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Foreigners can legally purchase property in Arequipa with nearly identical rights to Peruvian citizens.
The process requires obtaining a Peruvian tax ID, hiring proper legal representation, and navigating specific documentation requirements. Property prices in Arequipa average $118,690 for a two-bedroom apartment, offering rental yields around 5.5% gross, making it an attractive investment destination compared to Lima's higher costs.
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 nearly identical property rights as locals in Arequipa, with the main restriction being purchases within 50km of national borders.
The buying process involves obtaining a Peruvian tax ID, conducting due diligence, hiring legal representation, and completing notarized transactions that can be done remotely through power of attorney.
| Requirement | Details | Cost/Timeline |
|---|---|---|
| Legal Status | No residency required for purchase | Immediate eligibility |
| Tax ID (RUC) | Required from SUNAT | Free, 1-2 days |
| Notary Fees | Document authentication & registration | 0.5%-2% of purchase price |
| Transfer Tax | 3% of purchase price | Paid at completion |
| Average Property Price | 2-bedroom apartment | $118,690 |
| Rental Yield | Gross annual return | ~5.5% |
| Mortgage Rates | For qualified foreigners | 7-11% annually |
Can foreigners legally buy property in Arequipa or are there restrictions compared to locals?
Foreigners can legally purchase property in Arequipa with nearly identical rights to Peruvian citizens.
The only significant restriction applies to properties located within 50 kilometers of Peru's national borders, where foreigners must obtain special government exemption before purchasing. Since Arequipa is located well inland from any international border, this restriction does not affect most property purchases in the city.
Foreign buyers enjoy the same ownership rights as locals, including the ability to buy, sell, rent, and transfer property without additional permits or approvals. There are no restrictions on the type of property foreigners can purchase, whether residential homes, apartments, or commercial real estate.
As of September 2025, Peru maintains one of the most foreigner-friendly property ownership policies in Latin America, with no requirements for local partnerships or nominee structures that some other countries impose.
Do I need residency, a specific visa, or any special permit before I can purchase?
No residency status or specific visa is required to purchase property in Arequipa as a foreigner.
Tourists, temporary visitors, non-residents, and permanent residents all have identical property purchasing rights under Peruvian law. You can buy property whether you're visiting Peru for the first time or have lived there for years.
However, you must obtain a Peruvian tax identification number (RUC or DNI extranjero) from SUNAT, the national tax authority, to complete the transaction. This process is straightforward and does not require residency status - it can typically be completed within 1-2 business days at any SUNAT office with proper documentation.
The tax ID requirement exists purely for transaction recording and tax purposes, not as a barrier to foreign ownership. It's something we develop in our Peru property pack.
Is it necessary to be physically present in Peru to complete the purchase, or can I do it remotely?
Property purchases in Arequipa can be completed entirely remotely through a properly executed power of attorney.
If you cannot be physically present in Peru, you can grant power of attorney to a trusted representative through a Peruvian consulate in your home country. This document must be properly notarized, translated into Spanish by a certified translator, and include apostille certification according to international treaty requirements.
Your chosen representative (typically a lawyer) can then complete all aspects of the purchase on your behalf, including signing contracts, making payments, and registering the property transfer. The power of attorney should specifically authorize property transactions and include clear instructions about your purchase requirements.
While remote purchases are legally valid and commonly used, choosing your legal representative carefully is crucial since they will have significant authority over your transaction. Many foreign buyers prefer to visit Peru at least once to view properties in person before completing remote purchases.
What is the exact step-by-step process for buying property, and which documents are required?
The property purchase process in Arequipa follows a structured nine-step procedure that typically takes 30-60 days to complete.
First, work with a licensed real estate agent familiar with Arequipa's market to identify suitable properties. Next, conduct thorough due diligence by obtaining the property's Certificado de Búsqueda Catastral (land registry certificate) and Certificado Registral Inmobiliario (CRI) to verify clear title and confirm no outstanding legal claims exist.
Hire a qualified lawyer to review all documentation and draft contracts, then obtain your Peruvian tax ID (RUC) from SUNAT. Negotiate terms and sign a preliminary contract, often accompanied by a good faith deposit of 5-10% of the purchase price.
Complete the final contract signing either in person at the notary office or through your attorney using power of attorney. The notary then files the property transfer at SUNARP (the national property registry), you complete payment via documented bank transfer, and finally receive your official title deed once registration is complete.
- Property identification and selection
- Due diligence and title verification
- Legal representation hiring
- Tax ID (RUC) registration
- Preliminary contract and deposit
- Final contract execution
- Property registration filing
- Payment completion
- Title deed receipt
Do I need to hire a lawyer or notary, and what role do they play in the transaction?
