Can a Guatemalan company hire a foreign worker?

Yes, but it must satisfy two parallel requirements: (1) the company must apply for and obtain the work permit from the Ministry of Labor and Social Welfare (MINTRAB) under Government Agreement 528, and (2) the foreign worker must have regular residency in Guatemala issued by the Guatemalan Migration Institute (IGM). Additionally, the company must comply with Article 13 of the Labor Code: at least 90% of the payroll headcount must be Guatemalan and at least 85% of total wages paid must go to national workers.

What is the 90/10 rule under the Labor Code?

Article 13 of the Labor Code establishes that every company with workers in Guatemala must employ at least 90% Guatemalan nationals on its payroll. Additionally, the amount paid to Guatemalan workers must represent at least 85% of total wages. Limited exceptions exist for specialized technical or management positions that cannot be filled by national personnel, which must be formally justified to MINTRAB. Companies with fewer than 10 workers have practical flexibility in how the rule is applied.

How much does a work permit for a foreigner in Guatemala cost?

The main cost is the mandatory Q. 3,000.00 training fee per work-permit application, which is allocated to training programs for Guatemalan workers. Smaller administrative fees also apply. Total estimated cost (including apostille of foreign documents, sworn translations and professional fees if outside counsel is retained) usually ranges between Q. 5,000 and Q. 15,000 depending on the worker's country of origin and case complexity.

How long does it take to obtain a work permit?

MINTRAB processing takes between 2 and 4 weeks once the file is complete and correct. MINTRAB has 5 business days to review the dossier and request corrections. However, total elapsed time may extend to 6-12 weeks once you factor in: apostille and translation of documents in the country of origin (2-4 weeks), residency processing before IGM (additional 4-8 weeks) and any corrections.

Does the foreign worker need separate residency and work permit?

Yes, they are two distinct but complementary documents. Residency (temporary or permanent) is granted by the Guatemalan Migration Institute (IGM) and authorizes the foreigner's legal stay in the country. The work permit is granted by the Ministry of Labor and specifically authorizes the foreigner to provide services as a dependent employee for a specific employer. After obtaining residency, the foreigner has up to 3 months to file the work permit with IGM.

What happens if a foreigner works without a permit in Guatemala?

The consequences are severe for both parties. The company faces MINTRAB fines, retroactive payment of unpaid employer contributions, additional labor inspections and reputational damage. The foreign worker can be sanctioned under migration law, deported and declared inadmissible for future entry. Additionally, the irregular employment relationship loses protection — the foreigner cannot effectively sue for labor benefits if they did not hold regular status. It is one of the most expensive legal risks a Guatemalan SME can take on.

Is the work permit granted to the worker or to the employer?

The work permit is tied to the specific worker AND the specific employer. If the foreign worker changes companies, the new employer must obtain a new work permit from scratch. It is non-transferable and not inheritable. Nor can the foreigner apply for the permit on their own — the process is always initiated and managed by the hiring company through the MINTRAB online system.

What labor obligations does the company have with a foreign worker?

Once the work permit is in place, the labor obligations are identical to those for a Guatemalan worker: individual employment contract registered with MINTRAB, IGSS enrollment, payment of minimum wage or above per contract, employer contributions (12.67% IGSS + 1% IRTRA + 1% INTECAP = 14.67%), Bono 14, Aguinaldo, vacation, severance for unjustified dismissal, and other Labor Code benefits. The foreign worker is also subject to IGSS and ISR (Income Tax) if their salary exceeds the exempt threshold.

How to Hire Foreign Workers in Guatemala 2026

More and more Guatemalan companies need to hire foreign talent — whether for technical specialization, an internal transfer from a parent company, knowledge of a specific market, or simply because the ideal candidate turned out not to be Guatemalan. The good news is that Guatemalan law allows companies to hire foreigners, but failing to complete the procedures is one of the most expensive legal risks a Guatemalan SME can take on: fines, deportations, irregular labor claims and reputational damage before the Ministry of Labor.

Executive summary: hiring a foreigner requires (1) a MINTRAB work permit filed by the company, (2) legal residency from IGM in the worker's name, (3) compliance with the 90% Guatemalan-payroll rule under Article 13 of the Labor Code, and (4) payment of the mandatory Q. 3,000 training fee for national workforce development. Total time: 6 to 12 weeks. Skipping any of these steps invalidates the employment relationship.

