Authored by the expert who managed and guided the team behind the Peru Property Pack
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Foreigners can buy property in Peru with nearly identical rights as Peruvian citizens. Peru offers one of the most open property markets in Latin America, with minimal restrictions and straightforward procedures that make real estate investment accessible to international buyers.
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.
Peru allows foreigners to purchase property with the same rights as locals, requiring only a passport and no residency requirements.
The process involves obtaining a tax ID, conducting due diligence, signing contracts before a notary, and registering with SUNARP, with total costs around 4.5-6% of property value.
| Aspect | Requirements for Foreigners | Key Details |
|---|---|---|
| Legal Rights | Same as Peruvian citizens | Full ownership, selling, renting, inheritance rights |
| Residency Requirement | None required | Tourist visa sufficient for purchase |
| Restrictions | 50km from borders only | National security measure, requires special permission |
| Total Purchase Costs | 4.5-6% of property value | Includes transfer tax, notary, registration fees |
| Mortgage Availability | Yes, with conditions | 20-30% down payment, 6.95% average interest rate |
| Physical Presence | Not required | Can buy remotely with power of attorney |
| Popular Cities | Lima, Cusco, Arequipa | Miraflores and San Isidro most expensive districts |
Can foreigners legally buy property in Peru the same way as locals or are there restrictions?
Foreigners can legally buy property in Peru with nearly identical rights as Peruvian citizens.
The Peruvian constitution guarantees property ownership rights to foreign investors, making Peru one of the most open property markets in Latin America. Foreign buyers enjoy full ownership rights including the ability to rent, sell, mortgage, and pass property through inheritance.
Only one major restriction applies: foreigners cannot acquire property within 50 kilometers of Peru's international borders without special government permission. This national security measure affects land near borders with Ecuador, Colombia, Brazil, Bolivia, and Chile. Additionally, properties classified as "patrimonio cultural" (cultural heritage) require special approval, though this rarely impacts typical residential transactions.
As of September 2025, Peru maintains these foreign-friendly policies as part of its strategy to attract international investment and boost economic growth.
Do foreigners need to be residents or hold a specific visa to purchase real estate?
No residency or specific visa requirements exist for foreigners to purchase property in Peru.
Tourists can buy real estate immediately upon arrival using only a passport and standard tourist visa. The Peruvian government deliberately removed residency requirements to encourage foreign investment in the real estate sector.
Property ownership does not automatically grant residency rights. However, significant real estate investments of approximately $100,000 to $130,000 can help qualify for Peru's investment visa program, which may eventually lead to permanent residency. This investment threshold applies to the property value, not the purchase price alone.
It's something we develop in our Peru property pack.
Is it necessary to be physically present in Peru during the property purchase process or can it be done remotely?
Physical presence in Peru is not required to complete a property purchase.
Foreign buyers can execute the entire transaction remotely by granting a notarized power of attorney to a legal representative in Peru. This power of attorney can typically be processed through a Peruvian consulate in your home country.
The remote purchase process requires careful coordination with your Peruvian legal representative, who will handle document signing, title verification, and registration procedures on your behalf. Many international buyers successfully complete transactions without ever visiting Peru, though due diligence becomes even more critical in remote purchases.
Remote transactions have become increasingly common since 2020, with digital documentation and video conferencing facilitating international property deals.
What are the step-by-step procedures and documents required to complete a property purchase?
The property purchase process in Peru follows eight essential steps with specific documentation requirements.
| Step | Procedure | Required Documents |
|---|---|---|
| 1 | Property identification and evaluation | Property listing, location verification |
| 2 | Due diligence verification | Certificado Registral Inmobiliario (CRI) from SUNARP |
| 3 | Preliminary contract signing | Contrato de Compraventa or Contrato de Arras |
| 4 | Tax ID number acquisition | Passport, marriage certificate (if applicable) |
| 5 | Power of attorney preparation | Notarized power of attorney (for remote purchases) |
| 6 | Final public deed signing | Escritura PĂșblica before public notary |
| 7 | Tax and fee payment | Transfer tax payment (3% of appraised value) |
| 8 | Title registration | SUNARP registration for legal ownership |
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Is hiring a lawyer mandatory, or can foreigners navigate the process on their own?
Hiring a lawyer is not legally mandatory but strongly recommended for foreign property buyers in Peru.
The complexity of due diligence, legal checks, contract negotiation, and registry requirements makes professional legal assistance valuable. A Peruvian lawyer provides document verification, title checks, and ensures smooth processing through local bureaucracy.
Self-navigation is technically possible but risky, especially for foreigners unfamiliar with Peruvian legal procedures and Spanish-language documentation. Legal fees typically range from $1,000 to $3,000 depending on property value and transaction complexity.
Many successful foreign property owners credit their lawyers with preventing costly mistakes and expediting the purchase process.
Are mortgages available for foreigners in Peru, and if so, what are the typical rates, conditions, and tips to qualify?
Mortgages are available for foreigners but with stricter conditions than those offered to Peruvian citizens.
As of September 2025, average mortgage interest rates for foreigners range around 6.95%, with banks typically requiring 20% to 30% down payments. International buyers without local credit history face additional scrutiny and must provide substantial income documentation.
Major Peruvian banks offering foreign mortgages include Banco de CrĂ©dito del PerĂș (BCP), BBVA Continental, and Scotiabank Peru. Required documentation typically includes proof of income, bank statements, employment verification, and sometimes collateral in the buyer's home country.
Many foreign buyers opt for cash purchases or international financing due to the complexity of local mortgage approval processes.