Hiring both a lawyer and using a notary is strongly recommended and often considered essential for secure property transactions in Arequipa.
A lawyer provides legal advice, conducts comprehensive due diligence, reviews and drafts contracts, and protects your interests throughout the transaction. They verify that the seller has clear title, check for any outstanding debts or legal claims against the property, and ensure all documentation complies with Peruvian law.
The notary serves a different but equally important role - they verify document authenticity, witness contract signing, register the property transfer with SUNARP, and certify that all legal requirements have been met. In Peru, notaries are licensed legal professionals who must ensure transaction legality.
While technically possible to proceed without a lawyer, the risks of title problems, contract issues, or legal complications make professional legal representation a wise investment. Notary fees typically range from 0.5% to 2% of the purchase price and are often paid by the buyer, while lawyer fees are separately negotiated.
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What are the typical taxes, notary fees, registration fees, and other costs when buying and later reselling property?
Property purchase costs in Arequipa include several mandatory fees and taxes that typically total 4-6% of the property value.
| Fee Type | Rate/Amount | Paid By |
|---|---|---|
| Transfer Tax (Acabala) | 3% of purchase price | Buyer (except new developments) |
| Notary Fees | 0.5%-2% of value | Usually buyer |
| Registration Fees (SUNARP) | 1.5/1,000 of property value (min. PEN32) | Buyer |
| Due Diligence | $100-$300 | Buyer |
| Legal Fees | $500-$2,000+ | Buyer |
| Annual Property Tax | 0.2%-1% of assessed value | Owner |
| Capital Gains Tax (resale) | 5% of gain (if held <2 years) | Seller |
When purchasing directly from developers, the 3% transfer tax is typically waived, making new construction purchases slightly more cost-effective. Annual property taxes are progressive, starting at 0.2% of assessed value for properties under certain thresholds and increasing for more expensive properties.
For resales, sellers may face capital gains tax of 5% on profits if the property was held for less than two years, though this can be reduced through various legal deductions and exemptions.
Can foreigners get mortgages in Peru, what banks actually grant them, and under what rates and conditions?
Peruvian banks do provide mortgages to foreigners, but approval requirements are significantly stricter than for local citizens.
Major banks offering foreigner mortgages include BBVA Peru, Banco de Crédito del Perú (BCP), Scotiabank Peru, Interbank, and Banco de la Nación through the MiVivienda program. However, most require permanent residency status, established local credit history, and proof of stable Peruvian income.
Current mortgage rates range from 7% to 11% annually, with local currency (PEN) loans averaging 7.4% and US dollar loans slightly lower but requiring higher down payments of 25-30%. Loan terms typically extend 15-20 years for foreigners compared to 25-30 years for locals.
Foreigners with local employment, residency status, and established banking relationships have the highest approval rates. Self-employed individuals or those with foreign income face additional documentation requirements and often need to provide 6-12 months of bank statements and income verification.
It's something we develop in our Peru property pack.
What are some proven tips for increasing the chances of getting approved for financing as a foreigner?
Establishing a strong local financial presence significantly improves mortgage approval odds for foreign buyers in Peru.
- Open local bank accounts and maintain them for at least 6-12 months before applying, demonstrating financial stability and commitment to Peru
- Obtain permanent residency status if possible, as this dramatically improves approval rates and available loan terms
- Secure local employment or establish a Peruvian business to show domestic income sources that banks prefer
- Build local credit history through credit cards, small loans, or other banking products before applying for mortgages
- Prepare comprehensive documentation in Spanish, including certified translations of foreign income statements, tax returns, and employment letters
- Consider developer financing options, which sometimes offer more flexible terms than traditional bank mortgages
- Work with mortgage brokers familiar with foreigner applications who can navigate different bank requirements
- Maintain substantial savings beyond the down payment to demonstrate financial capacity
Some foreign buyers successfully leverage assets from their home countries as additional collateral, though this requires careful legal structuring and may involve international banking relationships.
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 Arequipa are most popular with foreigners, and why do they choose them?
Foreign buyers in Arequipa gravitate toward specific neighborhoods that offer the best combination of safety, amenities, and cultural appeal.
Yanahuara stands out as the most popular expat neighborhood, featuring charming colonial streets, historic architecture, and spectacular views of the Misti Volcano. This area attracts foreigners seeking authentic Peruvian culture while maintaining modern conveniences and strong property values.
Cayma offers a more modern alternative with scenic mountain views and traditional charm, typically priced about 15% below comparable Yanahuara properties. The neighborhood provides excellent value for money while still offering the lifestyle amenities that foreign residents seek.
