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Foreigners can buy property in Peru with the same rights as locals, except within 50km of borders.
Peru offers an accessible real estate market for foreign investors, with no residency requirements and straightforward purchase processes. The country's growing economy and affordable property prices make it an attractive destination for both investment and relocation purposes.
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 equal property rights as locals in Peru, with the main restriction being properties within 50km of borders requiring special government approval.
The purchase process involves obtaining a Peruvian tax ID, conducting due diligence through a lawyer, and completing the transaction through a notary, with total costs around 4-5% of property value.
| Aspect | Requirements/Details | Cost |
|---|---|---|
| Residency Requirement | None - tourists can buy | N/A |
| Physical Presence | Optional - can use power of attorney | POA legalization ~$200-500 |
| Tax ID (RUC) | Mandatory for all buyers | Free |
| Acquisition Tax | 3% of purchase price | 3% of value |
| Notary & Registration | Required for legal ownership | 0.5-1% of value |
| Legal Fees | Highly recommended | $1,000-2,000 |
| Annual Property Tax | Progressive based on value | 0.2-1% annually |
Can foreigners buy property in Peru in the same way as locals, or are there restrictions?
Foreigners can buy and own property in Peru with nearly identical rights as locals.
The Peruvian constitution guarantees equal property rights to foreigners, allowing them to purchase residential, commercial, and land properties throughout most of the country. Foreign buyers enjoy the same legal protections and ownership rights as Peruvian citizens.
The only significant restriction applies to properties located within 50 kilometers of Peru's international borders. Foreigners cannot acquire real estate in these border zones without obtaining special government approval from relevant authorities, implemented for national security reasons. This restriction affects areas near Ecuador, Colombia, Brazil, Bolivia, and Chile.
Outside of border zones, foreigners can purchase any type of property including apartments, houses, commercial buildings, and agricultural land. Property ownership is registered in the buyer's name at SUNARP (the national property registry), providing full legal title and ownership rights.
As of September 2025, there are no limitations on the number of properties a foreigner can own or restrictions on property size or value.
Do I need to be a resident or have a specific visa to purchase property in Peru?
No residency status or specific visa is required to purchase property in Peru.
Tourists visiting Peru on a standard tourist visa can legally buy real estate without any additional immigration requirements. The Peruvian government does not require foreign buyers to hold residency permits, work visas, or any other special immigration status to complete property transactions.
However, all foreign buyers must obtain a Peruvian tax identification number (RUC or DNI extranjero) from SUNAT (the tax authority) before completing a purchase. This process is straightforward and can be completed with a passport and basic documentation. Opening a Peruvian bank account is also highly recommended, though not legally mandatory, as it facilitates payments and ongoing property management.
Property ownership does not automatically grant residency rights in Peru. If you wish to obtain residency after purchasing property, you must apply through separate immigration processes, though property ownership can support certain visa applications as proof of ties to Peru.
It's something we develop in our Peru property pack.
Is it mandatory to be physically present in Peru to complete a property purchase, or can I do it remotely?
Physical presence in Peru is not mandatory for completing a property purchase.
Foreign buyers can complete the entire transaction remotely by appointing a representative through a consular power of attorney (POA). This legal document must be prepared and notarized at the nearest Peruvian consulate in your home country or through an equivalent notarial service.
The power of attorney must be legalized for use in Peru, typically requiring an apostille certification and official translation into Spanish by a certified translator. Once properly prepared, your appointed representative can sign contracts, transfer funds, and complete all necessary paperwork on your behalf.
Remote purchases require careful selection of your representative, usually a qualified lawyer or trusted real estate professional in Peru. The POA should specify exactly which actions your representative is authorized to perform, including signing purchase agreements, transferring ownership, and registering the property.
Many foreign buyers choose to visit Peru initially to view properties and meet their legal team, then complete the final transaction remotely to save time and travel costs.
What is the step-by-step process to buy property as a foreigner, and what documents are required?
The property purchase process in Peru follows eight essential steps with specific documentation requirements.
1. **Property Search and Negotiation**: Work with reputable real estate agents to identify suitable properties and negotiate purchase terms including price, payment schedule, and closing timeline.2. **Due Diligence and Title Verification**: Hire a qualified Peruvian lawyer to conduct comprehensive title searches, verify ownership, check for liens or debts, and obtain essential certificates including Certificado de BĂșsqueda Catastral and Certificado Registral Inmobiliario (CRI).3. **Obtain Peruvian Tax ID**: Apply for RUC (tax identification number) from SUNAT using your passport and completing required forms - this is mandatory for all property transactions.4. **Bank Account Opening**: Open a Peruvian bank account to facilitate payments and ongoing property management (recommended but not legally required).5. **Preliminary Sales Agreement**: Sign initial purchase contract with deposit payment, typically 10-20% of total purchase price.6. **Legal Documentation**: Complete final sales contract (Escritura PĂșblica) preparation with all parties' signatures notarized by authorized Peruvian notary.7. **Property Registration**: Notary registers ownership transfer with SUNARP (national property registry), officially transferring legal title to the buyer.8. **Tax and Fee Payments**: Complete all required tax payments and administrative fees to finalize the transaction.Required documents include: valid passport, Peruvian tax ID (RUC), proof of funds documentation, property title deeds, tax certificates, habitability certificates, sales contracts, and notarial documentation.