What are the taxes, fees, and closing costs involved when buying a property, and what applies again at resale?
Total purchase costs in Peru typically range from 4.5% to 6% of the property's appraised value.
1. **Transfer tax**: 3% of the appraised property value2. **Notary fees**: 0.5% to 1% of property value3. **Registration fees**: 0.3% to 0.5% for SUNARP registration4. **VAT**: 18% on new construction (not applicable to resale properties)5. **Legal and agency fees**: Variable, typically 1% to 2%At resale, individual sellers pay 5% income tax on capital gains, though rates and exemptions vary based on holding periods, personal residence status, and transaction frequency. Professional property investors may face higher tax rates.
It's something we develop in our Peru property pack.
How do property prices compare across cities and regions, and what is the current breakdown per square meter?
Property prices in Peru vary significantly by location, with Lima commanding the highest values.
| City/Region | Average Property Price Range | Price per Square Meter |
|---|---|---|
| Lima (Miraflores) | $200,000 - $500,000+ | $2,500 - $4,000 |
| Lima (San Isidro) | $180,000 - $450,000+ | $2,200 - $3,800 |
| Cusco | $80,000 - $250,000 | $1,200 - $2,500 |
| Arequipa | $60,000 - $180,000 | $800 - $1,500 |
| Trujillo | $50,000 - $150,000 | $600 - $1,200 |
| Coastal Areas | $70,000 - $300,000 | $900 - $2,000 |
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 or regions are most popular among foreigners for living, investing, or retiring?
Foreign buyers gravitate toward specific areas based on lifestyle preferences and investment goals.
**Most Popular Areas for Foreigners:**1. **Lima - Miraflores**: Upscale coastal district, excellent restaurants, shopping, expat community2. **Lima - San Isidro**: Business district, high-end residential, golf courses, embassies3. **Lima - Barranco**: Bohemian neighborhood, art scene, nightlife, younger expat demographic4. **Cusco**: Historic center, tourism appeal, vacation home destination5. **Sacred Valley**: Rural tranquility, spiritual tourism, retirement community6. **Arequipa**: Colonial architecture, lower cost of living, retiree-friendlyMiraflores and San Isidro attract investment-focused buyers due to strong rental demand from business travelers and expats. Cusco appeals to vacation home buyers capitalizing on tourism revenue, while Arequipa draws retirees seeking affordability and cultural richness.
Which areas currently show the best potential for rental income, tourism demand, and long-term capital appreciation?
Lima's premium neighborhoods offer the strongest combination of rental yields and appreciation potential.
Miraflores and San Isidro generate consistent rental income from business travelers, expats, and affluent Peruvians, with annual rental yields ranging from 4% to 7%. These districts benefit from Lima's economic growth and increasing international business presence.
Cusco and the Sacred Valley show exceptional tourism-based rental potential, particularly for short-term vacation rentals. Properties near Machu Picchu access points command premium rates during peak tourism seasons from May to September.
Areas with expanding infrastructure, particularly along Lima's growing metro system, present long-term appreciation opportunities as transportation improvements increase property accessibility and desirability.
It's something we develop in our Peru property pack.
What are the common mistakes and pitfalls foreigners should avoid when purchasing property in Peru?
Foreign buyers frequently encounter avoidable mistakes that can result in financial losses or legal complications.
**Critical Mistakes to Avoid:**1. **Insufficient due diligence**: Failing to verify clear title ownership through SUNARP records2. **Ignoring unpaid taxes and liens**: Not checking for outstanding debts attached to the property3. **Border zone violations**: Attempting to buy property in restricted 50km border areas without permits4. **Skipping SUNARP registration**: Failing to complete official title registration process5. **Avoiding professional help**: Not engaging reputable notaries or lawyers for complex transactions6. **Currency exchange timing**: Not considering exchange rate fluctuations on large transactions7. **Incomplete contract terms**: Accepting vague or incomplete purchase agreementsThe most costly mistake involves purchasing property without clear title verification, which can result in loss of both property and investment. Always demand current SUNARP documentation before proceeding with any purchase.
What are the fiscal implications of owning property in Peru as a foreigner, including income taxes, property taxes, and reporting obligations abroad?
Foreign property owners in Peru face both local tax obligations and potential reporting requirements in their home countries.
Rental income from Peruvian property is subject to local income tax, with rates and deductions determined by Peruvian tax law. Annual property taxes in Peru are relatively low, typically ranging from 0.2% to 1% of assessed property value depending on location and property type.
Foreign owners must report Peruvian real estate income in their home country tax filings, though double taxation treaties may provide relief depending on citizenship and residence status. The United States, Canada, and European Union countries maintain tax treaties with Peru that can affect final tax liability.
Professional tax advice is recommended to navigate both Peruvian obligations and home country reporting requirements, particularly for high-value properties or rental income exceeding $10,000 annually.
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.
Peru offers one of Latin America's most accessible property markets for foreign investors, with minimal restrictions and straightforward procedures.
Success requires proper due diligence, professional legal assistance, and understanding of local tax obligations to ensure a smooth and profitable investment experience.
Sources
- The LatinVestor - Peru Property Investment
- Multilaw - Real Estate Guide Peru
- Life Abroad Hero - Peru Real Estate Guide
- The LatinVestor - Moving to Peru Buy Property
- RGB Avocats - Legal Issues Buying Property Peru
- The LatinVestor - Buy Land Peru
- Andres Berger Garcia - Buying Property Lima Peru
- Global Property Guide - Peru Price History