Last modification: 11 Nov 22

Guatemala is composed of 22 departments. They are Alta Verapaz, Baja Verapaz, Chimaltenango, Chiquimula, El Progreso, Escuintla, Guatemala, Huehuetenango, Izabal, Jalapa, Jutiapa, Peten, Quetzaltenango, Quiche, Retalhuleu, Sacatepequez, San Marcos, Santa Rosa, Solola, Suchitepequez, Totonicapan, and Zacapa.

The vast majority of the populace resides in the southern half of the country, particularly in the mountainous regions; more than half of the population lives in rural areas.


Thank you contributors of the Guatemala WikiFleet page:
BDO, ALD Automotive, Wheels Inc., Arrend Leasing

Chapter 1: Economic and business environment


18.7 million people (2022)

source: Worldometers

Guatemala is a predominantly poor country with a large indigenous population which is disproportionately affected. It is the most populous country in Central America and has the highest fertility rate in Latin America.

It also has the highest population growth rate in Latin America, which is likely to continue because of its large reproductive-age population and high birth rate. Almost half of Guatemala's population is under age 19, making it the youngest population in Latin America.



Guatemala City (population of 995,393 in 2018)

Major cities

1. Guatemala City 995,393 
2. Villa Nueva  618,397
3. Mixco 465,773 
4. Quatzaltenango 180,706 
5. San Miguel Petapa 135,447 

from 2018 data


Spanish (official) 68.9%, Maya languages 30.9%


US$86 billion (2021, up 11% year-over-year
US$4,600 per capita (non adjusted)

Unemployment rate

2.2% (2021)

Source: Trading Econommics

Main industries

sugar, textiles and clothing, furniture, chemicals, petroleum, metals, rubber, tourism

sugarcane, corn, bananas, coffee, beans, cardamom; cattle, sheep, pigs, chickens


 Guatemalan Quetzal (GTQ)

Interest rate

benchmark interest rate 3% (October 2022)

Source: Trading Economics

Political key info

Alejandro Eduardo Giammattei Falla is the President of Guatemala. He won in the 2019 election and assumed office on January 14, 2020.


9.7% (October 2022)

Source: Trading Economics

Chapter 2 : Automotive market, segments & sales

Total Car park

In 2020, just over four million vehicles were in the country 
ne vehicle per 4.4 inhabitants or one passenger car per 12 inhabintants

  • motorcycles (1.7 million)
  • passenger cars, trucks and SUVs (1.5 million) 
  • LCVs, including trucks, vans etc. (540,000)
  • cargo trucks (172,000)
  • buses (117,000)

The rest are carts, trailers, tow-trucks, tractors, etc.

source: Statista

New vehicle registrations (Cars, LCV, Trucks)

23,856 passenger vehicles were sold, down 3.5% year-over-year 

1Q21 (6,813 units, up 9.9% y-o-y)
2Q21 (8,080 units, up 70.8% y-o-y)
recovering returning in 2H21

source: focus2move

Top 5 brands (total market)

In 2020, leading brands included Toyota, Kia, and Hyundai.
In 2021 YTD August, they were Toyota (26% market share), Hyundai and Chevrolet

Dealer network (including fleet dealer network)

Dealerships in Guatemala are mainly dominated by brands from Asia. Some of the most succesful are Cofiño Stahl y Cìa (Toyota) and Auto Kia. Honda also opened up its largest dealership in the world in the country, with a grand opening in late 2019.

Chapter 3: Company car market

Total Fleet Park (company cars)/Fleet penetration in total fleet sales

Considering an average of just over 3% of total vehicle park over the years (6% of passenger car and LCV park), 2020 should have a fleet park of some 120,000 vehicles.

Gasoline dominates the industry with more than 85% market share, followed by Diesel and then other power trians such as EVs (1%).  

Evolution fleet sales (last 5 years)

Approximately 11,000 units per year in the 2017-2020 period.
2015 and 2016 were a bit better at some 13,000 units.

source: OICA

Top 5 fleet brands (fleet market)

Highly dominated by brands from Asia such as Toyota, Hyundai, Kia, Nissan, and Isuzu.

Premium Market players include BMW, Audi, Mercedes Benz, Land Rover, and Porsche.

