How to buy property in Lima as a foreigner?

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lima. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinvestOR, we explore the Peruvian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lima, Cusco, and Arequipa. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Lima and are there any restrictions compared to locals?

Foreigners can legally buy property in Lima with virtually identical rights to Peruvian citizens.

The main restriction applies to properties within 50 kilometers of Peru's national borders, where foreigners need special government authorization. This does not affect Lima purchases since the capital is located well inland from any international boundary.

Additional limitations involve properties classified as "patrimonio cultural" (cultural heritage sites), which require extra permits regardless of buyer nationality. These restrictions rarely impact standard residential transactions in Lima's main districts.

Foreign buyers enjoy full ownership rights, including the ability to sell, rent, or transfer the property without additional restrictions. Property ownership does not automatically grant residency status, but it can strengthen certain visa applications such as the Rentista or Investment Visa for properties valued above $100,000.

It's something we develop in our Peru property pack.

What residency or visa requirements apply if I want to buy as a foreigner?

No residency or visa is required to purchase property in Lima as a foreigner.

Even tourists on short-term visits can legally buy real estate. However, you will need to obtain a Peruvian tax identification number (RUC) and open a local bank account to complete the transaction.

While property ownership doesn't automatically grant residency rights, it can support certain visa applications. The Rentista Visa requires demonstrating monthly passive income of at least $1,000, while property investments above $100,000 can strengthen Investment Visa applications when combined with business activity requirements.

Some buyers pursue temporary or permanent residency for other benefits, such as better mortgage terms and reduced capital gains taxes when selling. Residency applications require separate documentation and processing through Peru's immigration authorities.

Do I need to be physically present in Peru to complete the purchase process?

Physical presence is not required to buy property in Lima.

The entire purchase process can be completed remotely through a power of attorney arrangement. You must have the power of attorney document notarized at a Peruvian consulate in your home country, then apostilled according to international treaty requirements.

Your designated representative or lawyer can then sign all documents and complete the transaction on your behalf. This includes signing the preliminary contract, attending the notarized deed execution, and handling the property registration process.

Remote purchases require careful vetting of your legal representative and clear communication about all transaction details. Many foreign buyers visit Lima initially to view properties and meet their legal team, then complete the purchase remotely.

What is the step-by-step process to buy property in Lima, and which documents will I need?

The Lima property purchase process follows these key stages:1. **Property selection and reservation** - Sign reservation agreement and pay 1-2% deposit2. **Due diligence period** - Obtain Certificado Registral Inmobiliario to verify title status3. **Legal setup** - Get RUC tax number and open local bank account4. **Preliminary contract** - Sign Minuta de Compra-Venta detailing all terms5. **Notarized deed execution** - Complete Escritura Pública before Peruvian notary6. **Property registration** - Register deed with SUNARP to obtain legal title7. **Final payment and possession** - Transfer remaining funds and receive keys

Required documents include your passport, RUC tax identification number, proof of funds documentation, and power of attorney if buying remotely. All foreign documents must be apostilled and officially translated into Spanish.

The process typically takes 30-60 days from reservation to final registration, depending on due diligence complexity and financing arrangements.

Is it mandatory to hire a lawyer, and what role do they play in the transaction?

Hiring a lawyer is not legally mandatory but strongly recommended for foreign buyers.

Lawyers provide essential services including title verification, legal status checks, contract drafting and translation, and property registration with SUNARP. They help identify potential issues such as existing liens, boundary disputes, or irregular documentation.

Legal representation becomes particularly important for remote purchases, complex financing arrangements, or properties with development restrictions. Lawyers also ensure compliance with tax obligations and proper fund transfer procedures.

Legal fees typically range from 1-1.5% of the purchase price. The investment provides significant protection against fraud, title irregularities, and procedural errors that could result in much larger losses.

What taxes, fees, and extra costs should I expect when buying and later reselling a property?

Cost Item	Amount	Who Pays
Transfer Tax (Alcabala)	3% of purchase price	Buyer
Notary Fees	0.10-0.25% of price	Buyer
Legal Fees	1-1.5% of price	Buyer
VAT (new construction)	18% of price	Buyer (new properties only)
Real Estate Agent Commission	3-5% of price	Seller (on resale)
Capital Gains Tax (foreigners)	30% of profit	Seller (on resale)
Registration and Miscellaneous	Minor fees	Buyer

Can foreigners get a mortgage in Peru, and if so, what are the rates, conditions, and tips to improve approval chances?

Foreigners can obtain mortgages from Peruvian banks, though with stricter requirements than locals.

Major banks like BCP, Interbank, and Scotiabank offer foreign buyer programs requiring 20-30% down payments and demonstrable income sources. Current mortgage rates range from 7-11% annually for terms up to 20 years, depending on your residency status and financial profile.

Non-residents face significantly more restrictive terms and higher interest rates. Banks require comprehensive income documentation, often including tax returns from your home country and proof of employment or business ownership.

To improve approval chances, establish Peruvian residency, build local banking relationships through deposits and transactions, and maintain substantial cash reserves beyond the down payment. Some buyers use international private banking relationships to secure better terms.

