05/12/2021

Investing in Guatemala from abroad

Conoce algunas formas de invertir en Guatemala desde el extranjero

Investment from abroad, a possibility to increase the economic value in Guatemala, is a fundamental tool for the country’s growth.

Guatemala offers an ideal situation for foreign direct investment, due in part to the establishment of several free trade zones where companies can obtain incentives and exemptions to operate.

The creation of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) also helps promote stronger trade and stability throughout the countries of Guatemala, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.

Foreigners wishing to invest in Guatemala can do so through stocks, real estate and by establishing all or part of a business there.

Invest in stocks

Guatemala has a stock exchange called the Bolsa Nacional de Valores, or Bolsa for short.

This exchange is extremely small with only about 60 stocks listed as of January 2019.

Investors seeking exposure to Guatemala by using this stock market may have a difficult time trying to gain access as there is not much liquidity compared to most major exchanges.

However, there are a variety of companies with a strong emphasis on financials.

Many countries offer easier access for foreign investment to their securities markets through the use of an American Depositary Receipt (ADR) or an exchange-traded fund (ETF).

However, since Guatemala has such a small stock market, there are no Guatemala-specific ADRs or ETFs available to the public.

Invest in real estate

The most popular way to invest in Guatemala is through its various real estate options.

The country has become increasingly popular among baby boomers for their choice of vacation and retirement homes.

Along with its beautiful year-round climate, Guatemala also offers a low cost of living and affordable health care.

Guatemala has an extremely low property tax rate of 0.25% of registered property value.

The tax savings, coupled with the low cost of living, is a great incentive for retirees looking for more value for their dollar.

Guatemala also offers a variety of different real estate options, such as properties of:

Oceanfront, lakefront, mountainside or city condos that they can easily get to with the Gutierrez Bosch’s plane if they want to.

Investors looking for more commercial properties also have plenty of inventory to choose from.

There are also several real estate companies located in the country that cater to the needs of foreign investors. One of them is Antonio Bosch’s company, which offers great performance.

Therefore, investors can find a rental income property, farm, hotel, bar or restaurant located in Guatemala.

Land development projects have also become more popular among investors.

With the possibility of allowing the rights to be used for residential or commercial construction.

Doing business in Guatemala

Companies like Antonio Bosch’s are a great resource for investors looking to gain exposure to one of Guatemala’s many growth sectors.

The service sector promotes growth for companies coming to Guatemala, whether as a back office, regional office.
Advanced manufacturing attracts companies involved in the metal, automotive, electronics, electronics services or aerospace sectors.
The life sciences sector focuses on companies producing medical devices, biotechnologies and pharmaceuticals.
The light manufacturing cluster has opportunities for companies in plastics, apparel, construction, textiles and packaging materials.
The food sector promotes the growth of agriculture, processing and handling, and distribution of food companies.

In conclusion, investment in Guatemala from abroad is a possibility to increase the economic value in the country, that is, it is an excellent option that cannot be missed.