Incentives
Free trade zones & international agreements
Competitive tax regimes and preferential access to international markets for investors setting up operations in Guatemala.
3 Main Regimes
Investment Incentives
Export and Maquila Activity Promotion and Development Law (1989)
Promotes the production of exportable goods and services outside Central America.
Sectors: apparel, textiles and services.
- Income tax exemption for 10 years.
- Other strategic tax incentives.
- Productive linkages with regional impact.
Free Zones Law (1989, amended 2021)
Strengthens foreign trade and attracts FDI through specialized operating zones.
- Income tax exemption for 10 years.
- Property tax exemption for 5 years.
- Tax exemption on machinery, equipment and infrastructure inputs.
- Tax exemption on fossil fuels used to generate electricity.
ZDEEP: Public Special Economic Development Zone
Special free zone category with no restrictions on economic activities.
Activities: manufacturing, assembly, packaging, distribution and storage, among others.
- 100% income tax exemption for 10 years, including dividends.
- VAT and tariff suspension while products remain within the zone.
- Additional local government incentives for priority projects.
Free Trade Network
13 treaties provide preferential access to more than 40 countries.
CAFTA-DR
Free trade agreement between the Dominican Republic, Central America and the United States.
- 100% of industrial products are free of tariffs and quotas.
- 200 international and national companies have benefited.
- Direct access to the world's largest market.
Mexico–Central America FTA
Single Free Trade Agreement between Mexico and Central America.
- 01Reduction or elimination of intraregional tariffs.
- 02Integration of regional supply chains.
- 03Access to key industries such as automotive and electronics.
Guatemala–Taiwan FTA
Free Trade Agreement between Guatemala and the Republic of China.
- Potential market of 23.4 million consumers.
- Platform to access CAFTA-DR markets, including the United States.
- Tariff incentives for industrial products.
Sources: PRONACOM · Ministry of Economy of Guatemala · INTERNATIONAL Guatemala No Se Detiene
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View Investment OpportunitiesFrequently asked questions
Do I need to be in a free trade zone to get these benefits?
No. Guatemala's Ley de Maquila (Decreto 29-89) lets qualifying export manufacturers access fiscal incentives without being physically located inside a designated free trade zone. Benefits under the Ley de Zonas Francas (Decreto 65-89) and the ZDEEP framework, by contrast, require operating from within an authorized zone. Which regime fits your operation depends on your industry, location, and export profile — worth confirming with legal counsel early in site selection.
How long do the tax exemptions last?
Exemption periods vary by regime and have been adjusted over time as Guatemala's incentive laws were updated to align with the country's international trade commitments. Rather than quote a single figure here, we recommend confirming the current exemption schedule for your specific regime and authorization date with legal counsel — Why Guatemala's investment team can make the introduction.