It's something we develop in our Peru property pack.

Which neighborhoods in Lima are most popular with foreigners, and why?

Foreign buyers concentrate in several key Lima districts for specific lifestyle and investment reasons:- **Miraflores** - Most popular expat destination with modern amenities, international schools, seafront parks, and strong rental markets- **San Isidro** - Lima's financial district offering upscale residential areas, lush parks, and established expatriate communities - **Barranco** - Trendy artistic quarter with vibrant nightlife, colonial architecture, and growing tourism appeal- **Santiago de Surco** - Suburban family-friendly area with good schools, shopping centers, and quieter residential environment- **La Molina** - Modern planned district popular with families seeking safety, green spaces, and proximity to international schools

These districts offer superior infrastructure, security, and services compared to other Lima areas. They also provide the strongest resale markets and rental demand from both local and international tenants.

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 areas have the best prospects for living quality, rental income, and capital appreciation based on the latest data?

Miraflores and San Isidro lead Lima districts for overall investment performance and livability.

These prime districts offer gross rental yields of 5-7% annually, driven by consistent demand from expatriates, business travelers, and affluent locals. Their proximity to business centers, cultural attractions, and coastal amenities supports both short-term and long-term rental markets.

Barranco shows strong potential for capital appreciation due to ongoing gentrification and tourism growth. The district's cultural appeal and restaurant scene attract younger professionals and international visitors, supporting both traditional and Airbnb rental strategies.

Surco and La Molina provide stability and moderate growth, appealing to families and long-term residents. These areas benefit from infrastructure improvements and development of commercial centers, though they offer lower rental yields than central districts.

Safety rankings, tourism statistics, and infrastructure investment patterns consistently favor these five districts over other Lima areas for foreign investment purposes.

What's the current breakdown of property prices across Lima's districts and nearby regions?

Lima property prices vary significantly by district and proximity to key amenities as of September 2025.

Premium coastal districts command the highest prices, with Miraflores ranging $2,000-$3,500 per square meter and San Isidro reaching $2,500-$4,000 per square meter for luxury developments. Barranco properties typically cost $2,000-$3,000 per square meter, reflecting the area's artistic appeal and tourism potential.

Suburban family-oriented districts offer more affordable options, with Santiago de Surco and La Molina properties priced $1,400-$2,500 per square meter depending on specific location and building quality.

Secondary districts including Pueblo Libre, Magdalena, and Jesús María range $700-$1,500 per square meter, though these areas have limited appeal for foreign buyers due to infrastructure and security considerations.

Oceanfront properties, new construction projects, and buildings with premium amenities command price premiums of 20-40% above district averages. Properties near Lima's financial district or major transportation hubs also carry location premiums.

What are the most common mistakes or pitfalls foreigners face when buying property in Lima?

Foreign buyers frequently encounter these costly errors in Lima's property market:1. **Inadequate title verification** - Failing to conduct thorough due diligence on property ownership, existing liens, or legal disputes2. **Skipping legal representation** - Attempting to navigate complex Peruvian real estate law without qualified local counsel3. **Market research failures** - Overpaying due to limited knowledge of district pricing and comparable sales data4. **Tax miscalculations** - Underestimating transaction costs and ongoing tax obligations, particularly the 30% capital gains tax5. **Banking compliance issues** - Using improper fund transfer methods or failing to establish required local banking relationships

Additional pitfalls include purchasing properties with building code violations, overlooking homeowners association fees and restrictions, and failing to understand rental market dynamics in their chosen district.

It's something we develop in our Peru property pack.

What are the fiscal implications for foreigners, including income tax on rental income and capital gains tax on sale?

Foreign property owners face specific tax obligations that differ significantly from Peruvian residents.

Rental income is subject to Peruvian income tax rates ranging from 5-30% depending on your total income and tax structure. Many foreign owners establish Peruvian corporations to optimize tax treatment and take advantage of business expense deductions.

Capital gains tax presents the most significant fiscal burden for foreigners, with a flat 30% rate applied to sale profits. Peruvian residents may qualify for reduced rates or exemptions under certain conditions, making residency status financially advantageous for long-term investors.

Annual property taxes are relatively modest and calculated based on local assessments. Foreign owners must also ensure compliance with tax obligations in their home countries, though double taxation treaties may provide some relief.

Professional tax planning becomes essential for substantial investments, particularly regarding corporate structures, residency timing, and exit strategies to minimize overall tax burdens.

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.

Sources

1. The LatinvestOR - Moving to Peru: Buy Property Guide
2. Andres Berger Garcia - Buying Property in Lima Peru
3. Life Abroad Hero - Peru Real Estate Guide for Foreigners
4. The LatinvestOR - Peru Real Estate Foreigner Tips
5. The LatinvestOR - Peru Real Estate for Foreigners
6. Armenian Lawyer - Peru's Rentista Program 2025
7. RGB Avocats - Legal Issues Buying Property in Peru
8. Aparthotel - Can Foreigners Buy Real Estate in Peru
9. Global Property Guide - Peru Buying Guide
10. Expat Focus - Peru Property Financing