FAQ

Frequently Asked Questions

PROPERTIES FOR RENT

None. Our service is free for the tenant and the commission is paid by the owner.
A short-term rental is from 1 night to 1 month. This rent can be extended month by month. A long-term rental income is 6 months and up.
Yes, it is necessary to sign a lease for any rent. The contract stipulates all conditions of term, monthly rent, payment of services, rights and obligations of both parties. The contract fees are paid by the tenant.
In addition to the contract fees, you must pay in advance the first rent plus a deposit equal to the first month of rent.
The cost of the contract depends on the term and the amount of the monthly rent. You can request an exact quote with our rental department.
The services of electricity, water, cable T.V. and Internet and others, are usually included in the short-term rental. In long term rentals, the client will pay them according to consumption.
It is not necessary that the services are in the name of the tenant. Generally they remain in the name of the owner and the lease agreement stipulates who should pay them.
You must complete a rental application with personal data and provide personal and commercial references that will be verified in the credit bureau. In some cases, a guarantor will be required who also signs the lease and guarantees the rent.
In the case of a foreigner who is less than 1 year old living in Guatemala and does not have a guarantor, he must pay the equivalent of two security deposits.
Depending on the rental period, a penalty percentage is applied for each month of non-compliance.
The security deposit is guarded by the owner. The deposit is returned at the end of the contract and all monthly rents are canceled, there are no outstanding service balances (depending on the term) and there is no damage to the property. If there are balances, they will be deducted from the security deposit.
In Antigua Guatemala there are specific areas where you can open a trade depending on the type of business so a municipal permit is required to operate.
All permits must be processed by the tenant and our rental department can provide all the necessary documentation to expedite the process.
PROPERTIES PURCHASED
None. Our service is free for the tenant and the commission is paid by the owner.
Absolutely. Every foreigner has the same rights and obligations as a Guatemalan.
Financing in Guatemala for foreigners is possible, although the requirements are quite extensive and the bank may even require a Guatemalan guarantor to guarantee the loan. The normal conditions you can expect are: Engagement between 20% and 30% of the total, maximum term of 25 years, variable annual interest between 7% and 8%.
The Property Registry is the only entity that can guarantee the authenticity of real estate and you must hire a lawyer to be in charge of the verification process and to register the property in your name. Our sales department has online access to the Property Registry to verify all the history and assists you throughout the process for your peace of mind.
All properties must be duly registered in the Land Registry. Some properties have another type of rights that do not have the same legal certainty. Additionally, some properties that are adjacent to a body of water, such as lakes and beachfront properties, are generally owned by the government of Guatemala, who leases the properties through 30-year renewable contracts, through O.C.R.E.T. (Office of State Territorial Reserve Control)
Once you find the ideal property, you must submit a purchase proposal for the owner's consideration. This proposal or offer must be submitted in writing stipulating the conditions of purchase. Our Sales Department can provide you with the offer format that must include: Value of the offer, payment method and special conditions. The owner will also respond in writing to the offer. At the time of reaching an agreement, the business must be formalized through a legal contract in front of a lawyer.
At the time of buying a property you must pay the legal fees of your lawyer and the registration costs that are generated. Additionally, you must pay I.V.A. (Value added tax), which is paid only once when buying. The percentage of this tax varies between 3% and 12% of the purchase value and depends on whether it is a first purchase or re-sale. For more detailed information, you can contact our department or read our article "The purchase process".
For properties there is only one type of tax called I.U.S.I. (Single tax on real estate) and the percentage of tax corresponds to 0.9% of the registration value in the municipality of the place where you acquire your property.
The option to rent with option to purchase is feasible. This option allows you to set the purchase price today to a specific term, paying the rents paid as part of the purchase. To carry out this option, you must sign a contract at the beginning and pay an amount that will remain as part of payment or penalty if you do not buy at the end of the agreed period.
Absolutely. The recommendation is that a specialist can verify the state of the property even before presenting the offer. In this way, you can determine the cost of any possible repairs that you have to make after acquiring it. The cost of the inspection is borne by the buyer.