After gaining his freedom, Guzmán left for Europe. The Battle of Chile (1975-1979) won six grand prizes in Europe and Latin America and was shown in theaters in 35 countries. Cineaste declared it one of the 10 best political films in the world. In 1987, Guzmán made In God's Name (Grand Prize, Festival dei Popoli) about the Catholic Church's fight for human rights in Chile. The Southern Cross (1992, Grand Prize, Marseille International Festival of Documentary Film) concerned the theology of liberation and popular religion in Latin America. In 1995, Town in Stasis focused on the historical memory of a Mexican village. In 1997, Chile, Obstinate Memory looked into collective political amnesia in Chile. 1999 brought Robinson Crusoe Island about a remote Chilean island. The Pinochet Case (2001, Grand Prize, Marseille International Festival of Documentary Film) examined the international legal case brought against Pinochet. In 2002, Guzman completed Madrid, a personal look at Spain's capital.
Recently, Guzmán made Salvador Allende (2006), an award-winning film about the Chilean president's life. Guzmán currently chairs FIDOCS, the international documentary film festival in Santiago, Chile, that he founded in 1997. He lives in Paris with Renate Sachse, who collaborates on the scripts for his films and produced Nostalgia for the Light. His two daughters, Andrea and Camila, are also filmmakers and frequently collaborate on his projects.