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Property taxes in Lima are based on a progressive system where rates increase with higher property values. The annual property tax (Impuesto Predial) ranges from 0.2% to 1.0% of the assessed value, with most apartment owners paying between S/ 600 to S/ 3,000 annually depending on size and location.
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Lima's property tax system uses a progressive rate structure based on assessed values, with rates from 0.2% to 1.0% annually.
Total annual tax burden including municipal fees typically ranges from S/ 1,200 to S/ 3,100 for most apartments.
| Apartment Size | Estimated Value | Annual Property Tax | Total with Municipal Fees |
|---|---|---|---|
| 50 m² | S/ 300,000 | S/ 600 | S/ 1,200 - S/ 1,500 |
| 80 m² | S/ 500,000 | S/ 1,000 | S/ 1,900 - S/ 2,200 |
| 120 m² | S/ 800,000 | S/ 1,600 | S/ 2,800 - S/ 3,100 |
| Early Payment Discount | 5-10% | Available Q1 | Varies by district |
| Payment Due Date | March 31 | Annual | Plus municipal fees |
| Reassessment | Annual | By municipality | Notification sent |
| Transfer Tax | 3% of sale price | First 10 UIT exempt | One-time fee |
What's the current property tax rate for residential apartments in Lima?
As of September 2025, Lima applies a progressive property tax system with rates that increase based on your apartment's assessed value.
The annual property tax (Impuesto Predial) uses three tax brackets measured in UIT (Unidad Impositiva Tributaria) units. For 2025, one UIT equals S/ 5,150.
Properties valued up to 15 UIT pay 0.2% annually. Properties valued between 15-60 UIT pay 0.6% on the amount exceeding 15 UIT. Properties valued over 60 UIT pay 1.0% on the amount exceeding 60 UIT.
Most apartments in Lima fall within the first two brackets, meaning you'll pay between 0.2% and 0.6% of your property's assessed value annually.
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How is property tax calculated in Lima - market value or assessed value?
Lima's property tax calculation is based on the government's assessed value, not the current market value of your apartment.
The assessed value, called "cadastral value," is determined by municipal authorities using a standardized formula that considers location, property type, construction materials, and age of the building.
Cadastral values typically represent 70-80% of actual market prices, which means you'll pay less tax than if it were based on full market value.
The municipality updates these assessed values annually and sends notifications to property owners about any changes to their property's tax valuation.
What's the average assessed value per square meter for Lima apartments?
The assessed value per square meter varies significantly across Lima's districts, reflecting the city's diverse real estate landscape.
In upscale districts like Miraflores and San Isidro, market prices range from USD 2,000-3,500 per square meter, with assessed values typically 20-30% lower.
Lima's average market price sits around USD 1,500 per square meter, while emerging and affordable districts range from USD 800-1,500 per square meter.
For tax calculation purposes, expect assessed values to be roughly 70-80% of these market prices, though exact figures aren't publicly disclosed by district.
How often are property values reassessed for tax purposes in Lima?
Lima municipalities conduct annual reassessments of all residential properties for tax purposes.
Property owners receive official notifications each year if their assessed value changes from the previous year.
The reassessment process considers factors like neighborhood development, infrastructure improvements, and general market trends in each district.
Annual reassessment ensures tax calculations reflect current property conditions, but the gradual adjustment system prevents dramatic year-over-year tax increases.
What are typical annual property tax amounts for different apartment sizes?
| Apartment Size | Approximate Value | Tax Bracket | Annual Property Tax |
|---|---|---|---|
| 50 m² | S/ 300,000 | Under 15 UIT | S/ 252 - S/ 300 |
| 65 m² | S/ 390,000 | Under 15 UIT | S/ 350 - S/ 450 |
| 80 m² | S/ 500,000 | Under 15 UIT | S/ 400 - S/ 600 |
| 100 m² | S/ 650,000 | 15-60 UIT range | S/ 650 - S/ 900 |
| 120 m² | S/ 800,000 | 15-60 UIT range | S/ 800 - S/ 1,200 |
| 150 m² | S/ 1,000,000 | 15-60 UIT range | S/ 1,200 - S/ 1,600 |
Are there fixed administrative fees added to property tax bills?
Lima's annual property tax bills don't include fixed administrative fees or processing charges.