Applicable legal framework

Hiring foreign workers in Guatemala is governed by several legal instruments that operate concurrently:

Decree 1441 — Labor Code, Article 13: establishes the 90% national-worker rule and the 85% national-payroll rule.
Government Agreement 528 — Regulation on Work Authorization for Foreign Persons: regulates the procedure, requirements and obligations of the MINTRAB work permit.
Decree 95-98 — Migration Law: regulates residency, entry and stay of foreigners in Guatemalan territory.
Agreements 3-2019 and 4-2019: new visa and residency regulations, in force since April 2019, replacing the previous visa regime.
Decree 9-98 — Foreign Investment Law: guarantees equal treatment to foreign investors (relevant when the hired person is also a shareholder).

The 90/10 rule: the cap on foreigners on the payroll

Article 13 of the Labor Code is the cornerstone of the entire regulation. It sets out two mandatory ratios:

1. Workforce composition: at least 90% of the workers in any company, factory, business or operation must be Guatemalan. Only up to 10% may be foreign.

2. Payroll composition: 85% of total wages paid by the company must go to Guatemalan workers. Only up to 15% of total payroll may go to foreigners.

The ratio is calculated over the company's total headcount and total payroll — not per department or branch. Compliance is verified through an accountant's certification that the company's authorized accountant must issue and submit to MINTRAB.

Exceptions to the 90/10 rule

Exceptions are limited and must be expressly justified:

Specialized technical positions: where the required knowledge is not available in the Guatemalan labor market. Must be evidenced with a position description and prior recruitment efforts.
Management roles: managerial or director-level positions in companies with foreign shareholders or a foreign parent, where the foreigner's presence is strategic.
Companies with fewer than 10 workers: have practical flexibility in how the rule is applied, although the 90/10 principle still stands.
Spouses or partners of Guatemalan nationals, recognized refugees and other protected categories have a special regime.

Important: before hiring a foreigner, the company must verify that it still has "headroom" within the 10% quota. If it already has 12% foreigners on the payroll, MINTRAB may deny the permit even when every other requirement is in order.

Requirements for the foreign worker

To be legally hired in Guatemala, the foreigner must meet the following personal and immigration requirements:

1. Valid passport

Minimum 6 months of validity at the time of filing.
Blank pages for migration stamps.

2. Regular migration status

Work visa or temporary/permanent residency issued by the Guatemalan Migration Institute (IGM).
The MINTRAB work permit is complementary to residency — it does not replace it.
The foreigner has a maximum of 3 months after obtaining residency to file the work permit with IGM.

3. Apostilled professional documents

Professional degree or academic certificate from the country of origin, with Hague Apostille or consular legalization.
For licensed professionals (lawyers, doctors, engineers, accountants): mandatory incorporation into Universidad de San Carlos de Guatemala (USAC) before practicing the profession.
Apostilled letter of employment experience from the last employer.

4. Criminal background check from country of origin

Criminal record certificate issued by the competent authority of the country of origin.
Apostilled or consularly legalized.
Validity: no more than 6 months old at filing.

5. Sworn statement of Spanish proficiency

For foreigners from countries where Spanish is not an official language.
Sworn statement confirming that the worker speaks, understands, reads and writes Spanish.
Signed and notarized.

6. Employment contract or job offer

Individual employment contract in Spanish, signed by both parties.
Must specify position, working hours, salary, term and other conditions.
Subject to registration with MINTRAB within 15 days.

7. Additional documents by category

Spouse of a Guatemalan: recent marriage certificate from the National Registry of Persons (RENAP).
Refugee: refugee recognition resolution issued by the National Commission for Refugees (CONARE).
Parent of a Guatemalan child: child's birth certificate.

Requirements for the hiring company

The Guatemalan company, as the applicant for the work permit, must submit the following documents to MINTRAB. The company files and manages the permit — not the worker.

1. Active registrations and licenses

Active commercial license (patente de comercio) and company license (where applicable).
Active NIT with SAT (tax authority).
Employer registration with IGSS, IRTRA and INTECAP.
Registration with MINTRAB and an up-to-date individual employment contract registry.
Account in the MINTRAB online system to manage the filing digitally.

2. Formal application

Written application addressed to the Director General of Employment at MINTRAB.
Clearly stating the position to be filled, the specific duties and the justification for requiring a foreign hire.

3. Legal representative documents

Certified copy of the appointment of the company's legal representative.
Copy of the legal representative's DPI or passport.
Certified copy of the registration of the appointment with the Commercial Registry.

4. Accountant's certification for the 90/10 rule

Certification issued by the company's authorized accountant, detailing:
- Current total payroll headcount.
- Number of Guatemalan vs. foreign workers.
- Percentage that foreigners represent of the total.
- Total wages paid broken down by nationality, with corresponding percentages.
This certification demonstrates that hiring the new foreigner does NOT exceed the 10% headcount cap or the 15% payroll cap.