Chapter 4: Taxation & legislation



The basis of company car taxation in Guatemala is reflected in this overview. Different types of taxes are considered here: taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are also briefly listed, if any.



La base de los impuestos a los automóviles de las empresas en Guatemala se refleja en este resumen. Aquí se consideran diferentes tipos de impuestos: impuestos relacionados con el registro del vehículo, impuestos sobre la renta y aspectos del IVA. Los desarrollos futuros esperados también se enumeran brevemente, si corresponde.


1. Car taxation

1.1. Registration tax


Taxable event






Taxable person




Tax due





Taxable period


Vehicle registration tax rates depend on the type of vehicle, attached file ANNEX I that contains the different tax rates for each type of vehicle.


Determination of the tax base:


The tax base for the Specific Tax on the First Registration of Land Motor Vehicles for use is the value recorded in the original invoice issued by the seller of the vehicle abroad, which complies with the requirements established by law. the country of issue and that the authenticity of said invoice can be verified by the Tax Administration, in addition to presenting the title of ownership of the vehicle issued by the competent authority of the country from which it is exported and documenting the payment of the invoiced value, by the means made available by the national and international banking system.


In the case of not complying with what is required in the previous paragraph, the taxable base will be the value of the vehicle that appears in the table of taxable values ​​that the Superintendence of Tax Administration must prepare annually (ANNEX II attached), which must be approved by the Board of Directors, Superintendence and published in the official newspaper and on the website of the Tax Administration, in the month of November of each year.


For new land vehicles, assembled or manufactured abroad, the tax base is the import value defined as the addition of insurance and freight to the value of the vehicle, reported by manufacturers or importers.


In the case of new land vehicles, assembled or manufactured in Guatemala, the tax base is the value of the vehicle consigned in the invoice issued by the assembler or the manufacturer.


The model year of the land vehicles, will be determined by verification of the Vehicle Identification Number (VIN), which must physically consist of vehicles entering the national territory and exactly match the import documents



1.2. Annual circulation tax

Taxable event


Taxable person


Tax due



Taxable period

The annual vehicle circulation tax depends on the type of vehicle and its characteristics, for reference the attached file ANNEX II contains the detail of the types of vehicles, their characteristics and the tax that corresponds to them.

2. Income taxes

The Law establishes two forms of payment of Income Tax, taxpayers can register with the Tax Administration in one of the following two methods:


1. Regime on Profits of Lucrative Activities of 25%

2. Regime on Income from Lucrative Activities of 5% to 7%, depends on the amount of gross income that you obtain monthly.



3. VAT

3.1. Hire purchase

ü 12% on the purchase price.


3.2. Leasing

ü 12% on the value of the lease.


4. Company car

4.1. VAT due on private use of company cars

ü 12%

5. Income taxes – drivers’ personal taxation

If a person is engaged in the business of buying and selling vehicles or providing taxi services, the income tax that must be paid depends on the tax regime in which it is recorded:


1. Regime on Profits of Lucrative Activities of 25%

2. Regime on Income from Lucrative Activities of 5% to 7%, depends on the amount of gross income that you obtain monthly.


The personal use of vehicles does not have tax benefits, only fiscal obligations.


6. Electric vehicles

For the importation of electric vehicles: 12% Value Added Tax and 5% First Registration Tax.





Source: BDO 

Chapter 5: Car policies

First of all, to drive in Guatemala, foreign visitors must have a full driver license valid in their countries of residence. Foreign driver licenses are accepted for the first 30 days. It is recommended to have an International driving permit as International driving permits are accepted for longer stays. To rent a car in Guatemala, each driver must be at least 25 years old and have one year of driving experience. Driving is on the right hand side of the road.

·        The minimum driving age is 18 years.

·        Seat belts when driving are mandatory.

·        The use of a mobile phone while driving is prohibited, the exception is cell phones with a hands-free systems.

·        Turning right on red is not permitted.

·        Drivers must yield when entering a traffic circle.

·        The permitted blood alcohol level is 0.08%.


Chapter 6: Funding methods

Financing is more common for the "B" or "C" segments as those acquiring premium cars commongly buy them outright or opt for more sophisticated tools such as leasing (sometimes with an option to buy). The latter is also common for those acquiring fleets for companies.

