The largest economy in Central America, Guatemala has continued its trajectory of steady growth, with the World Bank reporting an increase in GDP of 3.7% in 2024 and a predicted 3.5% in 2025. After weathering a historic institutional crisis, when elements of the judiciary and the political establishment tried to prevent democratically elected President Bernardo Arévalo from taking power in January 2024, the country has taken steps to increase transparency, improve its infrastructure and attract foreign investment.
While the volatile global situation has had an impact on Guatemala’s M&A market, law firms have continued to see a steady stream of work in this area. The change in administration and the government’s push to improve trade relations with key partners and create a more favourable environment for investment has led to an increase in interest from multinationals, particularly US-based companies seeking to expand in Central America or to nearshore their operations, with recent growth in the electronic and medical device manufacturing sectors, as well as the traditionally active food and beverage, textiles and clothing, and business process outsourcing industries. Firms are also increasingly called upon to advise on governance and compliance issues, in keeping with a global emphasis on ESG.
In addition, a key part of the government’s strategy to encourage foreign investment was the approval of Guatemala’s first Competition Law in November 2024 – something which is likely to open up a pipeline of work for firms before it comes fully into force in two years’ time.
Although there has recently been a slowdown in financing activity, especially in cross-border deals, compared to previous years, firms have noted an uptick in capital markets transactions – as both local and international clients have become increasingly interested in using alternative structures for financing – and project finance. In the fintech sphere, firms have been particularly active in advising on the development of online payment systems, opening up financial products to parts of the Guatemalan population which did not previously have access.
Other areas that have shown notable signs of growth include the transport and renewable energy sectors. While Guatemala currently has the lowest infrastructure investment rate in the region, the government has recently passed a law prioritising the improvement of the country’s road network, and also proposes to upgrade the PPP framework, as part of its drive to boost economic development. The renewable energy sector is also drawing increased interest from foreign investors, particularly in the development of solar, wind, geothermal and hydrogen projects. In addition, in April 2025 Guatemalan electricity distributors EEGSA and Energuate officially launched the next tender to supply energy to regulated end users for 15 years – the largest such tender in Guatemala’s history, which is expected to attract $4bn in investment.
In the mining sector, work has been limited as a result of ongoing conflicts over the environmental impact and objections by the indigenous community, which has left several projects in limbo; most recently, following a court-ordered consultation process, the Xinka people’s parliament denied its consent to the El Escobal silver mine, which has been suspended since 2017. Furthermore, in 2024 the government announced a review of all recently granted mining licences, in response to widespread allegations of corruption and illegal activity.
On the other hand, Guatemala’s real estate sector is still booming. In addition to the increase in residential developments in Guatemala City, there has been an uptick in industrial and commercial projects, particularly on the city outskirts, as new players enter the market and major developers branch out into different areas.
Meanwhile, in the dispute resolution sphere, the trend towards arbitration continues; while tax and labour litigation are still key areas of work, the slow progress of cases through the court system means clients are increasingly eager to find alternative methods of resolving conflicts.
The legal market in Guatemala remained largely stable in 2024 and 2025, with major regional outfits Alta QIL+4 Abogados, Arias, Consortium Legal, BLP, Mayora & Mayora, S.C. and Aguilar Castillo Love, and full-service domestic firms Legalsa and Carrillo & Asociados continuing to be the dominant forces.
Other notable firms with a presence in both Guatemala and Central America include Central Law, Lexincorp and Lex Atlas, in addition to international firm Dentons. In addition, in 2025, local firm AD Sosa & Soto took steps towards becoming a regional player through a merger with Costa Rica’s Tactic Legal; the new firm, which will retain the name Tactic Legal, also has offices in El Salvador and Honduras.
On the domestic front, Palomo Abogados, Alegalis and Bermejo & Bermejo are key names, alongside boutiques such as Clarity Law, Estudio Chávez Bosque S.A., white-collar crime specialist García-Merlos & Asociados, LegalPlus and the IP-focused Palacios & Asociados/Sercomi. In a significant development, leading lawyers Pilar Ogarrio and Ricardo Zúñiga Viteri left renowned IP boutique Viteri & Viteri to establish their own practice, IP Right, in October 2024.