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Moving to Peru and purchasing property as a foreigner is completely legal and surprisingly straightforward. Peru offers equal property rights to foreigners as to citizens, with only minor restrictions near national borders. The process typically takes 2-3 months from start to finish, with costs ranging from 4.5% to 6% of the property value in taxes and fees.
Lima's premium districts like Miraflores and San Isidro attract the most foreign investment, while Cusco appeals to those seeking tourism-related properties near Machu Picchu. As of June 2025, foreign buyers continue to benefit from Peru's stable legal framework and growing real estate market, particularly in areas experiencing infrastructure development like Lima's expanding metro system.
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 can buy property in Peru with the same rights as citizens, except within 50km of borders.
Total costs range from 4.5-6% of purchase price, including 3% transfer tax and 18% VAT on new construction.
| Aspect | Requirements | Timeline/Cost |
|---|---|---|
| Legal Status | No residency required | Immediate eligibility |
| Popular Areas | Lima (Miraflores), Cusco, Arequipa | $115,000-$230,000 average |
| Purchase Process | Power of attorney if remote | 2-3 months total |
| Financing | 20-30% down payment required | 6.95% average interest rate |
| Documentation | Tax ID, title verification | Translation/legalization required |
| Legal Protection | SUNARP public registry | Strong buyer protection |
| Total Costs | Transfer tax, VAT, notary fees | 4.5-6% of purchase price |
Where do foreigners usually buy property in Peru and why do they choose those areas?
Foreign buyers concentrate their investments in three main regions of Peru, each offering distinct advantages for different investment strategies.
Lima dominates foreign property purchases, particularly in the upscale districts of Miraflores, San Isidro, and Barranco. Miraflores apartments averaging $230,000 for 60 square meters attract buyers seeking proximity to business hubs, coastal amenities, and established infrastructure. San Isidro appeals to those prioritizing luxury amenities and corporate headquarters locations, while Barranco draws investors interested in the city's cultural and artistic renaissance.
Cusco represents the second most popular destination for foreign buyers, driven primarily by tourism potential near Machu Picchu. Studio apartments in historic Cusco average $115,000 for 30 square meters, offering strong rental yields from the constant flow of international tourists. The UNESCO World Heritage status ensures property value stability and regulatory protection against overdevelopment.
Arequipa, particularly in the Yanahuara and Cayma districts, attracts foreigners seeking value investments with growth potential. New apartments averaging $115,000 for 87 square meters provide significantly more space per dollar compared to Lima. The city's projected 9% property value growth through 2025, combined with its colonial architecture and growing business sector, makes it increasingly attractive to foreign investors.
It's something we develop in our Peru property pack.
Can foreigners legally buy property in Peru and are there any restrictions on what they can or can't purchase?
Foreigners enjoy virtually identical property ownership rights as Peruvian citizens, with only one significant geographic restriction affecting border areas.
The Peruvian Constitution grants foreign nationals the same property rights as citizens for the vast majority of the country. This includes the right to own residential properties, commercial buildings, and land in fee simple ownership with full title registration. Foreign buyers can purchase apartments, houses, condominiums, and commercial properties without requiring local partnerships or shell companies.
The primary restriction applies to properties located within 50 kilometers of any national border, implemented as a national security measure. This limitation affects potential purchases near borders with Ecuador, Colombia, Brazil, Bolivia, and Chile. Properties in these zones require special government authorization, making the process significantly more complex and time-consuming.
Additionally, foreigners cannot purchase properties designated as "patrimonio cultural" (cultural heritage sites) without specific government approval. However, this rarely affects standard residential or commercial property transactions, as most heritage restrictions apply to historically significant buildings or archaeological sites.
Foreign ownership includes all associated rights such as selling, renting, mortgaging, and transferring properties through inheritance. The legal framework ensures foreign buyers have the same recourse through Peruvian courts as domestic owners, providing strong legal protection for property investments.
Do you need to be a resident or citizen to buy real estate in Peru, and is there a path to residency or citizenship through ownership?
No residency or citizenship requirements exist for purchasing real estate in Peru, though property ownership can support certain visa applications.
Tourists and non-residents can buy property immediately upon arrival in Peru using only a passport and tourist visa. The process requires obtaining a Peruvian tax identification number (RUC), which takes approximately one week and can be completed at any SUNAT office without residency requirements.
While property ownership doesn't automatically grant residency rights, it can strengthen applications for specific visa categories. The Rentista Visa allows individuals with sufficient passive income or investments to obtain temporary residency, and significant property investments can support these applications. However, the visa requires demonstrating monthly income of at least $1,000 from sources outside Peru, rather than relying solely on property ownership.
