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
Americans can legally buy property in Peru with virtually the same rights as locals. The only major restriction is that foreigners cannot own property within 50 kilometers of Peru's borders without special government authorization, but this applies to all foreign nationals equally.
Peru offers an attractive real estate market for Americans seeking both investment opportunities and lifestyle changes, with popular expat destinations like Lima, Cusco, and Arequipa showing strong rental yields between 5.5% and 6.45%.
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.
Americans enjoy equal property ownership rights as Peruvian citizens throughout most of the country, with no residency requirements for purchase.
The property buying process requires obtaining a Peruvian tax ID (RUC), involves mandatory notarization, and comes with transfer taxes of 3% plus ongoing property taxes starting at 0.2% annually.
| Aspect | Details for Americans | Key Requirements |
|---|---|---|
| Legal Status | Same rights as locals | Valid passport with "authorized to contract" stamp |
| Residency Requirement | Not required | Tourist visa sufficient for purchase |
| Physical Presence | Optional | Can use power of attorney for remote purchase |
| Transfer Tax | 3% of purchase price | Paid by buyer at closing |
| Annual Property Tax | 0.2% starting rate | Progressive rates based on property value |
| Border Restrictions | 50km from borders | Special authorization required |
| Mortgage Availability | Available but limited | 7-11% rates for USD loans |
Can Americans legally buy property in Peru?
Yes, Americans can legally buy property in Peru and enjoy the same property ownership rights as Peruvian citizens.
The Peruvian Constitution, specifically Article 71, grants foreign nationals equal property rights as locals. This means Americans can purchase, own, sell, and transfer real estate without nationality-based restrictions, quotas, or requirements to have a local partner.
The only significant limitation applies to all foreigners equally: properties within 50 kilometers of Peru's international borders require special government authorization for foreign ownership. This restriction exists for national security reasons and affects border areas with Ecuador, Colombia, Brazil, Bolivia, and Chile.
In popular urban centers and coastal regions where most Americans invest—such as Lima, Cusco, Arequipa, and beach towns—there are no such restrictions. Americans can freely purchase residential properties, condominiums, and commercial real estate in these areas.
As of September 2025, Peru continues to welcome foreign investment in real estate as part of its economic development strategy.
Do Americans have the same rights as locals when it comes to owning land and real estate?
Americans have virtually identical property ownership rights as Peruvian citizens under the constitution.
These equal rights include the ability to buy, sell, rent, inherit, and transfer property freely. Americans can own property in their individual names or through Peruvian corporations without restrictions on ownership percentages or control.
Foreign property owners, including Americans, have the same legal protections and recourse through Peru's court system. Property rights are constitutionally protected, and expropriation can only occur for public purposes with fair compensation.
The only area where rights differ slightly involves properties near international borders, where special authorization is required for all foreign nationals. This security measure affects less than 5% of Peru's territory and doesn't impact major cities or popular investment areas.
Americans also enjoy the same property tax rates and municipal services as local owners, with no discriminatory fees or charges based on nationality.
Are there any restrictions for Americans buying property compared to other foreign nationalities?
No, there are no restrictions specific to Americans compared to other foreign nationalities in Peru.
All foreign buyers, regardless of nationality, face the same rules and limitations. The 50-kilometer border restriction applies equally to citizens of all countries, whether they're from neighboring South American nations, Europe, Asia, or North America.
Peru does not maintain preferential treaties or special arrangements that give certain nationalities advantages in property ownership. An American buyer has exactly the same rights and obligations as a German, Japanese, or Brazilian investor.
The documentation requirements, tax obligations, and legal procedures are identical for all foreign purchasers. Americans don't need additional permits, face higher taxes, or encounter bureaucratic hurdles that don't apply to other foreigners.
This equal treatment reflects Peru's open investment policy designed to attract foreign capital and residents from around the world.
Do Americans need residency or a special visa to purchase property in Peru?
No, Americans do not need residency or a special visa to purchase property in Peru.
A standard tourist visa is sufficient for property purchases. However, the passport must include an "authorized to contract" stamp, which can be obtained at immigration upon entry or at immigration offices within Peru. This stamp specifically permits foreigners to enter into legal contracts during their tourist stay.
While residency isn't required for purchase, it can facilitate certain post-purchase processes like opening bank accounts or obtaining financing. Many Americans successfully buy property while maintaining tourist status throughout the entire transaction.
