Authored by the expert who managed and guided the team behind the Peru Property Pack
Everything you need to know before buying real estate is included in our Dominican Republic Property Pack
Arequipa offers foreign buyers one of Peru's most accessible and attractive property markets.
This comprehensive guide covers everything you need to know about buying property as a foreigner in Arequipa, from legal requirements and popular neighborhoods to costs, taxes, and expat life in Peru's second-largest city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Peru, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Arequipa with full ownership rights, requiring only a Peruvian tax ID and proper due diligence through a notarized deed process.
Popular expat areas include Cayma, Yanahuara, and Selva Alegre, with typical apartment prices ranging from $98,000 to $118,000 and rental yields around 5.5-5.7%.
| Aspect | Details | Requirements/Costs |
|---|---|---|
| Foreign Ownership | Full rights except near borders | Peruvian tax ID (RUC) |
| Residency Pathway | Property purchase can assist visa applications | $50,000+ for investor consideration |
| Popular Areas | Cayma, Yanahuara, Selva Alegre | Modern amenities, city views |
| Purchase Process | Notarized deed, title registration | Lawyer recommended |
| Transaction Costs | 3% transfer tax + fees | 4.5-6% total purchase cost |
| Property Prices | $98,000-$118,000 (2-bedroom) | 9% price increase in 2024 |
| Rental Yields | 5.5-5.7% gross annually | 3.5-4% after expenses |
What can foreigners actually buy in Arequipa when it comes to property, and are there any restrictions?
Foreigners enjoy nearly identical property ownership rights as Peruvian citizens in Arequipa.
You can purchase apartments, houses, commercial buildings, and land throughout the city with full ownership rights. The process requires obtaining a Peruvian tax identification number (RUC) but does not require residency or citizenship status.
The primary restriction affects properties within 50 kilometers of Peru's international borders, requiring special government approval that rarely impacts Arequipa buyers unless you're considering land near the Chilean or Bolivian border areas. Additionally, officially designated cultural heritage sites cannot be purchased by foreigners, though this restriction applies to very few properties within Arequipa's urban areas.
As of September 2025, the Peruvian government continues to welcome foreign investment in real estate as part of broader economic development policies.
It's something we develop in our Peru property pack.
Can buying property in Arequipa help you get residency or even citizenship in Peru?
Property ownership alone does not automatically grant residency status in Peru.
However, purchasing property worth $50,000 or more can strengthen your application for an Independent Means (Rentista) visa, particularly when combined with proof of external income sources. For investor visa consideration, property purchases of $100,000 or higher, especially those demonstrating job creation or business investment, receive more favorable treatment from immigration authorities.
Both visa pathways can lead to temporary residency, which may eventually convert to permanent residency status. After maintaining continuous legal residency for two years through any valid visa category, you become eligible to apply for Peruvian citizenship, though this requires meeting additional language proficiency and integration requirements.
The citizenship process involves demonstrating basic Spanish language skills and knowledge of Peruvian culture and history, regardless of your property investment level.
Where do foreigners usually buy property in Arequipa, and which neighborhoods are the most popular?
Foreign buyers concentrate their purchases in four primary districts within Arequipa.
Cayma and Yanahuara represent the most sought-after areas for international buyers, offering modern condominium developments, stunning views of the surrounding volcanoes, and proximity to international amenities. These districts command premium prices but provide the lifestyle most familiar to foreign residents.
Selva Alegre attracts buyers seeking green spaces and tranquil residential environments while maintaining reasonable access to city center services. The district offers a balance between modern conveniences and peaceful suburban living.
Sachaca appeals to those preferring quieter, more suburban settings with easy access to countryside areas, making it popular among retirees and remote workers seeking lower-density living.
The historic center draws certain buyers interested in colonial architecture and walkable urban environments, though property options tend toward older buildings requiring renovation.
What's the step-by-step process to buy a property as a foreigner in Arequipa?
