Authored by the expert who managed and guided the team behind the Peru Property Pack
Yes, the analysis of Lima's property market is included in our pack
Foreigners can legally buy property in Lima with virtually the same rights as locals, making Peru one of Latin America's most welcoming countries for international real estate investment.
The process is straightforward, requiring only a passport and Peruvian tax ID, with no residency requirements. However, foreigners face higher capital gains taxes when selling and must navigate specific legal procedures to ensure secure transactions.
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 Lima without residency requirements, but face 30% capital gains tax when selling compared to 5% for locals.
Property prices in prime neighborhoods like Miraflores range from US$1,800-US$3,000 per square meter, while emerging areas offer investment opportunities at lower prices.
| Key Aspect | Foreigners | Locals |
|---|---|---|
| Property Ownership Rights | Same as locals (with minor exceptions) | Full rights |
| Residency Required | No | N/A |
| Capital Gains Tax | 30% | 5% or exempt |
| Purchase Tax | 3% transfer tax | 3% transfer tax |
| Mortgage Access | Limited (8-12% interest) | Standard rates |
| Border Zone Restrictions | Cannot buy within 50km of borders | Can buy anywhere |
| Required Documents | Passport + Peruvian tax ID | National ID |
Can foreigners legally buy property in Lima, and what restrictions exist compared to locals?
Foreigners can legally buy, own, and sell property in Lima with virtually identical rights to Peruvian citizens, as guaranteed by Article 71 of the Peruvian Constitution.
The main restrictions affect border zones and heritage properties. Foreigners cannot purchase land within 50 kilometers of national borders without special government approval, but this doesn't impact Lima since it's not near any border. Some heritage sites and protected areas require separate approval, though this rarely affects standard residential transactions.
The most significant difference between foreigners and locals involves taxation. When selling property, foreigners face a capital gains tax of 30%, while locals typically pay only 5% or may be exempt in certain cases. All other purchase-related taxes and fees are identical for both groups.
Property ownership rights include the ability to rent, renovate, sell, and inherit properties. Foreigners can also establish property management companies and engage in real estate development projects under the same legal framework as locals.
Do foreigners from certain nationalities face different rules when buying property in Lima?
All foreign nationals are treated equally under Peruvian property law, regardless of their country of origin.
No specific nationality receives preferential treatment or faces additional restrictions when purchasing property in Lima. Whether you're from the United States, Europe, Asia, or any other region, the same legal framework applies to all international buyers.
This uniform treatment extends to all aspects of property ownership, including purchase procedures, documentation requirements, tax obligations, and selling rights. The Peruvian government maintains this equality principle to encourage international investment while ensuring consistent application of property laws.
Do you need residency or a specific visa to purchase property in Peru?
You do not need to be a resident or hold any specific visa to buy property in Lima or anywhere else in Peru.
Even tourists can purchase property legally. The only requirements are a valid passport and obtaining a Peruvian tax identification number (RUC or DNI extranjero) from SUNAT, which you can acquire without establishing residency.
Property ownership does not automatically grant residency rights, and residency is not a prerequisite for ownership. These are completely separate legal processes. Many foreigners purchase property as an investment while maintaining their primary residence in their home country.
It's something we develop in our Peru property pack.
Is physical presence in Peru required to complete a property purchase?
Physical presence in Peru is not mandatory to complete a property purchase, though it can simplify the process.
You can execute the entire transaction remotely by granting a power of attorney to a representative or lawyer in Peru. This power of attorney must be notarized at a Peruvian consulate in your home country and must clearly specify the property details, purchase price, and scope of authority granted to your representative.
Remote purchases require careful documentation and a trusted local representative. Your attorney or representative will handle property viewings via video calls, document verification, contract negotiations, and the final closing procedures. All legal documents must be properly translated and apostilled according to international treaty requirements.
Many foreigners successfully complete purchases remotely, particularly for investment properties or when relocating to Lima. However, visiting the property and meeting your legal team in person provides additional security and confidence in your investment decision.
Don't lose money on your property in Lima
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 is the complete step-by-step process for buying property in Lima?
The property buying process in Lima follows a structured legal framework that typically takes 30-60 days to complete.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Property Search | Find property and negotiate terms | Variable |
| 2. Preliminary Contract | Sign Minuta de Compra-Venta | 1-2 days |
| 3. Due Diligence | Verify title, debts, liens, taxes | 5-10 days |
| 4. Tax ID Registration | Obtain RUC or DNI extranjero | 1-3 days |
| 5. Legal Documentation | Prepare Escritura PĂşblica | 3-5 days |
| 6. Notarization | Execute notarized sales deed | 1 day |
| 7. Payment & Registration | Transfer funds, register with SUNARP | 3-7 days |
| 8. Post-Purchase | Update utilities, municipal records | 5-10 days |
Is hiring a lawyer mandatory for foreigners, and what role do they play?
While hiring a lawyer is not legally mandatory for foreigners, it is highly recommended and considered essential for a secure transaction.
A qualified Peruvian lawyer conducts comprehensive due diligence, verifies property titles, reviews all contracts, ensures legal compliance, and protects you from fraud and common pitfalls. They are especially crucial if you're purchasing remotely using a power of attorney, as they become your eyes and ears on the ground.
Lawyers typically charge 1-2% of the property value for their services. This includes title verification, contract drafting and review, coordination with notaries and registrars, tax compliance guidance, and post-purchase support. They also handle translation of legal documents and ensure all foreign documentation meets Peruvian legal requirements.
The investment in legal representation often pays for itself by preventing costly mistakes, identifying potential issues before they become problems, and ensuring your property rights are properly secured and registered.
What taxes, fees, and additional costs should foreigners expect when buying and selling property?
