Peru (PE)
Peru combines world-class food, ancient Inca heritage, Pacific coastline, Amazon rainforest, Andean cities and one of Latin America's lower cost-of-living profiles.
Buying Property in Peru
The full buying process, transaction costs, mortgage, and legal requirements.
Foreigners can buy property in Peru under the same conditions as Peruvian nationals, with one key constitutional restriction: Article 71 of the Constitution prohibits foreign ownership (direct or indirect) of land, mines, water, forests, fuel or energy sources within 50 km of any international border unless a Supreme Decree of public necessity is issued. Outside border zones, there are no quotas, no minimum investment, and no additional foreign-buyer surcharges. Total closing costs typically range from 4–7% of the purchase price.
Rent vs. Buy
Rent first unless you know the district — humidity, noise, seismic standards, security and local legal process all vary significantly. Buying makes most sense for long-term Lima, Arequipa or Cusco residents with strong Spanish-language or legal support and no border-zone complications.
Buying Process — Step by Step
Check border-zone eligibility
1–3 daysConfirm the property is not within 50 km of any international border (Tacna/Chile, Tumbes/Ecuador, Puno/Bolivia, Loreto/Madre de Dios). Article 71 of the Constitution bans direct AND indirect foreign ownership in these zones; a Peruvian company does not bypass the restriction.
Shortlist and inspect
2–8 weeksVisit properties at different times of day and season. Check humidity, noise, seismic construction standards (Lima is a high-risk zone), building maintenance, security and condo administration quality.
SUNARP title search (partida registral)
1–7 daysObtain the full partida registral from SUNARP. Verify registered owner, any liens, mortgages, easements, adverse claims, boundary conflicts and active powers of attorney. Use the online Consulta de Propiedad service plus a paid certificate for formal due diligence.
Municipal due diligence
1–2 weeksCheck outstanding predial (property tax) and arbitrios (municipal services fees) debts with the local SAT office, verify zoning classification, building permits (licencia de construcción), conformity certificates and any condo (junta de propietarios) arrears.
Promise-to-sell contract (minuta de compraventa)
1–3 weeksEngage a lawyer to draft and review the minuta. Negotiate escrow-style payment controls where possible. Avoid large informal cash payments; ensure all funds flow through bank accounts for anti-money-laundering compliance and future SUNAT documentation.
Notarial deed (escritura pública)
1–2 weeksParties sign before a Peruvian notary who verifies identities, authenticates the deed and processes the documents for SUNARP. The notary does not replace independent legal advice — retain your own lawyer throughout.
Pay alcabala transfer tax
Same month as transferBuyer must pay alcabala to the relevant municipal SAT by the last business day of the month following the transfer. Present proof of payment to the notary before or alongside deed execution.
SUNARP registration
1–4 weeksThe notary submits documents to SUNARP to register the transfer of title. Once registered, ownership is opposable to third parties. Obtain the updated partida registral confirming your name as registered owner.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Alcabala transfer tax | 3% on value above 10 UIT (S/55,000 in 2026) | Buyer pays. The 2026 UIT is S/5,500, so the first S/55,000 of any purchase is exempt. Due by last business day of the month after transfer. First-sale transfers from a developer may be exempt. Administered by local SAT, not SUNAT. |
| Notary fees | Approx. 0.3%–0.8% of transaction value | Varies by notary and transaction complexity. Covers deed preparation, identity verification and SUNARP submission. Get a written quote before engaging. |
| SUNARP registration fee | Approx. 0.2%–0.4% of declared value (varies by registry office) | Scales with declared transaction value. Combined notary + registry costs typically 0.5%–1.5% together. |
| Lawyer (due diligence and contract) | S/2,000–S/8,000+ or 0.5%–1% of purchase price | Strongly recommended for foreign buyers. Covers title search review, contract negotiation, municipal checks and SUNAT/border-zone compliance. Some lawyers charge a flat fee, others a percentage. |