5. Notarial deed of employer responsibility

Notarial deed in which the company's legal representative commits to be responsible for the conduct of the foreign worker during the employment relationship.
Includes migration and labor compliance obligations.

6. Justification of the need to hire a foreigner

Executive memo explaining:
- Why the position specifically requires a foreigner.
- Prior searches or recruitment efforts in the Guatemalan market (where applicable).
- Technical knowledge, experience or unique abilities of the candidate.
- Benefits to local operations.

7. Training commitment + Q. 3,000 fee

This is one of the most important obligations and often surprises first-time employers of foreign workers:

The company commits in writing to train Guatemalan staff in the skills and knowledge held by the foreign worker, so that a national can eventually fill the role.
Mandatory payment of Q. 3,000.00 per work-permit application, which goes to training programs for Guatemalan workers.
Proof of payment must be attached to the file.

8. Position documentation

Appointment record of the foreigner to the specific position.
Job profile: description of duties, academic and experience requirements.
Organizational chart showing where the position sits.
Salary and benefits offered.

9. Worker documents (digitized)

Complete passport of the foreigner (all pages).
Migration documentation (residency or visa).
Apostilled criminal background check.
Apostilled professional degrees.
Sworn statement of Spanish proficiency (if applicable).

Step-by-step procedure

Step 1: Gather and apostille the worker's documents

Before any filing in Guatemala, the foreign worker must obtain in their country of origin: passport, criminal record, professional degree and letter of experience, all apostilled or legalized. Time: 2-4 weeks.

Step 2: Apply for residency before IGM

The worker must obtain temporary residency (for migrant workers) before the Guatemalan Migration Institute. Without residency, MINTRAB cannot issue the work permit. Time: 4-8 weeks.

Step 3: Company creates a MINTRAB system account

The legal representative or an attorney-in-fact must create an account in the MINTRAB online portal to manage the permit digitally. This is a one-time setup.

Step 4: Company prepares corporate documentation

Compile all documents described above (accountant's certification, notarial deed, training commitment, etc.).
Make the Q. 3,000 training payment.
Digitize everything in PDF format.

Step 5: Submit the application to MINTRAB

The company uploads all documents to the online portal, pays the corresponding administrative fees and submits the application to the Director General of Employment.

Step 6: MINTRAB review

MINTRAB has 5 business days to review the file and request corrections or additional documents. The company has a deadline to remediate.

Step 7: Resolution and permit issuance

Once the file is complete, the approval resolution takes an additional 2-4 weeks. The permit is issued naming the worker, the specific company, the position and the validity period.

Step 8: Worker registration

The foreigner files the work permit with IGM within 3 months of obtaining residency.
The company registers the individual employment contract with MINTRAB within 15 days.
The company enrolls the worker in IGSS starting day one.

Process costs

Total cost varies with the worker's country of origin and case complexity. Reference estimate:

Item	Approximate cost
Mandatory MINTRAB training fee	Q. 3,000.00
MINTRAB administrative fees	Variable (~Q. 500)
IGM residency processing	Q. 1,000 - Q. 3,000
Apostille and sworn translation of documents	Q. 1,500 - Q. 5,000
Notarial deed of responsibility	Q. 500 - Q. 1,500
Legal counsel fees (optional but recommended)	Variable
APPROXIMATE TOTAL (excluding professional fees)	Q. 6,500 - Q. 12,500

Total process timeline

Apostille and document preparation abroad: 2-4 weeks.
IGM residency processing: 4-8 weeks.
MINTRAB work permit processing: 2-4 weeks (with a complete file).
Possible corrections or remediations: 1-3 additional weeks.
Realistic total time: 6 to 12 weeks from start to full operation.

For companies that need the worker urgently, we recommend running parallel tracks (residency + corporate document preparation) to compress the total timeline to 6-8 weeks.

Ongoing labor obligations once the permit is in place

Once the work permit is issued, the company's obligations toward the foreign worker are identical to those owed to a Guatemalan worker. There is no separate labor regime:

Written individual employment contract registered with MINTRAB within 15 days.
IGSS enrollment from day one.
Salary at or above the legal minimum for the activity and region.
Employer contributions: 12.67% IGSS + 1% IRTRA + 1% INTECAP = 14.67%.
Bono 14 (Decree 42-92), payable in the first half of July.
Aguinaldo (Decree 76-78), 50% in December + 50% in January.
Vacation of 15 business days after the first year.
Severance for unjustified dismissal, under Art. 82 of the Labor Code.
Incentive bonus per company policy and Decree 78-89.
Employee IGSS withholding (4.83% of ordinary salary).
ISR withholding if salary exceeds the exempt threshold (Q. 51,024 per year in 2026).