The property purchase process involves five mandatory legal steps plus several recommended precautions.
| Step | Requirement | Timeline |
|---|---|---|
| 1. Tax ID Acquisition | Obtain RUC from SUNAT with passport | 1-2 days |
| 2. Property Due Diligence | Verify title, obtain Certificate of Property Registry | 1-2 weeks |
| 3. Sales Agreement | Sign notarized "Escritura pública" deed | 1 day |
| 4. Tax Payment | Pay 3% transfer tax, 18% VAT (new builds) | Same day |
| 5. Title Registration | Register with SUNARP for legal ownership | 2-4 weeks |
| Optional: Legal Representation | Hire local lawyer/notary for guidance | Throughout process |
| Optional: Pre-Contract | Sign option contract with deposit | Before main contract |
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Which parts of the process are mandatory by law, and which are just optional but recommended?
Peruvian law mandates specific steps while leaving others to buyer discretion.
Legally required elements include obtaining your RUC tax identification, conducting title verification through SUNARP records, executing the notarized public deed ("Escritura pública"), paying all applicable taxes and fees, and completing title registration with SUNARP for legal ownership recognition.
Highly recommended but optional steps include hiring a local lawyer or notary for contract review and process guidance, using licensed real estate agents for property search and negotiation, signing preliminary contracts with deposits to secure properties, and obtaining title insurance for additional protection against unforeseen issues.
Many successful foreign buyers choose to complete optional steps to minimize risks and ensure smooth transactions, particularly when purchasing from abroad or dealing with higher-value properties.
It's something we develop in our Peru property pack.
What documents do you need to provide as a foreign buyer?
Foreign buyers must prepare four essential document categories for property purchases.
Your valid passport serves as primary identification throughout the process, while your Peruvian RUC or DNI extranjero number provides tax identification for all transactions. Proof of funds documentation demonstrates your ability to complete the purchase, typically through bank statements or pre-approval letters.
If purchasing remotely, you'll need a notarized Power of Attorney executed at a Peruvian consulate in your home country, including official apostille certification and certified Spanish translations. This document must specifically reference the property details and grant sufficient authority for your representative to complete the transaction.
Additional documents may include income verification for certain visa applications, certified translations of key documents, and specific property-related paperwork depending on your purchase circumstances.
Can you complete the purchase without being physically in Peru, or do you need to be there in person?
Remote property purchases are legally permissible and commonly completed by foreign buyers.
You must grant a notarized Power of Attorney to a trusted representative in Peru, properly executed at a Peruvian consulate in your home country with apostille certification and official Spanish translation. This document authorizes your representative to sign contracts, transfer funds, and complete all necessary legal procedures on your behalf.
The Power of Attorney must include specific property information, transaction details, and comprehensive authority for your representative to act in your interests. Many buyers choose experienced local lawyers or real estate professionals as their appointed representatives.
While remote purchases are possible, some buyers prefer to visit Arequipa at least once to view properties personally and meet their legal representatives before proceeding with significant investments.
What are the common mistakes and pitfalls that foreigners make when buying in Arequipa?
Foreign buyers frequently encounter seven major pitfalls that can result in financial losses or legal complications.
Inadequate due diligence on property titles represents the most costly mistake, potentially resulting in purchases of properties with liens, unpaid taxes, or fraudulent sellers. Many buyers also underestimate total transaction costs, failing to budget for the 4.5-6% in taxes and fees beyond the purchase price.
Skipping professional legal representation often leads to contract misunderstandings, missed deadlines, or inadequate protection of buyer interests. Ignoring border proximity restrictions can create legal complications, while failing to register deeds properly leaves buyers without legal ownership recognition.
Poor document translations and inadequate market price research also contribute to problematic transactions. Additionally, some buyers misunderstand residency requirements, expecting automatic immigration benefits from property ownership.
Working with experienced local professionals and conducting thorough research prevents most of these common errors.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Peru versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's life like as an expat in Arequipa, and how easy is it to settle in?
Arequipa offers an exceptional quality of life for international residents at significantly lower costs than most Western cities.
The city provides year-round pleasant weather, stunning colonial architecture, vibrant culinary scenes, and excellent safety levels compared to other Latin American urban centers. Proximity to natural attractions including volcanoes, canyons, and mountain ranges appeals to outdoor enthusiasts, while the growing entrepreneurship community creates networking opportunities.