Characteristics of financing

· New vehicle terms: 12-72 months
· Used vehicle terms: 12-60 months
· New vehicles: 8.6%/y variable interest rate when financing in Guatemalan quetzales.

· New vehicles: 7.25%/y variable interest rate when financing in US dollars.
· Used vehicles: 12.6-16.6%/y variable interest rate when financing in quetzales.
· Used vehicles: 9%/y variable interest rate when financing in US dollars

There is a lot of red tape stemming from the Motor Vehicle Importers and Distributors Association (AIDVA) so keep in mind that it may be difficult to acquire financing for some.

Requirements - Individuals
· Payment plan (including financing)
· Debtor's credit application and IR Form
· Proof of recent income on letterhead
· Full and legible photocopy of personal ID
· Legible photocopy of the NIT (RTU) tax registration card
· Photocopy of a water, electricity or telephone bill
· Photocopy of License (If you are an Individual merchant)
· Photocopy of Active Collegiate Card (For Professionals)

Requirements - Companies

· Payment plan (including financing)
· Company credit application
· Financial Statements from the two most recent fiscal periods, signed by Legal Representative and Accountant.
· Account statements from the last 3 months (If you are not a BI Account Holder)
· Trade License
· Business License
· Full photocopy the Legal Representative’s personal ID
· Photocopy of incorporation certificate
· Photocopy of legal representative

Requirements - Legal Representative
· Copy of the NIT tax registration card of the company
· Copy of the latest Water, Electricity or Telephone bill
· Form IVE-IR-02 for Legal Entity

Chapter 7: Fuel

November 7, 2022
Average gasoline price per liter: US$1.21 (world average is US$1.31)
Average diesel price per liter: US$1.32 (world average is US$1.32)

March 1, 2022
Average electricity price per kWh Households: US$0.26 (world average is US$0.14)
Average electricity price per kWh Business: US$0.16 (world average is US$0.14)


Chapter 8 : TCO components

As Guatemala and some of its Central American neighbors (El Salvador, Honduras) have some of the worst vehicle accidents rates in Latin America, implementing driver training and making sure your cars are in top shape are key to controlling TCO.  

Chapter 9: Safety, insurance and telematics


Balancing safety with other factors is key in selecting your fleet vehicles and one assessment tool to use in Guatemala as well as most of Latin America is regional car safety assessment program Latin NCAP. Founded in 2010, Latin NCAP is one of the latest additions to the NCAP family. The original NCAP (new car assessment program) was established in 1978 in Washington DC.

Meanwhile, the lack of security when using public transportation in Guatemala and surrounding countries actually makes buying a car a necessary investment in order to assure personal safety in many cities, according to Arrend Leasing CEO and Global Fleet Latin America advisory board member Mirella Juarez.


A vast majority of cars in Guatemala are not insured. Following a 2013 study showing that only about 14% of the vehicles in the country were insured beyond obligatory coverage, Spain-based insurance company Mapfre launched an insurance policy for 2009-14 vehicles aimed at filling the gaps in insurance coverage.  


Despite Guatemala's total car park being one of the oldest in the region, its corporate car fleets remain quite new, some of which use telematics primarily for improving operational efficiency and to maintain safety.  

Chapter 10: Environment

Although importing vehicles more than 10 years old is not permitted, it is not really enforced. As such, a gas emission regulation is urgently needed to help prevent the entry of vehicles coming from the United States which are considered scrap metal or banned due to their high levels of pollution.

Electric Vehicles

Several full-electric motorcycles, cars, and cargo vehicles are offered in the country. However, according to data from the tax administration office SAT, electric vehicles represent less than 2% of Guatemala’s total car park.

Among the established brands in the local market are France’s Renault, China’s Luka, and smaller companies such as Volta and Grupo Cormosa.


Chapter 11: Mobility

The most common mobility options in Guatemala City are bus, the six-line Transmetro system, taxi, and Uber.


Bus: 1.20 quetzeles
Transmetro: 2 quetzeles
Taxi: 5 quetzeles + 5 quetzels per kilometer
Uber: 5.25 quetzales + 2.30 per kilometer (Uber pool available for those wanting to save mone

Among the other options available are inDrive where the commuter suggests the price he or she wants to pay for a ride, VIT which is a network of various taxi services, Urban Park Pink which offers rides only for women, and bike sharing systems.

Chapter 12: Key trends to watch