The tourist visa typically allows stays of up to 183 days per year, providing ample time to complete property transactions, conduct due diligence, and handle all necessary paperwork. Extensions are possible if needed for complex transactions.
It's something we develop in our Peru property pack.
Is it necessary for Americans to be physically present in Peru to complete a property purchase?
Physical presence in Peru is not mandatory for Americans to complete property purchases.
Property can be purchased remotely by granting a notarized power of attorney (POA) to a local representative, typically a lawyer or trusted real estate agent. The POA must be properly notarized and authenticated through the appropriate Peruvian consulate in the United States.
However, certain steps are easier to complete in person, particularly opening a Peruvian bank account and obtaining a local tax ID (RUC). While these can be managed through consulates or representatives, being present streamlines the process significantly.
Many Americans choose a hybrid approach: visiting Peru initially to establish banking relationships and complete preliminary steps, then finalizing the purchase remotely if needed. This approach balances convenience with the benefits of personal oversight.
For investment properties or when time permits, being present during the final signing provides additional security and allows for last-minute property inspections.
Don't lose money on your property in Peru
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the step-by-step requirements and documents Americans must provide to buy property in Peru?
| Step | Requirement | Documents Needed |
|---|---|---|
| 1. Tax ID | Obtain Peruvian RUC number | Valid passport, authorized to contract stamp |
| 2. Banking | Open Peruvian bank account | RUC, passport, proof of address |
| 3. Due Diligence | Verify property title and status | SUNARP registry certificate, tax clearances |
| 4. Preliminary Contract | Sign promise of sale agreement | Property title, municipal tax clearance |
| 5. Final Contract | Notarized public deed signing | All previous documents plus habitability certificate |
| 6. Registration | Register ownership with SUNARP | Notarized deed, proof of tax payments |
| 7. Tax Compliance | Pay transfer taxes and fees | Purchase contract, tax payment receipts |
Do Americans need to hire a lawyer or notary to make the purchase legally valid?
A notary is mandatory for legal property transfers in Peru, while hiring a lawyer is highly recommended but not strictly required.
The notary plays a crucial role in formalizing the property transfer through the public deed, which must be notarized to be legally valid. Notary fees typically range from 0.5% to 1% of the property purchase price.
While not legally mandated, hiring an independent local lawyer is strongly advised for several reasons. Lawyers conduct essential due diligence, verify property titles, check for liens or encumbrances, and review all contracts before signing.
Many Americans have encountered problems by relying solely on real estate agents or sellers' representatives without independent legal counsel. Common issues include incomplete title transfers, undisclosed debts, or properties that don't meet legal requirements for foreign ownership.
Legal fees for property purchases typically range from $1,000 to $3,000 depending on the property value and complexity, representing a small investment for significant protection against costly mistakes.
What are the taxes and ongoing fiscal obligations for Americans who own property in Peru?
Americans who own property in Peru face several tax obligations both at purchase and annually thereafter.
The property transfer tax is 3% of the purchase price, paid by the buyer at closing. This is in addition to notary fees, registration costs, and other closing expenses that typically add another 1-2% to the total cost.
Annual property taxes in Peru use a progressive rate structure starting at 0.2% for properties valued up to 15 UIT (approximately $80,250 as of September 2025). Higher-value properties face increased rates, with luxury properties potentially reaching 1% annually.
Americans earning rental income from Peruvian properties pay a fixed 5% tax on gross rental revenue. This rate applies to individuals, while corporate ownership may face different taxation structures.
Capital gains tax of 5% applies to most property sales by non-domiciled individuals, calculated on the difference between purchase and sale prices. Municipal fees and services charges vary by location but are generally modest compared to property values.
It's something we develop in our Peru property pack.
Is mortgage financing actually available to Americans in Peru, and what are the current rates and conditions?
Mortgage financing is available to Americans in Peru, but securing loans can be challenging without Peruvian residency or local income documentation.
Current mortgage rates for foreigners typically range from 7% to 11% for USD-denominated loans, significantly higher than the rates available to Peruvian residents. Sol-denominated loans often have lower rates but expose borrowers to currency exchange risk.
Most Peruvian banks require down payments of 20% to 30% for foreign buyers, with some institutions demanding up to 40%. The application process involves extensive documentation including income verification, credit history from the United States, and proof of assets.