Property ownership can also support applications for the Investment Visa, designed for individuals making substantial economic contributions to Peru. Real estate investments exceeding $100,000 may qualify, particularly when combined with business activities or job creation. This visa provides a pathway to permanent residency after maintaining temporary status for required periods.
Citizenship through naturalization requires two years of continuous legal residency in Peru, regardless of property ownership. While owning property demonstrates commitment to the country and can strengthen citizenship applications, it doesn't reduce the residency requirement or provide special consideration in the naturalization process.
What are all the taxes, fees, and legal costs involved in buying property in Peru, and can you break down each one?
| Fee Type | Rate | Applied To |
|---|---|---|
| Transfer Tax | 3% of purchase price | All property transactions |
| VAT (IGV) | 18% of construction value | New construction only |
| Notary Fees | 0.3-0.5% of purchase price | Document preparation and validation |
| Registration Fees | 1% of purchase price | SUNARP title registration |
| Legal Fees | 0.5-1% of purchase price | Attorney representation (optional but recommended) |
| Property Tax (Annual) | 0.2-1% of assessed value | Ongoing ownership cost |
| Municipal Taxes | 0.1-0.3% annually | Garbage collection, street maintenance |
Is it possible to get a mortgage in Peru as a foreigner, what are the rates and conditions, and are there any tips to improve approval chances?
Foreign nationals can obtain mortgages from Peruvian banks, though requirements are stricter than for citizens and down payments are substantial.
Major banks including BBVA Continental, Scotiabank Peru, and BCP offer mortgages to foreigners with established financial profiles. Current interest rates average 6.95% for fixed-rate mortgages and 7.25% for variable rates as of mid-2025. Loan terms typically range from 15 to 20 years, shorter than the 30-year terms available to Peruvian citizens.
Foreign applicants must provide a minimum 20-30% down payment, compared to 10-15% for locals. Banks require demonstrating stable income through employment contracts, business ownership documentation, or investment portfolios. Income verification must show earnings at least four times the monthly mortgage payment, and banks prefer applicants with Peruvian bank account history of at least six months.
Approval chances improve significantly by establishing banking relationships before applying for mortgages. Opening checking and savings accounts, maintaining regular deposits, and using bank services for several months demonstrates financial stability. Providing multiple income sources, such as rental income from other properties or business profits, strengthens applications considerably.
Some banks require mortgage insurance and life insurance as loan conditions, adding 0.5-1% annually to the total cost. Foreign borrowers often benefit from working with mortgage brokers familiar with international client requirements, as they can navigate bank preferences and documentation requirements more efficiently.
Can you buy a property in Peru fully in cash, and are there advantages or disadvantages to doing so?
Cash purchases are common in Peru's real estate market and often provide significant advantages for foreign buyers seeking faster transactions.
Sellers frequently offer 5-10% price discounts for cash buyers, as it eliminates financing contingencies and reduces transaction risks. Cash deals typically close within 30-45 days compared to 60-90 days for financed purchases, allowing buyers to secure properties in competitive markets more effectively.
The elimination of mortgage-related costs saves approximately 2-3% of the purchase price in bank fees, appraisal costs, and insurance requirements. Cash buyers also avoid lengthy income verification processes and credit checks that can delay or derail financed transactions.
However, cash purchases tie up significant liquidity that could be invested elsewhere potentially generating higher returns than Peru's real estate appreciation rates. Foreign buyers lose the leverage benefits of financing, which can amplify investment returns when property values increase.
Cash buyers also forfeit potential tax advantages available to mortgage holders, including interest deductions on Peruvian tax returns for residents. Additionally, large cash transfers may trigger currency reporting requirements in buyers' home countries and Peru, requiring careful documentation for tax compliance.
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What documents and paperwork are required to complete a real estate purchase in Peru, and do they need to be translated or legalized?
Real estate transactions in Peru require specific documentation, with foreign documents needing proper translation and legalization through consular channels.
Essential documents include a valid passport, Peruvian tax identification number (RUC), and proof of funds for the purchase. Buyers must obtain a Certificado Registral Inmobiliario from SUNARP confirming the property's legal status, ownership history, and any encumbrances or liens.
The seller must provide the original property title deed, current property tax receipts, and municipal tax clearance certificates. Additional documentation includes building permits for any recent construction or renovations, condominium bylaws for apartment purchases, and utility service confirmations.
