Guatemala

Guatemala remains one of Central America’s strongest economies, thanks to growing foreign investment, a resilient domestic banking sector and a steady flow of remittances from Guatemalans living in the US. While global uncertainty, market volatility and changing trade dynamics with the US have led to wariness among investors in the region, the country continues to attract significant long-term investment, particularly in the manufacturing, infrastructure and energy sectors, generating a sustained pipeline of work across the banking, finance and corporate practices.

In the finance sphere, clients are increasingly turning to capital markets, private debt and other, more sophisticated financing structures rather than traditional bank lending, meaning an uptick in demand for advice on cross-border transactions involving international lenders, multilaterals and institutional investors.

The energy sector continues to be a major driver of legal work: the landmark PEG-5 electricity tender, which will procure up to 1,400 MW of power and 150 MW of installed capacity through the country’s largest-ever long-term electricity contracts, representing more than 65% of national demand, is expected to lead to significant investment over the next year. As a result, firms have seen an increase in project finance, M&A and regulatory mandates in this space.

The infrastructure sector has become another area of focus, as Guatemala has continued to lag behind other Central American nations in terms of transport infrastructure, and both private investors and the government are prioritising projects to develop and improve tollroads, highways, ports and airport facilities.

While the energy market is expanding, long-running disputes over the future of mining and hydroelectric power projects in Guatemala – including the Escobal mine in San Rafael Las Flores, one of the world’s largest silver producers – have continued, due to concerns about the environmental impact and lack of consultation with the local Indigenous communities.

In the real estate sphere, development is booming as demand for housing grows, with firms frequently advising on the use of joint ventures and private equity-backed financing for the construction of large-scale residential projects in Guatemala City and in former industrial areas on the city’s outskirts, alongside the development of commercial projects -including shopping centres, retail parks and strip malls – along major highways.

In the M&A arena, the volume of transactions has picked up after a relatively slow start to the year, driven largely by increased activity in the energy sector, as well as by a push to complete deals before Guatemala’s first competition law takes full effect in December 2026. While the market remains dominated by acquisitions of smaller businesses rather than mergers, firms are seeing an ongoing increase in work advising leading Guatemalan companies on their expansion into Central America through cross-border acquisitions in the region.

Intellectual property protection is also becoming a higher priority. Trade mark filings remain the main area of activity, but infringement actions have noticeably increased as businesses place a greater emphasis on protecting their brands, particularly in the e-commerce sphere. Guatemala has also taken various steps to improve its IP framework, as part of the broader commitments under its trade agreement with the US: the government has introduced several initiatives aimed at improving customs enforcement, entered an accelerated patent grant programme with the US Patent and Trademark Office intended to address years-long delays in processing applications, and committed to joining the Madrid Protocol within the next two years.

Finally, the country’s dispute resolution landscape is continuing to evolve. Arbitration has become increasingly popular for clients facing complex commercial disputes, enabling them to avoid lengthy court proceedings and procedural inefficiencies in the judicial system.

In addition, new anti-money laundering and counter-terrorist financing legislation was approved by Congress in June 2026, unifying the separate existing laws and introducing expanded regulations and sanctions that will bring Guatemala more closely in line with international standards before its mutual evaluation by GAFILAT, the Financial Action Task Force of Latin America, in 2027. The reforms will generate a significant amount of legal work to assist companies with operations in the region with strengthening their compliance and risk management frameworks.

Furthermore, Guatemala’s judicial and constitutional bodies are themselves changing. New members of the Supreme Electoral Tribunal (TSE) and the Constitutional Court were selected in early 2026, amid hopes that the change will restore public trust in the integrity of the justice system after years of concerns about the outgoing courts’ record in corruption and human rights cases. Moreover, a new attorney general, Gabriel García Luna, took office in May 2026 and has already begun overhauling the institution and replacing the ‘repressive and vengeful’ regime of his predecessor, Consuelo Porras, who was sanctioned by both the US and the EU for ‘actions that undermine democracy and the rule of law’.

Turning to Guatemala’s legal market, this remained relatively unchanged throughout 2025 and 2026, with regional heavyweights ALTA - Guatemala, Arias, Consortium Legal, BLP, Mayora & Mayora, S.C. and Aguilar Castillo Love continuing to dominate alongside established full-service domestic firms Legalsa and Carrillo & Asociados.

A number of other firms maintain a strong regional footprint, including Central Law Guatemala, Lexincorp, Lex Atlas, Dentons Central America, Alegalis (part of the Central American LEGIC Group network), Ecija Integrum and the recently formed Tactic Legal. The domestic market also features a range of well-regarded independent practices, including full-service outfits Palomo Abogados and Bermejo & Bermejo, and boutiques such as Clarity Law, Estudio Chávez Bosque S.A., Solver Law (which focuses on white-collar crime), LegalPlus (a specialist in venture capital and technology law) and dedicated IP firms Palacios & Asociados/Sercomi, Viteri & Viteri and IP Right.