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Foreigners can legally buy property in Arequipa with virtually the same rights as Peruvian citizens, making it one of the most accessible real estate markets in Latin America for international investors.
The Peruvian Constitution grants foreigners equal property rights, with only minor restrictions near national borders that don't affect most urban areas in Arequipa. You don't need residency status, special visas, or permits to purchase real estate, and the buying process can even be completed remotely through legal representation.
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 enjoy the same property rights as locals in Arequipa, with no residency requirements or special permits needed for purchase.
The buying process involves due diligence, signing contracts, notarized deeds, and official registration, with total costs typically ranging 5-7% of property value.
| Aspect | Details | Requirements/Costs |
|---|---|---|
| Legal Rights | Same as Peruvian citizens | No restrictions in urban areas |
| Residency | Not required | Tourist status sufficient |
| Physical Presence | Not mandatory | Power of attorney possible |
| Transfer Tax | 3% on value above threshold | Plus notary/registration fees |
| VAT | 18% on new construction | Not applicable to resales |
| Average Prices | $1,100-$1,800 per m² | Varies by district |
| Rental Yields | 5-7% gross annually | Higher in tourist areas |
Can foreigners legally buy property in Arequipa or are there restrictions compared to locals?
Foreigners have exactly the same property rights as Peruvian citizens when buying real estate in Arequipa.
Article 71 of Peru's Constitution explicitly grants foreigners equal rights to acquire, own, and dispose of property throughout the country. This constitutional protection means you face no discrimination in property ownership, inheritance rights, or future sale of your real estate compared to local buyers.
The only legal restriction applies to properties within 50 kilometers of national borders or near certain military installations. Since Arequipa is located in Peru's interior, well away from international borders, this restriction doesn't affect any residential or commercial properties in the city or surrounding metropolitan area.
You can purchase any type of property including apartments, houses, land plots, or commercial real estate without limitations on quantity or value. There are no special licenses, permits, or approvals required beyond the standard buying process that applies to all purchasers.
It's something we develop in our Peru property pack.
Do you need to be a resident or have a specific type of visa to purchase property in Peru?
No residency status, special visa, or permits are required for foreigners to buy property in Peru or Arequipa.
You can purchase real estate as a tourist on a standard visitor visa, which most nationalities receive automatically upon arrival for 90-183 days. There's no requirement to hold a work visa, investment visa, or any form of temporary or permanent residency to complete a property transaction.
However, you will need to obtain a Peruvian tax identification number (RUC) and open a local bank account to facilitate the purchase process. Tourist buyers typically need an "authorized to contract" stamp from SUNAT (Peru's tax authority), which can be obtained with your passport and basic documentation.
Some banks may require proof of income source for large transactions, but this is for anti-money laundering compliance rather than a legal restriction on foreign ownership. The documentation requirements are the same whether you're buying a $50,000 apartment or a $500,000 luxury property.
Is it mandatory to be physically present in Arequipa during the property purchase process or can it be done remotely?
Physical presence in Arequipa is not mandatory - you can complete the entire property purchase remotely through legal representation.
The most common approach for remote buyers is to grant a notarized power of attorney to a trusted representative in Peru, typically a lawyer or real estate agent. This document must be prepared at a Peruvian consulate in your home country, apostilled according to the Hague Convention, and translated into Spanish by a certified translator.
Your representative can then conduct property viewings via video calls, handle due diligence, negotiate terms, sign contracts, and complete the final notarized deed on your behalf. The power of attorney can be specific to one transaction or general for multiple property dealings.
While remote purchases are legally valid and commonly used, many buyers prefer to visit Arequipa at least once to inspect properties personally and meet with their legal team. The final deed signing must occur before a Peruvian notary, but this can be done by your proxy if you've granted proper authorization.
What are the exact steps in the buying process from offer to final registration and which documents are required?
The Arequipa property buying process follows four main stages with specific documentation requirements at each step.
| Stage | Actions Required | Key Documents |
|---|---|---|
| 1. Offer & Due Diligence | Property inspection, price negotiation, title verification | SUNARP registry certificate, property tax receipts, municipal clearances |
| 2. Purchase Agreement | Sign private contract, deposit payment (typically 10-20%) | Contrato de compraventa, proof of funds, buyer's passport/ID |
| 3. Final Documentation | Prepare all legal documents, complete remaining payments | Updated title deed, tax clearances, property valuations |
| 4. Notarization & Registration | Execute public deed, register with SUNARP | Escritura pública, registration forms, payment receipts |
| 5. Ownership Transfer | Receive official title, update property records | New registered title deed, updated property tax records |
Essential documents include your passport, Peruvian tax ID (RUC), proof of funds source, power of attorney (if buying remotely), and all property-specific documentation showing clear title and tax compliance. The seller must provide original property titles, recent SUNARP registry certificates, and municipal tax clearances.