However, when purchasing property, buyers must pay the Alcabala transfer tax of 3% of the sale price, with the first 10 UIT exempt from this tax.
Municipal utility and maintenance fees (arbitrios) are billed separately from property tax and cover services like trash collection, street lighting, and public space maintenance.
These arbitrios fees vary by district and property size but are distinct charges, not administrative add-ons to your property tax.
What early payment discounts are available for property tax?
Many Lima districts offer early payment discounts ranging from 5% to 10% for property owners who pay their annual tax in the first quarter.
The most common discount is 5-10% when payment is made before March 31st, though specific percentages and deadlines vary by municipality.
Some districts extend the early payment period through April or offer smaller discounts for payments made in the second quarter.
Check with your specific district municipality for exact discount rates and deadlines, as these incentives change annually and aren't uniform across Lima.
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What penalties apply for late property tax payments?
Late property tax payments in Lima incur escalating penalties and interest charges that increase monthly.
Penalties typically start as a percentage of the unpaid tax amount and compound over time, making delayed payments significantly more expensive.
Extended non-payment can result in enforcement actions including property liens, legal proceedings, and potential forced sale procedures.
The exact penalty rates vary by district, but most municipalities apply both a fixed penalty fee and monthly interest charges on outstanding balances.
What's the payment schedule and due dates for Lima property tax?
Lima property tax is paid annually with the standard due date of March 31st each year.
Most apartment owners pay the full annual amount in one payment, though some districts allow quarterly installment options.
Property tax bills are typically issued in January, giving owners approximately three months to arrange payment and potentially qualify for early payment discounts.
Mark March 31st on your calendar as the critical deadline to avoid late payment penalties and maintain good standing with municipal authorities.
What additional municipal taxes affect Lima apartment owners?
Lima apartment owners pay Arbitrios Municipales in addition to standard property tax, covering essential municipal services.
Arbitrios fees fund trash collection, street lighting, public space maintenance, and local infrastructure upkeep, billed separately from property tax.
These municipal charges vary by district and property characteristics, typically ranging from S/ 600 to S/ 1,500 annually for most apartments.
Some districts also charge special assessments for major infrastructure projects or neighborhood improvements, though these are less common and project-specific.
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What's the total annual tax burden for apartments at different price points?
The total annual tax burden combines property tax and municipal fees, varying significantly based on apartment value and location.
| Apartment Value | Property Tax | Municipal Fees (Arbitrios) | Total Annual Burden |
|---|---|---|---|
| S/ 300,000 | S/ 600 | S/ 600 - S/ 900 | S/ 1,200 - S/ 1,500 |
| S/ 500,000 | S/ 1,000 | S/ 900 - S/ 1,200 | S/ 1,900 - S/ 2,200 |
| S/ 800,000 | S/ 1,600 | S/ 1,200 - S/ 1,500 | S/ 2,800 - S/ 3,100 |
| S/ 1,200,000 | S/ 2,400 | S/ 1,500 - S/ 2,000 | S/ 3,900 - S/ 4,400 |
| S/ 1,500,000 | S/ 3,000 | S/ 2,000 - S/ 2,500 | S/ 5,000 - S/ 5,500 |
Are there tax exemptions for first-time buyers, retirees, or residents?
First-time buyers receive Alcabala transfer tax exemptions for the first 10 UIT of the purchase price, but no annual property tax reductions.
Retirees may qualify for property tax reductions or exemptions in some districts, especially if the apartment is their primary residence and falls below certain value thresholds.
Peruvian residents and non-residents pay identical property tax rates, though residents may access certain deduction programs not available to foreign owners.
Each district administers its own exemption programs, so check with your local municipality about specific qualification requirements and application procedures.
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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.
Understanding Lima's property tax system is essential for making informed investment decisions in Peru's capital.
With progressive rates, annual assessments, and additional municipal fees, budgeting for total tax obligations ensures successful property ownership in Lima.
Sources
- Global Property Guide - Peru Taxes and Costs
- The Latinvestor - Lima Property Taxes and Fees
- The Latinvestor - Lima Real Estate Market Data
- The Latinvestor - Lima Average Apartment Prices
- NBER Working Paper - Property Tax Systems
- Greenback Tax Services - Expat Taxes for Peru
- Global Property Guide - Peru Price History
- RGB Avocats - Real Estate Transaction Tax in Peru