| Real estate broker commission | 3%–5% of sale price (often paid by seller) | Clarify who pays before signing any listing or exclusivity agreement. Foreign buyers sometimes pay a buyer's agent fee separately; always confirm in writing. |
| Annual impuesto predial (property tax) | 0.2% up to 15 UIT assessed value; 0.6% between 15–60 UIT; 1.0% above 60 UIT | Applied to the municipality's autovalúo (assessed cadastral value), which is typically below market value. Paid annually to the local SAT. Arbitrios (waste, street cleaning, parks) are billed separately. |
| Capital gains tax on sale (non-resident) | 5% effective rate on net gain | Non-residents pay 5% on the gain (technically 6.25% × 80% net basis). Non-residents must obtain a RUC (Peruvian tax ID) and certify their cost basis (devolución del capital invertido) with SUNAT before receiving proceeds, otherwise tax may apply to gross sale price. |
The Notary — Mandatory for All Purchases
Peruvian notaries (notarios públicos) are legally required for escrituras públicas (public deeds). They verify the identities of the parties, authenticate the transfer deed, ensure the alcabala tax has been paid and submit documents to SUNARP. However, notaries represent neither buyer nor seller — retain your own independent lawyer for due diligence, contract review and legal advice.
Mortgage
Mortgages for foreign buyers are available but uncommon — roughly 85–90% of foreign property purchases in Peru are cash transactions. Banks require extensive income documentation, and non-residents face higher scrutiny. Interest rates for foreigners in 2026 are typically 7.5%–9.5% p.a. in soles and 7%–9% p.a. in USD. USD-denominated mortgages carry FX risk if your income is in soles.
30%–40% for non-residents; residents with local income and credit history may qualify at 20%–30%
Banks assess income source, tax residence, Carnet de Extranjería (CE) status and local credit history. Non-residents without a CE or established Peruvian income will find BCP, BBVA and Scotiabank the most accessible. Interbank offers a diaspora-focused product (Ahorro Casa con Apoyo del Exterior) allowing overseas Peruvians to remit monthly to a Peruvian relative for 6+ months before the bank evaluates a local mortgage. Dollar loans are available but create currency risk; ensure your income currency matches your loan currency where possible.
Land Registry
SUNARP (Superintendencia Nacional de los Registros Públicos) is Peru's national public registry authority. All property rights, mortgages, liens and ownership transfers must be registered at SUNARP to be enforceable against third parties. Search the partida registral (property record) free of charge via the Consulta de Propiedad online service, or obtain a paid certificado literal for formal due diligence. SUNARP has nearly 60 offices nationwide. Website: www.sunarp.gob.pe
Taxes
Transfer: alcabala at 3% of value above 10 UIT (S/55,000 in 2026), paid by buyer to local SAT within the month of transfer. Annual holding: impuesto predial at 0.2%–1% on autovalúo value in progressive tiers, plus arbitrios. On sale: non-residents pay an effective 5% capital gains tax on net profit; cost basis must be certified with SUNAT in advance via the devolución del capital invertido procedure. First-sale transfers from developers are generally exempt from alcabala.
New Build vs. Existing Property
New builds from developers are generally exempt from alcabala on first sale, but carry developer completion risk, permit issuance delays and potential defect liability. For off-plan purchases, verify the developer's SUNARP-registered title, building permits and any bank-backed guarantee fund. Existing properties require comprehensive SUNARP title search, municipal debt clearance, occupant verification and building-permit confirmation — all before signing any contract.
Selling Property
Non-residents must register a RUC with SUNAT and certify their original acquisition cost before receiving sale proceeds; failure to do so means tax may apply to the full sale price rather than only the gain. Retain the original escritura pública, evidence of all alcabala payments, improvement invoices and any repatriation bank transfers to support cost-basis certification. Capital gains are taxed at an effective 5% for non-residents. Engage a Peruvian tax lawyer well before the sale closes.
Useful Links
Property Buying
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