The initiative that seeks to modify the Law of the Single Tax on Real Estate (IUSI) is still under discussion in Congress and is scheduled for second reading this Tuesday April 28while according to deputies, they are trying to establish consensus.
In the last few hours, new statements from legislators reflect that still there is no single route defined, although they do agree that the tax needs changes.
The IUSI is the tax paid for owning property. It is collected by municipalities and finances services such as streets, lighting and water. Therefore, any change would directly impact both what the neighbor pays and the income of the communities.
There are two positions regarding the modifications of the IUSI. On the one hand, deputies who promote the reform consider that the tax has become disproportionate and unfair with the passage of time.
They argue that before was calculated on low tax values, But now, when the real value of the properties is declared – especially in financed purchases – the amount to be paid has increased considerably.
On the other hand, municipal authorities and their representatives do not completely reject the changes, but warn that any significant reduction or elimination of the tax could seriously affect the finances of the municipalities. They point out that the IUSI is an important source of income that allows financing works, infrastructure and basic services.
Read also: Reforms to the IUSI promise lower taxes, but experts warn of risks for municipal services
What changes are proposed so far?
Although the proposal is still under discussion, there are several points that coincide in the different positions.
The main idea is reduce the tax burden, lowering the maximum rate and making the charge is more proportional depending on the value of the property and the ability to pay.
One of the points proposes the reduction of the IUSI rate from 9 to 3 per thousand, which means that the property tax would be considerably lower, since it would go from being collected to Q9 for every Q1,000 of the value of the property Q3 for every Q1,000.
In practice, this would mean that many homeowners could pay around a third of what they currently pay, especially those in the highest ranks, although the Final amount will depend on the value of the property and the current charging scheme in each municipality.
It is also proposed that Those who buy their first home do not pay the IUSI, at least during the time they are financing it, to avoid a double financial burden.
Another point is that People who have already paid for many years could stop doing so, which introduces the idea that the tax is not permanent.
In addition, a benefit is contemplated for older adults, that They would be exempt from paying in their home.
New positions
The president of Congress, Luis Contreras, declared this Monday, April 27, that the issue will continue to be analyzed in a technical table and that the objective is to find a balance.
According to him, the aim is for the benefits to reach mainly Guatemalans, including support for those who acquire their first home, older adults and people who have already paid for years. “We don’t want to hit the municipalities, but we want to give the population what they deserve”he pointed out.
In contrast, the deputy Byron Rodríguez expressed a different position and stated that in the case of The ALL bench proposes completely eliminating the IUSI, in line with other congressmen.
As he explained, the idea is to replace it with new rules that would be defined in the technical table that Contreras mentioned, between mayors and deputies, authorized by Congressin order to finance works such as infrastructure, drinking water and drainage.
The IUSI collection exceeded Q1 thousand 853.7 million in 2025 at the national level, with the department of Guatemala the one that concentrates the largest part, followed by Escuintla and Sacatepequez; while at the municipal level they highlight the capital, Mixco and New Villa.
These funds are distributed primarily to municipalities — which receive the entire lowest bracket and 75% in the upper brackets — and, by law, at least 70% must go to basic services and infrastructure.
Update, but not delete
Sebastián Siero, mayor of Santa Catarina Pinula and who presides over the National Association of Municipalities of Guatemala (Anam), Sebastián Siero, assured that Although they agree with the update to the IUSI law, Since it dates back more than 25 years, he does not agree with eliminating the tax, as some deputies propose. This extreme would put the finances of the communities at risk, he assured.
“We recognize that the IUSI law deserves an update, it is a law that is more or less 25 years old and deserves to be updated. But from that to moving to populist or electoral proposals of wanting to eliminate it, there is a big difference,” he stated.
According to Siero, the changes in the IUSI payment should be focused on a specific group. “Currently, those who are being most affected are the people who comply with the law and acquire credits through the Institute for the Promotion of Insured Mortgages (FHA)since they record the real value of their properties. They are the ones who face a greater burden, so this group should be considered in an eventual update to the IUSI law,” he noted.
According to the president of Anam, An elimination of the tax would be well received by the population, but would put municipalities in difficultiessince the IUSI collection is also used to carry out works by the communes.
“Logically, among the population, eliminating taxes is going to be something well accepted. But we have to remember that the municipalities are the only ones that have managed to go out and carry out works and move Guatemala forward in recent years. So if they want to remove taxes, let them remove taxes from the Executive that is not doing anything, but do not punish the municipalities that are the ones that are really working,” he claimed.