougherty: It is a reform aimed at facilitating inheritance proceedings and preventing families from having to go into debt or sell part of their estate solely in order to receive inherited assets.

LATIN COUNSEL: Does the elimination of the tax mean that it is no longer necessary to plan family wealth?

Andrés Dougherty: No. Although the elimination of the tax represents an important change, proper estate and succession planning remains essential.

Properly structuring family assets helps to:
• prevent conflicts among heirs,
• facilitate asset management,
• protect family businesses and investments,
• and reduce future legal complications and delays.

Good planning is not carried out solely for tax reasons. It also provides order, certainty, and long-term security for families and future generations.

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