With almost all ballots counted, the election tribunal said Mr Perez Molina won 55% of the vote, while his rival, Manuel Baldizon, garnered£¨»ñµÃ£© only 45%.
Mr Perez Molina will become the first former military figure to rule since the civil war ended in the 1990s.
Both candidates had promised to fight violent crime and the presence of Mexican drug gangs in the country.
Guatemala is a key transit point for drugs from South America to the US.
Death penalty pledge
Mr Perez Molina, running for the right-wing Patriotic Party, has pledged to employ 10,000 new police and 2,500 more soldiers as part of his tough stance on crime.
Speaking after results came in, he said: "The first thing to do will be to lower the levels of violence and insecurity that we are living with, and work with lawmakers to improve the state's budget."
He was regarded as the favourite after coming out on top in the first round against Mr Baldizon, who leads the Renewed Democratic Liberty party (Lider).
But critics say Mr Perez Molina's record is tarnished£¨Ê¹ÉúÐ⣬մÎÛ£© by his time in the army - with rights groups accusing him of abuses as commander of troops in the worst areas of Guatemala's conflict.
The 61-year-old says there is no evidence to substantiate the claim.
During the campaign Mr Baldizon, 41, said he supported the introduction of the death penalty for the most serious offences.
But the business tycoon-turned-politician also made promises that some considered outlandish£¨¹Å¹ÖµÄ£© , including taking Guatemala's football team to the World Cup.
Democracy was restored in Guatemala in 1996, after a 36-year conflict in which more than 200,000 people are believed to have been killed.
Mr Perez Molina narrowly lost four years ago to the incumbent, President Alvaro Colom, who is constitutionally limited to one term.
More than half of Guatemala's 14 million people live in poverty, and organised crime is rife£¨ÆÕ±éµÄ£© .
President Alvaro Colom has had to send troops to retake some provinces from the Zetas drug gang, including Mr Baldizon's home state of Peten bordering Mexico.
Mr Colom's former wife Sandra Torres had hoped to run, but, despite divorcing her husband, fell foul of a ban on close relatives of the president running for the post.
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