Due to these challenges, approximately 80% of American buyers purchase properties with cash rather than financing. Those who do secure mortgages often work with international lenders or private financing companies that specialize in foreign property investments.
Alternative financing options include seller financing arrangements or partnerships with local investors, though these require careful legal structuring to protect all parties' interests.
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.
Which cities or regions in Peru are most popular among Americans for living, renting out, or investment purposes?
Lima's upscale districts of Miraflores and San Isidro lead American preferences for property investment and residence.
Miraflores offers coastal living with modern amenities, international restaurants, and direct access to beaches. Property prices range from $1,500 to $2,500 per square meter, with gross rental yields averaging 5.2% to 5.6%. The area hosts the largest American expat community in Peru and features multiple international schools.
San Isidro serves as Lima's financial district, attracting business-oriented Americans with its corporate offices, upscale shopping, and diplomatic presence. Rental yields in San Isidro range from 4.6% to 5.6%, with properties commanding premium prices due to the business district location.
Cusco appeals to Americans seeking tourism-driven investment opportunities and cultural immersion. As the gateway to Machu Picchu, Cusco generates strong rental demand from both tourists and expats. Properties typically cost $500 to $1,200 per square meter, offering higher yields around 6% due to robust tourism.
Arequipa attracts retirees and remote workers with its colonial architecture, mild climate, and significantly lower living costs. Property prices start from $400 per square meter, making it accessible for Americans seeking affordable lifestyle changes or entry-level investments.
What does the latest data say about liveability, rental yields, tourism numbers, and growth forecasts across those areas?
| City/Region | Avg. Rental Yield | Tourism Appeal | Price Growth Forecast 2025-2026 |
|---|---|---|---|
| Lima (Miraflores) | 5.2-5.6% | Business tourism, gastronomy | 3-5% annually |
| Lima (San Isidro) | 4.6-5.6% | Corporate travel, conferences | 4-6% annually |
| Cusco | 6.0% | 1.2M annual visitors to Machu Picchu | 5-7% annually |
| Arequipa | 5.5% | Cultural heritage, retiree destination | 3-4% annually |
| Coastal areas (Máncora, Huacachina) | 4.5-6.5% | Beach tourism, adventure sports | 4-6% annually |
| Trujillo | 5.0-5.8% | Archaeological sites, business | 3-5% annually |
What are the common mistakes or pitfalls Americans make when buying property in Peru, and how can they be avoided?
The most frequent mistake Americans make is failing to conduct proper title verification through SUNARP, Peru's national property registry.
Many buyers rely solely on agent statements or seller-provided documents without independent verification. This can lead to purchasing properties with outstanding liens, tax debts, or disputed ownership. Always demand a current SUNARP certificate and hire an independent lawyer to review all documentation.
Overlooking local regulations represents another significant pitfall, particularly regarding properties in coastal zones or areas with special designations. Some beachfront properties have usage restrictions or environmental protection requirements that limit development or rental activities.
Americans frequently underestimate ongoing costs beyond the purchase price. Annual property taxes, mandatory building maintenance fees, security costs, and periodic property assessments can add 2-5% annually to ownership costs. Budget for these expenses from the beginning.
Negotiating poorly due to unfamiliarity with local market conditions costs Americans significant money. Researching comparable sales, understanding seasonal market variations, and using buyer's agents familiar with foreign investor needs can save 10-15% on purchase prices.
It's something we develop in our Peru property pack.
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.
Americans can successfully invest in Peruvian real estate by understanding the legal framework and following proper procedures.
With equal ownership rights as locals and attractive yields in major cities, Peru offers compelling opportunities for both lifestyle and investment purposes.
Sources
- The LatinVestor - Peru Real Estate for Foreigners
- The LatinVestor - US Citizen Property Ownership in Peru
- Aparthotel - Foreign Real Estate Purchase in Peru
- The LatinVestor - Americans Buying Property in Peru
- Baker McKenzie - Peru Real Estate Law
- Andres Berger Garcia - Buying Property in Lima
- RGB Avocats - Legal Issues Buying Property in Peru
- Arab MLS - Foreign Property Purchase in Peru
- The LatinVestor - Lima Legal Requirements
- Global Property Guide - Peru Taxes and Costs
-Living in Peru as an American