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Do you need to hire a lawyer or notary, and what is their role in the transaction?
Hiring a notary is mandatory for property transfers in Peru, while hiring a lawyer is strongly recommended, especially for foreign buyers.
The notary's role is to execute the final public deed (escritura pública), which is the legal document that officially transfers property ownership. Notaries in Peru are public officials who verify the authenticity of documents, confirm the identity of parties, and ensure the transaction complies with legal requirements. They charge standardized fees typically ranging 0.5-1% of the property value.
A lawyer's role includes conducting due diligence on the property title, reviewing all contracts before signing, ensuring proper documentation for foreign buyers, handling the SUNARP registration process, and protecting your interests throughout the transaction. For remote purchases, lawyers also prepare and manage the power of attorney process.
Lawyer fees typically range 1-2% of the property value, but this investment is crucial for avoiding costly mistakes. Many foreign buyers who skipped legal representation have faced issues with unclear titles, unexpected liens, or documentation problems that could have been prevented.
It's something we develop in our Peru property pack.
What taxes, fees, and additional costs should a foreigner expect when buying and later selling a property?
Total buying costs typically range 5-7% of the property value, with specific taxes and fees varying based on property type and value.
Property transfer tax is 3% of the assessed value above a certain threshold (approximately $38,000 as of September 2025). New construction properties are subject to 18% VAT, while resale properties are exempt from VAT. Notary fees range 0.5-1% of property value, and SUNARP registration costs approximately 0.3% of the assessed value.
Additional costs include lawyer fees (1-2%), property inspection and appraisal fees ($200-500), title insurance if desired ($300-800), and bank transfer fees for international wire transfers (typically $50-200). If buying remotely, add costs for power of attorney preparation, apostille services, and certified translations ($500-1,500 total).
When selling, foreigners pay 5% capital gains tax on the profit (sale price minus purchase price and improvements). There's also a municipal property tax of 0.2-1% of assessed value annually, and homeowners insurance typically costs $200-600 per year depending on property value and coverage.
Are mortgages available for foreigners in Peru, under what conditions, and what interest rates and terms can you expect?
Some Peruvian banks offer mortgages to foreigners, but requirements are more stringent than for residents and many international buyers choose to pay cash.
Banks typically require 25-40% down payments from foreign buyers compared to 10-20% for locals. You'll need to demonstrate stable income through employment contracts or business ownership, provide tax returns from your home country, maintain a local bank account with minimum balances, and obtain a Peruvian credit report.
Interest rates for foreign buyers currently average 7-10% annually for peso-denominated loans, with terms typically limited to 15-20 years rather than the 30-year terms available to residents. Some banks offer US dollar loans to foreigners with rates around 6-8%, but these carry currency risk if your income is in other currencies.
Major banks that consider foreign applicants include BCP, BBVA Continental, Interbank, and ScotiaBank Peru. The approval process takes 30-60 days and requires significant documentation including apostilled income verification, bank statements, and credit history from your home country.
Which areas of Arequipa are most popular with foreigners and why?
Foreign buyers gravitate toward four main areas in Arequipa, each offering distinct advantages for different lifestyle preferences and investment goals.
1. **Historic Center (Centro Histórico)**: Most popular for its UNESCO World Heritage architecture, walkability, restaurants, and cultural attractions. Properties here range from colonial-era houses to modern apartments, with strong short-term rental potential due to tourism.2. **Yanahuara**: Preferred by expats seeking traditional Peruvian atmosphere with modern amenities. Known for its scenic views of El Misti volcano, traditional architecture, and proximity to parks and cultural sites. Properties tend to hold value well due to restricted development.3. **Cayma**: Attracts international families and professionals due to modern infrastructure, shopping centers, international schools, and upscale residential developments. Higher property values but also better appreciation potential.4. **Sachaca and Cerro Colorado**: Growing in popularity among foreign investors seeking newer construction at lower prices. These areas offer modern amenities, good access to the airport, and potential for capital appreciation as the city expands.5. **José Luis Bustamante y Rivero**: Emerging area popular with younger expats and remote workers, offering a balance of affordability, modern amenities, and good connectivity to the city center.
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 neighborhoods or districts show the best potential for living, rental income, or long-term capital appreciation?
Different Arequipa districts excel in specific investment categories, allowing you to align your purchase with your primary objectives.
For rental income, the Historic Center offers the highest yields through short-term rentals, averaging 8-12% gross annually due to constant tourist demand. Yanahuara and Cayma provide steady long-term rental income of 6-8% annually from expat professionals and affluent locals seeking quality housing.