The entire process typically takes 30-60 days from initial agreement to completed registration, depending on document preparation and due diligence complexity.
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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 are essential for safe property transactions in Peru.
Lawyers play a crucial role in protecting your interests throughout the purchase process. They conduct comprehensive due diligence including title searches, verification of property ownership, checking for outstanding debts or liens, and ensuring all legal requirements are met. Peruvian real estate law is complex, and title issues are relatively common, making professional legal guidance essential for foreign buyers.
Notaries in Peru serve a different function than in many countries - they are legally required to certify property transactions and register ownership transfers with SUNARP. All property sales must be formalized through a notarial deed (Escritura PĂșblica) to be legally valid. The notary ensures all documentation is properly prepared and submitted to the property registry.
Legal fees typically range from $1,000 to $2,000 depending on transaction complexity and property value. Notary fees are borne by the buyer and usually cost between 0.5% and 1% of the purchase price, often around $1,000 or less for standard transactions.
Given Peru's history of title disputes and fraudulent transactions, attempting to purchase property without proper legal representation poses significant financial risks that far outweigh the cost of professional services.
What are the taxes, fees, and closing costs involved in buying property, and what happens when selling later?
| Cost Type | Rate/Amount | When Paid |
|---|---|---|
| Acquisition Tax (Alcabala) | 3% of purchase price | At purchase |
| Sales Tax (VAT) - New Properties | 18% on construction value | At purchase |
| Notary & Registration Fees | 0.5-1% of purchase price | At closing |
| Legal Fees | $1,000-2,000 | At purchase |
| Annual Property Tax | 0.2-1% (progressive) | Annually |
| Capital Gains Tax (Sale) | 5% on net profit | When selling |
| Rental Income Tax | 5% on gross rental income | Monthly/Annually |
Total acquisition costs typically range from 4-6% of the property purchase price, excluding the actual property cost.
When selling property later, capital gains tax applies at 5% of net profit for both resident and non-resident individuals. However, primary residence exemptions apply if you lived in the property for at least two years, or if the property was acquired before 2004.
It's something we develop in our Peru property pack.
Are mortgages available for foreigners, under what conditions, and what are the typical rates and tips to qualify?
Mortgages are available for foreigners from select Peruvian banks, though qualification requirements are more stringent than for locals.
Major banks offering foreign mortgages include Banco de CrĂ©dito del PerĂș (BCP), BBVA Continental, Scotiabank, and Interbank. These institutions prefer applicants with Peruvian residency status, though some consider non-resident applications for substantial loan amounts.
Typical mortgage terms require 20-30% minimum down payments, with interest rates ranging from 7-11% annually as of 2025 - higher than rates offered to local borrowers. Loan terms usually span 15-20 years, with some banks offering up to 25-year terms for qualified applicants.
Qualification requirements include proof of stable, verifiable income from employment or business operations, low debt-to-income ratios (typically below 30%), strong credit history in both home country and Peru, apostilled financial documents, and professional property appraisals.
Tips to improve qualification chances include: opening accounts with the target bank and maintaining financial activity for several months, considering larger down payments to reduce lender risk, obtaining Peruvian residency if planning long-term stays, and providing comprehensive documentation of income sources and financial stability.
Which areas are most popular with foreigners, and where do they typically choose to settle?
Foreign buyers concentrate primarily in Lima's upscale districts and major tourist destinations throughout Peru.
Lima attracts the majority of foreign property investment, particularly in Miraflores, San Isidro, Barranco, and Santiago de Surco. Miraflores serves as the primary expatriate hub, offering vibrant nightlife, restaurants, proximity to the ocean, and well-developed infrastructure. San Isidro appeals to business professionals and luxury buyers with its financial district location and upscale amenities.
Barranco attracts creative professionals and younger buyers with its bohemian atmosphere, art galleries, and colonial architecture. The district offers oceanfront properties and has experienced significant gentrification and property value appreciation in recent years.
Outside Lima, Cusco ranks as the second most popular destination due to its tourism industry and proximity to Machu Picchu. Foreign buyers often purchase properties for Airbnb rentals or vacation homes, capitalizing on consistent tourist demand.
Emerging destinations include Arequipa, Peru's second-largest city, attracting buyers interested in lower prices and cultural authenticity. Trujillo, Piura, and Chiclayo are gaining attention from investors seeking affordable properties in growing urban markets with development potential.