Cerro Colorado represents a fast-growing area with new infrastructure development and more affordable entry points, making it attractive to foreign investors looking for capital appreciation potential. The area has seen increased foreign community development as infrastructure improvements continue.
The Historical Center appeals to foreigners who prioritize walkability and cultural immersion, offering easy access to museums, restaurants, and traditional Peruvian life, though some areas require careful consideration regarding noise and tourist activity levels.
Which areas currently offer the best combination of liveability, rental income potential, and long-term capital appreciation?
Central Arequipa districts, particularly Cayma and Yanahuara, currently offer the strongest combination of lifestyle quality and investment returns.
Arequipa's overall rental market generates average gross yields of 5.5%, with central districts like Cayma and Yanahuara providing the most stable rental demand and strongest long-term appreciation prospects. These areas consistently attract both local and international tenants due to their prime locations and established infrastructure.
Central Arequipa properties command higher rental rates and maintain strong occupancy levels, particularly for short-term rentals targeting business travelers and tourists. Properties in these areas typically achieve gross rental yields near 6%, outperforming suburban locations.
Cerro Colorado and other developing suburban areas offer higher potential capital appreciation due to ongoing infrastructure improvements and urban expansion, but currently generate lower rental yields due to increased competition and oversupply in some segments.
For pure investment purposes, established central neighborhoods provide more predictable returns, while emerging areas require higher risk tolerance but offer greater potential upside. It's something we develop in our Peru property pack.
How do property prices break down across different parts of Arequipa compared to other Peruvian cities and regions?
Arequipa property prices remain significantly more affordable than Lima while offering competitive rental yields and quality of life.
| Location | Average 2-Bed Apartment Price | Rental Yield |
|---|---|---|
| Lima (premium districts) | $150,000 | ~6.0% |
| Arequipa (average) | $118,690 | ~5.5% |
| Yanahuara, Arequipa | ~$140,000 | ~5.7% |
| Cayma, Arequipa | ~$119,000 | ~5.8% |
| Cerro Colorado, Arequipa | ~$95,000 | ~5.2% |
Arequipa properties typically cost 20-40% less than comparable Lima districts while maintaining reasonable rental yields. This price differential makes Arequipa particularly attractive for foreign investors seeking lower entry costs without sacrificing too much rental income potential.
Within Arequipa, premium neighborhoods like Yanahuara command prices approaching Lima levels but offer unique lifestyle benefits and stronger appreciation potential. More affordable areas like Cerro Colorado provide entry-level investment opportunities with decent growth prospects.
What are the classic mistakes and pitfalls foreigners fall into when buying property in Arequipa, and how can they be avoided?
Foreign buyers commonly make several critical errors that can result in financial losses or legal complications in Arequipa.
The most frequent mistake involves inadequate due diligence on property titles and legal status. Many foreigners skip comprehensive title searches or rely on incomplete documentation, leading to discoveries of liens, ownership disputes, or illegal construction after purchase. Always insist on complete Certificado de Búsqueda Catastral and Certificado Registral Inmobiliario documentation.
Underestimating total transaction costs represents another major pitfall. Foreign buyers often focus only on purchase price while ignoring the 4-6% in additional fees, taxes, and legal costs, creating budget shortfalls during closing. Always budget for transfer taxes, notary fees, legal representation, and ongoing property taxes.
Currency risk management failures can significantly impact investment returns. Many foreigners fail to consider peso depreciation when repatriating rental income or sale proceeds, particularly those financing purchases in foreign currencies while earning rental income in local currency.
Poor neighborhood selection based on insufficient local market research leads to properties with weak rental demand or limited appreciation potential. Avoid areas with oversupply issues or declining infrastructure without understanding local development plans and rental market dynamics.
Finally, many foreigners attempt to navigate the purchase process without proper legal representation or rely on unqualified representatives, leading to contract problems, documentation errors, or fraudulent transactions.
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 offers foreign buyers an accessible entry point into Peru's real estate market with straightforward legal processes and competitive pricing.
Success requires proper legal representation, thorough due diligence, and realistic understanding of costs, financing options, and market dynamics before committing to any property purchase.
Sources
- Life Abroad Hero - Peru Real Estate Guide
- Aparthotel - Foreign Real Estate Purchase
- F2F Cusco - Foreign Investment Guide
- The LatinVestor - Peru Property Guide
- Global Property Guide - Peru
- Escape Artist - Peru Real Estate
- Global Property Guide - Peru Rental Yields
- The LatinVestor - Peru Market Analysis