Property purchase costs in Lima typically range from 5-8% of the property value, with several mandatory fees and taxes.
The primary purchase tax is a 3% transfer tax paid by the buyer. Registration fees and notary costs add another 1-2% of the purchase price. Legal fees typically cost 1-2%, while real estate agent commissions range from 3-5% (usually paid by the seller). Foreign buyers may also incur translation and apostille fees for international documents.
When selling, foreigners face a 30% capital gains tax on the profit, significantly higher than the 5% rate for locals. However, certain deductions are possible, and some buyers structure purchases through corporate entities to optimize tax obligations.
Ongoing costs include annual property taxes (typically 0.2-1% of assessed value), condominium maintenance fees for apartment buildings, and rental income tax if you lease the property. Insurance, utilities, and municipal services add to annual operating expenses.
Can foreigners obtain mortgages in Peru, and what are the typical conditions?
Foreigners can obtain mortgages in Peru, but the process is challenging and typically requires local income or substantial financial documentation.
Most Peruvian banks require proof of local income, employment, or significant assets within Peru. Interest rates for foreign borrowers typically range from 8-12%, higher than rates for local borrowers. Loan-to-value ratios are often limited to 70-80% for foreigners, requiring larger down payments.
Documentation requirements include proof of income from your home country, bank statements, credit reports, employment verification, and sometimes a local guarantor. The approval process can take 60-90 days and may require multiple bank visits.
Many foreigners find it easier to secure financing from banks in their home countries or pay cash for faster, simpler transactions. Alternative financing through developer financing programs or private lenders may also be available for certain properties.
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 neighborhoods in Lima are most popular with foreigners?
Miraflores leads as the most popular neighborhood among foreigners, offering beachfront location, modern amenities, and strong tourist infrastructure.
San Isidro ranks second for its upscale business district atmosphere, embassy presence, and corporate housing demand. The area attracts expatriate executives and diplomatic staff seeking secure, high-quality residential options with excellent connectivity to Lima's financial center.
Barranco appeals to younger foreigners and artists with its trendy, bohemian character, vibrant nightlife, and growing cultural scene. La Molina draws families for its suburban feel, international schools, and shopping centers. Santiago de Surco offers a balance of safety, amenities, and relative affordability.
These neighborhoods provide infrastructure that foreigners expect: reliable utilities, security systems, proximity to international restaurants and services, and established expatriate communities. They also offer the best potential for rental income from other foreigners and tourists.
Which areas offer the best combination of livability, rental income, tourism demand, and capital appreciation?
Miraflores, San Isidro, and Barranco consistently deliver the strongest performance across all four investment criteria.
Miraflores excels in tourism demand with its coastal location, shopping centers, and restaurant scene, generating strong short-term rental income. Property values have shown steady appreciation due to limited supply and consistent international demand. The area offers excellent livability with modern infrastructure, safety, and amenities.
San Isidro provides stable long-term rental income from corporate tenants and embassy staff, with lower vacancy rates but potentially lower yields than tourist-focused properties. Capital appreciation remains strong due to its prime business district location and limited development opportunities.
Emerging districts like Magdalena, Pueblo Libre, and Surquillo offer compelling opportunities for capital appreciation at lower entry prices. These areas are experiencing gentrification and infrastructure improvements that could drive significant value increases over the next 5-10 years.
It's something we develop in our Peru property pack.
What is the current breakdown of property prices across Lima and other regions?
As of September 2025, Lima's prime neighborhoods command premium prices, with significant variations across districts and property types.
| Area | Price Range (USD/m²) | Market Characteristics |
|---|---|---|
| Miraflores | $1,800 - $3,000 | Premium locations up to $4,000/m² |
| San Isidro | $2,000 - $3,500 | Business district premium |
| Barranco | $1,500 - $2,500 | Artistic district, growing demand |
| La Molina | $1,000 - $2,000 | Suburban family housing |
| Santiago de Surco | $1,000 - $2,000 | Mixed residential/commercial |
| Cusco | $800 - $1,500 | Tourist market, historic center |
| Arequipa | $800 - $1,500 | Second largest city |
What are the most common mistakes foreigners make when buying property in Lima?
The most critical mistake is skipping due diligence, which can result in purchasing properties with hidden debts, title issues, or legal complications.
1. **Inadequate legal representation** - Using unlicensed or inexperienced lawyers who fail to identify potential problems2. **Confusing property ownership with residency rights** - Assuming property purchase grants immigration benefits3. **Buying in restricted zones** - Purchasing near borders or protected areas without proper approvals4. **Poor document translation** - Using non-certified translators for critical legal documents5. **Ignoring tax obligations** - Failing to understand ongoing property taxes and capital gains implications6. **Inadequate seller verification** - Not confirming the seller's legal authority to sell the property7. **Rushing the process** - Skipping proper inspection periods and legal review timeframesPrevention strategies include engaging qualified legal representation early, conducting comprehensive due diligence, using certified translators for all documents, verifying all seller credentials, and taking adequate time for proper review and inspection processes.
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.
Lima's real estate market offers foreigners exceptional opportunities with relatively few legal barriers, making it one of Latin America's most accessible property markets.
Success depends on proper legal guidance, thorough due diligence, and understanding the tax implications, particularly the higher capital gains rates for foreign sellers.
Sources
- Andres Berger Garcia - Buying Property in Lima Peru
- The LatinVestor - Peru Real Estate for Foreigners
- Aparthotel - Can Foreigners Buy Real Estate in Peru
- Life Abroad Hero - Peru Real Estate Guide
- The LatinVestor - Moving to Peru Buy Property
- Multilaw - Real Estate Guide Peru
- Global Property Guide - Peru Price History
- Ecovis - Real Estate Investment in Peru