Guatemala's cost of living is affordable, with a CPI of 44.1 (NYC = 100). Groceries (52.0) and restaurants (40.9) are relatively inexpensive.

The property price to income ratio in Guatemala is 14.5 years, indicating an expensive housing market for buyers. However, the rent index is significantly lower at 17.9, suggesting renting is more affordable.

Guatemala has a low average income, with a purchasing power index of 37.5 (NYC = 100). This indicates significantly lower buying power compared to New York City.

Guatemala operates a territorial tax system. Resident income tax rates are progressive (5-7%), while non-residents face a flat 15%. The standard VAT is 12%, and property taxes range from 0.2% to 0.9% of cadastral value. Capital gains are taxed at 10%.

Guatemala ranks 96th in ease of doing business (2019) and 63rd in economic freedom (2024). It shows high early-stage entrepreneurial activity (32.4%) and a growing startup ecosystem, particularly in Guatemala City. However, institutional weaknesses and perceived corruption remain challenges.

Guatemala's public healthcare system is underfunded, leading most expats to rely on private facilities. The social security system (IGSS) provides limited pension and health coverage primarily to the formal sector, with a large informal economy remaining unprotected. There is no comprehensive unemployment insurance program.

Guatemala's banking system is stable, with low non-performing loans (2.4% as of February 2025) and strong oversight by the Banking Superintendence (SIB). The country adheres to international financial regulations, including anti-money laundering frameworks. While a deposit insurance scheme (FOPA) exists, a current, specific coverage limit in USD is not readily available from recent sources.