Healthcare costs remain remarkably affordable with good quality private medical services available, and the overall cost of living allows comfortable lifestyles on modest budgets. The local population demonstrates exceptional warmth toward foreign residents, facilitating social integration.
Challenges include a smaller international community compared to Lima, limited international school options for families, slower internet speeds averaging 9 Mbps, and reduced "big city" entertainment options. Non-Spanish speakers face initial language barriers, though many locals demonstrate patience with newcomers learning the language.
Most expats successfully adapt within 6-12 months with proper preparation and realistic expectations.
What are the typical property prices, rental yields, and how does the market look in the long term?
Arequipa's property market demonstrates strong performance with rising prices and solid rental returns as of September 2025.
Median apartment prices for two-bedroom units range from $98,000 to $118,000, with new developments averaging 451,000 soles (approximately $115,000) in late 2024. The market experienced 9% year-over-year price increases in 2024-2025, driven by local demand and infrastructure improvements.
Rental yields average 5.5-5.7% gross annually for standard long-term rentals, dropping to 3.5-4% after accounting for expenses, vacancies, and management costs. Short-term rental markets through platforms like Airbnb can generate higher returns, with typical two-bedroom apartments earning around $560 monthly rental income.
Long-term market outlook remains positive due to Peru's economic stability, growing domestic demand, and increasing international recognition of Arequipa as a livable city. Infrastructure developments and tourism growth support continued property value appreciation, though buyers should expect market cycles rather than unlimited growth.
It's something we develop in our Peru property pack.
What taxes, notary fees, legal costs, and other charges should you expect when buying and owning property?
Property purchase and ownership in Arequipa involves multiple cost categories that buyers must budget beyond the purchase price.
| Cost Category | Percentage/Amount | Notes |
|---|---|---|
| Transfer Tax | 3% of purchase price | Mandatory on all sales |
| VAT (New Builds) | 18% of purchase price | First sale from developer only |
| Notary & Legal Fees | 1.5-2% of purchase price | Varies by complexity |
| SUNARP Registration | $300-$700 | Title registration fee |
| Lawyer & Translation | $1,000+ | Higher for remote purchases |
| Annual Property Tax | 0.2-1% of assessed value | Municipal assessment |
| Monthly Maintenance | $50-$150 | Condominiums only |
Is it possible to pay cash, or do foreigners have access to mortgages, and if so, under what rates and conditions?
Cash purchases represent the standard transaction method for foreign buyers in Arequipa's property market.
Most property sales complete through bank transfers or certified checks rather than traditional mortgage financing, as Peruvian banks rarely extend mortgage credit to non-resident foreigners. Banks typically require strong local ties, including residency status and documented Peruvian income sources, before considering mortgage applications.
Foreign residents with legal status and local employment may qualify for mortgages at rates starting around 6.95% for well-qualified borrowers, though rates can reach 8-10% depending on down payment amounts and credit profiles. Non-residents face significant hurdles and frequent loan rejections regardless of international creditworthiness.
Some developers offer owner financing arrangements for new construction projects, though these remain uncommon and typically involve higher interest rates than bank mortgages. Most successful foreign buyers arrange financing in their home countries or rely on cash purchases for Arequipa properties.
Planning for cash transactions simplifies the purchase process and provides stronger negotiating positions with sellers.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Arequipa represents one of Latin America's most accessible property markets for foreign buyers, combining legal transparency with affordable prices and strong rental yields.
Success requires proper due diligence, professional legal assistance, and realistic expectations about the purchase process and expat lifestyle in Peru's cultural capital.
Sources
- The LatinVestor - Moving to Peru: Buy Property Guide
- Life Abroad Hero - Peru Real Estate Guide
- Aparthotel - Foreigners Buying Real Estate in Peru
- F2F Cusco - Property Investment Guide
- The LatinVestor - Buy Land in Peru
- Nomads - Arequipa Neighborhoods
- The LatinVestor - Peru Real Estate Market
- Global Property Guide - Peru Rental Yields