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 cities and regions currently offer the best opportunities for living, renting out, or capital appreciation?
| City/Region | Best For | 2025 Growth Projection |
|---|---|---|
| Lima (Miraflores, San Isidro) | Living, Rentals, Appreciation | 8-12% annual price growth |
| Arequipa | Rental Income, Capital Growth | 9% projected appreciation |
| Trujillo | Development, Urbanization | 5-7% annual growth |
| Cusco | Tourism, Short-term Rentals | 3-5% annual growth |
| Piura/Chiclayo | Emerging Markets, Value | 4-6% annual growth |
| Barranco (Lima) | Lifestyle, High-end Rentals | Strong cultural demand growth |
Lima's top districts offer the strongest combination of livability, rental demand, and capital appreciation potential, with foreign demand driving 8-12% annual price growth in prime areas like Miraflores and San Isidro.
Arequipa presents excellent opportunities for both rental income and capital appreciation, with projected 9% annual growth driven by urban migration and economic development. The city offers significantly lower entry costs compared to Lima while maintaining strong fundamentals.
It's something we develop in our Peru property pack.
How do property prices break down across different cities and regions in Peru?
Property prices in Peru vary significantly by location, with Lima commanding premium prices and secondary cities offering substantial value opportunities.
Lima's luxury districts including Miraflores, San Isidro, Santiago de Surco, and Barranco average $2,000-$3,500 per square meter as of September 2025. These areas represent the highest property values in Peru due to their premium locations, infrastructure, and foreign demand.
Lima's middle-income districts typically range from $1,000-$1,300 per square meter, offering more affordable options while maintaining access to the capital's amenities and employment opportunities.
Secondary cities including Arequipa, Trujillo, and Piura offer properties priced 30-50% below Lima levels, with typical ranges from $600-$1,200 per square meter depending on specific location and property quality. These markets provide excellent value for buyers seeking affordable entry points.
New residential units nationwide typically range from $80,000-$175,000 per unit, with premium Lima properties reaching $200,000+ and secondary city properties available from $50,000-$100,000. Rural and agricultural properties offer even lower entry costs, though infrastructure and amenities may be limited.
What are the common mistakes and pitfalls foreigners should avoid when buying property in Peru?
Foreign buyers should avoid several critical mistakes that can result in financial losses or legal complications.
1. **Attempting to buy near borders**: Properties within 50km of international borders require special government approval - many foreigners unknowingly target restricted areas and face legal complications.2. **Skipping title verification**: Peru's property registry system has historical issues, and unclear ownership or title disputes are common. Always hire qualified lawyers to conduct comprehensive due diligence and verify clean title.3. **Falling for real estate scams**: The unregulated nature of Peru's real estate market creates opportunities for fraud, particularly involving fake agents or duplicate property sales. Work only with licensed, verified professionals.4. **Inadequate due diligence**: Failing to check for outstanding debts, liens, encumbrances, or legal issues can result in inheriting previous owner's obligations or losing property rights.5. **Relying solely on online listings**: Property portals may contain outdated or inaccurate information. Always visit properties personally and verify market values through local professionals before making offers.6. **Legal documentation oversights**: Not adhering to proper Peruvian contract formats or failing to complete notarial registration can invalidate ownership claims and create legal vulnerabilities.7. **Inadequate professional representation**: Attempting to save money by avoiding lawyers or using unqualified representatives often results in far greater losses than professional fees would have cost.What are the fiscal implications for foreign buyers, including property tax, rental income tax, and capital gains tax?
Foreign property owners in Peru face several ongoing tax obligations that must be properly managed to avoid penalties.
Annual property tax applies to all real estate owners at progressive rates starting at 0.2% of assessed property value for lower-value properties, increasing up to 1% for higher-value properties. This tax is collected by municipal authorities and must be paid annually.
Rental income from Peruvian properties is subject to 5% tax on gross rental income for individual owners. This applies to both short-term and long-term rentals, with monthly or annual payment options available. Property management expenses may not be deducted from this gross income calculation.
Capital gains tax applies when selling property at 5% of net profit for both resident and non-resident individuals. However, primary residence exemptions apply if the seller lived in the property for at least two years prior to sale, or if the property was acquired before 2004. Non-resident entities may face higher rates up to 30% in certain circumstances.
Tax planning opportunities include using special-purpose vehicles (SPVs) for larger investments to optimize tax efficiency. All tax obligations must be reported and paid to SUNAT (the tax authority) on schedule to avoid fines and penalties.
Foreign owners should maintain detailed records of all property-related income, expenses, and transactions to ensure compliance with Peruvian tax regulations.
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 accessible real estate investment opportunities for foreigners with proper preparation and professional guidance.
Success requires thorough due diligence, qualified legal representation, and understanding of local market conditions and tax obligations.
Sources
- Baker McKenzie Global Real Estate Guide - Peru
- Global Property Guide - Peru Buying Guide
- Multilaw Real Estate Guide Peru
- Life Abroad Hero - Peru Real Estate Guide
- The LatinVestor - Peru Real Estate Tips
- Aparthotel - Foreign Real Estate Purchase Peru
- The LatinVestor - Moving to Peru Property Guide
- Global Property Guide - Peru Taxes and Costs
- Ecovis - Real Estate Investment Peru
- The LatinVestor - Peru Price Forecasts