For more detail on the real total cost of having a worker on the payroll, see: The real cost of hiring an employee in Guatemala.

Categories of foreigners and their implications

1. Dependent migrant worker

The most common case: a foreigner hired by a Guatemalan company for a specific position, in a dependent employment relationship. Requires a MINTRAB work permit.

2. Spouse or partner of a Guatemalan

Subject to a streamlined migration regime. Residency is obtained by proving the marital bond. Still requires a work permit, but the procedures are faster.

3. Parent of a Guatemalan child

Similar regime to spouses. Required documentation: child's birth certificate. Requires a work permit.

4. Recognized refugee

Special status granted by the National Commission for Refugees (CONARE). Requires a work permit, but specific labor-integration programs apply.

5. Independent contractor / freelancer / consultant

Ambiguous status. If the contract is genuinely for independent services (no subordination, no fixed schedule, no exclusivity), technically no work permit is required, but legal residency in the country and tax compliance are. We recommend professional advice before operating under this structure — courts apply the principle of primacy of facts and can re-characterize the relationship as employment.

6. Digital nomad / remote worker for a foreign employer

If the foreigner works from Guatemala but their employer is in another country and pays them abroad, NO MINTRAB work permit is required. However, they still need an appropriate migration status (for example, the new residency category for digital nomads).

Penalties for non-compliance

The consequences of hiring a foreigner without completing the procedures are severe for both parties:

For the company

MINTRAB fines: several minimum wages per irregular worker.
Retroactive employer contributions to IGSS not paid, plus late-payment interest.
Suspension of operations in serious or repeat cases.
Additional labor inspections that may surface further violations.
Reputational damage with MINTRAB that affects future filings.
Criminal liability in cases of human trafficking or exploitation.

For the foreign worker

IGM migration fines proportional to the duration of irregular stay.
Deportation with an order to leave the country.
Migration inadmissibility for future entry to Guatemala (potentially permanent).
Loss of labor protection: a foreigner in irregular status may struggle to claim labor benefits in court.

Common mistakes when hiring foreigners

Assuming residency is enough to work. Residency (IGM) and work permit (MINTRAB) are separate procedures, and both are required.
Not checking the 90/10 ratio before starting. If the company already exceeds 10% foreign workers, no new permits can be obtained.
Hiring without waiting for permit approval. Letting the worker start while the permit is in process is operating outside the law.
Confusing a work permit with a professional services contract. If there is subordination, courts will rule it is an employment relationship regardless of what the contract says.
Not paying the Q. 3,000 fee up front. Without proof of payment, the file is rejected.
Forgetting the apostille on documents. Criminal background checks and degrees without apostille force a restart of the process.
Not registering the contract with MINTRAB within 15 days. Triggers an additional fine and weakens the company's position in any dispute.
Changing employer without a new permit. The permit is non-transferable. If the foreigner changes jobs, a new one must be obtained.

Frequently asked questions

Can a company hire a foreigner?

Yes, by meeting two requirements: a MINTRAB work permit filed by the company, and legal residency for the worker issued by IGM. Additionally, the 10%-foreigner and 15%-foreign-payroll caps under Article 13 of the Labor Code must not be exceeded.

What is the 90/10 rule?

Article 13 of the Labor Code requires at least 90% of workers to be Guatemalan and at least 85% of total payroll to go to nationals. Only 10% of headcount and 15% of payroll may go to foreigners.

How much does a work permit cost?

A mandatory Q. 3,000.00 training fee plus administrative fees and parallel costs (apostille, translation, IGM residency). The total estimate ranges between Q. 6,500 and Q. 12,500, not counting professional fees.

How long does the full process take?

Between 6 and 12 weeks once you account for apostille abroad, IGM residency and the MINTRAB permit. With parallel tracking and a complete file, it can be compressed to 6-8 weeks.

Does the foreigner need separate residency and work permit?

Yes. They are two distinct documents: residency (IGM) authorizes legal stay; the work permit (MINTRAB) specifically authorizes work for one employer. After obtaining residency, there are 3 months to file the work permit with IGM.

What happens if they work without a permit?

The company faces fines, retroactive IGSS contributions and reputational damage. The worker may be deported and barred from future entry. The employment relationship loses legal protection.

Are labor obligations different for a foreigner?

No. Once the permit is in place, the obligations are identical: minimum wage, IGSS, Bono 14, Aguinaldo, vacation, severance and other Labor Code benefits apply equally. The foreigner is also subject to employee IGSS and ISR.

Is the permit transferable between employers?

No. The permit is tied to the specific worker AND the specific employer. If they change companies, the new employer must initiate a new application from scratch.