The Congress of the Republic approved this Wednesday July 29 article 1 of the reforms to the Single Property Tax Law (IUSI), during the discussion by articles. Among the changes is the elimination of this tax for properties intended for housing and the maintenance of the tax rate. 9 per thousand for properties for commercial use, legislative sources reported.
Through a privileged motion, the initiative to reform the IUSI Law was known by the plenary session, despite the fact that the session’s agenda included several initiatives.
The regulations, converted into Decree 18-2026, eliminate the collection of IUSI for properties intended for housing, residential and mixed use. For properties for commercial use, establishes a differentiated rate according to the registered value of the property, with rates of 3, 6 and 9 per thousandas follows:
- Of Q0 to Q500,000, 3 per thousand.
- Of Q500,000.01 to Q1,000,000, 6 per thousand.
- Of Q1,000,000.01 onwards, 9 per thousand.
The decree containing the reforms will be sent to the Executive Branch for its sanction and subsequent publication in the official gazette, in order for it to come into force.
Some deputies justified their interest in reforming the IUSI Law because, according to their criteria, the tax is based on the ownership of the property and not on the real economic capacity of the taxpayer, it presumes that all owners can pay, without evaluating their economic situation, it applies the same charge to different cases, which could generate inequality, and because it can affect essential goods, such as housing, if the taxpayer’s situation is not considered.
Contrary positions
The debate also generated conflicting positions between deputies and mayors. While some sectors considered it necessary to review the collection model to alleviate the tax burden, municipal authorities warned that a drastic reduction or elimination of the IUSI would directly affect the income allocated to services, infrastructure and the operation of the communes.
The National Association of Municipalities (Anam) stated that, although the law needs to be updated after more than 25 years in force, eliminating the tax could compromise municipal finances.
ANAM is pronounced
The National Association of Municipalities (ANAM) stated that it recognizes the need to update the Law of the Single Tax on Real Estate (IUSI), in force for almost 30 years. However, he expressed his concern about the approval of Decree 18-2026, considering that it modifies the legislation without consensus with the municipalities and puts the finances of the 277 municipalities that receive income from this tax at risk.
The entity indicated, through a statement, that the resources from the IUSI finance municipal services and works, including the maintenance of drinking water, drainage, sidewalks and roads, in addition to the payment of personnel in areas such as education, health and cleaning. According to ANAM, a reduction in this income would compromise the continuity of programs and projects that directly impact the population.
Likewise, he maintained that municipal autonomy depends on having its own resources and that the IUSI has contributed to strengthening the financial independence of local governments. He added that the municipalities with the greatest investment in public works are also those where there is a greater culture of tax payment and better levels of economic development.
Given this scenario, ANAM called on the Congress of the Republic to set up a working group with the participation of municipalities, with the aim of discussing a financing model that guarantees sufficient resources for local governments without putting at risk the provision of public services or the development of communities.
With information from Sandy Pineda
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The Congress of the Republic approved article 1 of the reforms to the Law of the Single Tax on Real Estate (IUSI) during the discussion by articles, among them the provision that eliminates the tax for properties intended for housing and maintains the rate of 9 per thousand… pic.twitter.com/p6FDYD6h5T
— Oscar Vásquez Mijangos (@oa_vasquezz) July 29, 2026
During the discussion of the reforms to the IUSI Law, members of @RaicesGL They proposed an amendment so that deputies and mayors would pay a rate of 12 per thousand on the tax, regardless of the value of their properties.
The proposal was submitted for consideration… pic.twitter.com/JZtEowOeoi
— Oscar Vásquez Mijangos (@oa_vasquezz) July 29, 2026