Incentives & Legal Framework
What the law actually offers investors.
Three ways to structure your operation
Guatemala gives export-oriented investors three distinct legal paths to fiscal incentives: the Ley de Maquila (Decreto 29-89), the Ley de Zonas Francas (Decreto 65-89), and the newer ZDEEP special development zones. Each has its own eligibility rules, benefit schedule, and geographic scope — the right fit depends on your industry, where you locate, and how your operation is structured.
Ley de Maquila (Decreto 29-89)
The Ley de Fomento y Desarrollo de la Actividad Exportadora y de Maquila (Decreto 29-89) is Guatemala's original export-manufacturing regime. Companies authorized under this law can access a multi-year exemption from income tax (ISR) on export-related income, suspension of value-added tax (IVA) on imported raw materials and inputs used in the export process, and exoneration from import duties on machinery, equipment, and inputs. The regime has been amended over time to align with Guatemala's international trade commitments, so current eligibility and the exact benefit schedule should be confirmed with legal counsel before structuring an investment around it.
Free Trade Zones (Decreto 65-89)
The Ley de Zonas Francas (Decreto 65-89) governs companies that operate inside a government-authorized free trade zone. Zone users can qualify for an income tax (ISR) exemption for an initial period, with the possibility of extension, alongside exemption from IVA and import duties on goods, machinery, and raw materials moving through the zone for export production. As with the Maquila regime, the exact exemption schedule depends on when and how a company was authorized under the law — confirm current terms with legal counsel and the zone administrator before committing to a site.
ZDEEP — Special Public Economic Development Zones
Zonas de Desarrollo Económico Especial Público (ZDEEP) are a newer category of special economic zone designed to extend investment incentives into regions of the country beyond the traditional free-zone map, encouraging industrial development outside the capital corridor. Camantulul Industrial Park operates under this ZDEEP framework, making it one of the concrete examples of the regime already active in Guatemala's industrial corridor. Zone counts, eligibility criteria, and the exact benefit schedule under ZDEEP legislation should be confirmed with legal counsel and the relevant government authority before making investment decisions on this basis.
Frequently 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.