For long-term capital appreciation, Cayma leads with 4-6% annual price growth driven by infrastructure development and limited land availability. Cerro Colorado and Sachaca show strong potential with 5-8% annual growth as these areas develop and attract middle-class residents seeking modern amenities.
For quality of living, Yanahuara and Cayma rank highest among foreign residents due to their combination of safety, amenities, cultural attractions, and proximity to services. The Historic Center appeals to those prioritizing walkability and cultural immersion, while newer developments in Sachaca suit those preferring modern comforts.
José Luis Bustamante y Rivero emerges as a balanced choice, offering moderate rental yields (5-7%), decent appreciation potential (3-5% annually), and good livability at more accessible price points for first-time foreign buyers.
What are the average property prices across different parts of Arequipa and how do they compare to other Peruvian cities?
Property prices in Arequipa vary significantly by district and property type, but generally remain more affordable than Lima while offering better value than tourist-focused cities like Cusco.
| District | Average Price per m² | Typical 2BR Apartment |
|---|---|---|
| Historic Center | $1,200-$1,600 | $80,000-$120,000 |
| Yanahuara | $1,400-$1,900 | $100,000-$150,000 |
| Cayma | $1,500-$2,000 | $120,000-$180,000 |
| Cerro Colorado | $900-$1,300 | $65,000-$95,000 |
| Sachaca | $1,000-$1,400 | $70,000-$105,000 |
| J.L. Bustamante | $1,100-$1,500 | $75,000-$115,000 |
Compared to other major Peruvian cities, Arequipa offers excellent value. Lima's premium districts like Miraflores and San Isidro average $2,500-$3,500 per m², while Cusco's tourist areas reach $2,000-$2,800 per m². Arequipa's prices provide better long-term value with similar amenities and lower living costs.
What are the current rental yields, tourism trends, and growth forecasts that impact property investment in Arequipa?
Arequipa's rental market shows strong fundamentals with diverse demand sources supporting consistent yields and growth potential.
Long-term rental yields average 5-7% gross annually for residential properties, with higher returns in areas popular with expats and professionals. Short-term rentals in the Historic Center can achieve 8-12% gross yields, though this requires active management and tourism marketing. Commercial properties typically yield 6-9% annually with longer lease terms providing stability.
Tourism trends strongly favor Arequipa as a growing destination. The city received over 1.8 million visitors in 2024, up 15% from pre-pandemic levels. Its UNESCO World Heritage status, proximity to Colca Canyon, and position as a gateway to southern Peru attractions drive consistent tourism demand. The government's infrastructure investments, including airport improvements and new highway connections, support continued tourism growth.
Growth forecasts remain positive through 2027, with property values expected to appreciate 3-5% annually based on Peru's economic stability, Arequipa's diversified economy beyond tourism (mining, agriculture, manufacturing), and increasing recognition as a liveable city for remote workers and retirees.
It's something we develop in our Peru property pack.
What are the common mistakes or pitfalls foreigners face when buying property in Arequipa and how can they be avoided?
Foreign buyers frequently encounter preventable problems that can cost thousands of dollars or derail transactions entirely.
1. **Inadequate title verification**: Many foreigners skip thorough SUNARP registry checks, missing liens, ownership disputes, or illegal constructions. Always obtain current registry certificates and hire a lawyer to verify clear title.2. **Underestimating documentation requirements**: Remote buyers often provide insufficient apostille or translation services, causing delays. Prepare all documents through official channels with certified translations well in advance.3. **Relying solely on seller's agents**: Using only the seller's representation creates conflicts of interest. Always hire your own lawyer and consider independent property inspections.4. **Inadequate budget planning**: Many buyers budget only for the purchase price, missing 5-7% in additional costs. Include transfer taxes, legal fees, notary costs, and currency transfer expenses in your budget.5. **Skipping physical inspection**: Remote buyers sometimes purchase based solely on photos or virtual tours. Either visit personally or hire a trusted local representative to conduct thorough inspections.6. **Ignoring ongoing costs**: Foreigners often overlook annual property taxes, maintenance fees, insurance, and management costs that can significantly impact investment returns.Prevention strategies include engaging reputable local lawyers early in the process, budgeting 10% above the purchase price for all costs, conducting independent due diligence, and maintaining local banking relationships for ongoing property management.
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 presents an excellent opportunity for foreign property buyers seeking accessible Latin American real estate markets with strong legal protections and reasonable prices.
The combination of constitutional property rights for foreigners, straightforward buying processes, and diverse investment options across different districts makes Arequipa an attractive destination for both lifestyle and investment purchases.