Foreign documents require apostille certification from the issuing country and official translation into Spanish by certified translators registered with Peru's Ministry of Foreign Affairs. Bank statements, income verification, and power of attorney documents must follow this process, which typically takes 2-3 weeks to complete.
For remote purchases, buyers need a notarized power of attorney executed at a Peruvian consulate, granting authority to local representatives to sign purchase documents. This document must specify the exact property address, purchase price, and scope of authority granted to the representative.
The final purchase requires execution of a notarized sales deed (escritura pública) signed before a Peruvian notary, followed by registration with SUNARP to complete the title transfer. All parties must present original identification documents during the notarization process.
Do you need to be physically in Peru to buy property, or can it be done remotely with a power of attorney or legal representative?
Property purchases can be completed entirely remotely using a properly executed power of attorney, though physical presence offers additional oversight and control.
Remote purchases require executing a power of attorney at a Peruvian consulate in the buyer's home country, granting specific authority to a trusted representative in Peru. This document must be notarized by consular officials and include detailed specifications about the property transaction, including maximum purchase price and property identification.
The power of attorney should grant authority for obtaining the tax identification number, conducting due diligence, negotiating terms, and signing the final purchase documents. It's crucial to limit the scope to specific transactions rather than granting broad financial powers, protecting against potential misuse.
Buyers typically work with established law firms or real estate agencies that provide representative services for international clients. Reputable firms like Premier Casa or Colliers International offer comprehensive remote purchase services, including document preparation, due diligence, and transaction management.
Remote buyers should establish secure communication channels with their representatives and require regular updates with photographic evidence of property inspections. Video calls during key transaction milestones, such as property inspections and document signings, provide additional verification and oversight.
While remote purchases are legally valid and commonly completed, physical presence during final document signing and property inspection provides buyers direct oversight and the ability to address last-minute issues personally. Many foreign buyers visit Peru for the closing process even when using power of attorney for preliminary steps.
How long does the whole process of buying property in Peru typically take from start to finish?
Complete property purchases in Peru typically require 2-3 months from initial offer to final title registration, with timing depending on financing and documentation complexity.
Cash purchases generally close faster, often completing within 30-45 days when all documentation is prepared efficiently. The process begins with property identification and due diligence, which takes 1-2 weeks for title verification, lien searches, and property inspections.
Financing adds 3-4 weeks to the timeline, as banks require income verification, property appraisals, and credit evaluations. Foreign buyers should begin the mortgage pre-approval process immediately upon deciding to purchase, as documentation gathering often takes longer for international applicants.
Document preparation and legalization consume significant time for foreign buyers, particularly when power of attorney execution requires consular appointments. Apostille certification and translation services typically require 2-3 weeks, though expedited services can reduce this to 5-7 business days for additional fees.
The final phase involves contract negotiation, deposit payment, and closing preparation, usually taking 1-2 weeks. SUNARP registration following the notarized sale typically completes within 7-10 business days, officially transferring title to the new owner.
Delays commonly occur due to incomplete documentation, financing complications, or title issues discovered during due diligence. Buyers can expedite the process by preparing all documents in advance, obtaining pre-approval for financing, and working with experienced local professionals familiar with foreign buyer requirements.
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.
Are real estate agents in Peru generally trustworthy, and how do you find a reliable one as a foreigner?
Peru's real estate market includes both reputable international firms and smaller local agencies, requiring careful vetting to identify trustworthy professionals.
International firms like Colliers International, Premier Casa, and Century 21 Peru maintain higher professional standards and often have English-speaking agents experienced with foreign clients. These companies typically provide comprehensive services including legal support, financing assistance, and after-sale property management.
Local agents vary significantly in professionalism and expertise, with some offering excellent market knowledge and others lacking proper credentials or ethical standards. The Peru Real Estate Agent Registry provides verification of licensed professionals, though not all practicing agents maintain current registration.
Foreign buyers should verify agent credentials, request references from previous international clients, and confirm the agency's legal registration with relevant authorities. Reputable agents provide written service agreements, maintain professional offices, and demonstrate comprehensive knowledge of legal requirements for foreign purchases.
Red flags include agents requesting upfront fees before property showings, pressuring quick decisions without proper due diligence time, or suggesting ways to circumvent legal requirements. Trustworthy agents encourage independent legal review and provide transparent information about all costs and procedures.
The most reliable approach involves working with established firms that specialize in foreign buyer services and maintain long-term reputations in the market. These agencies often provide end-to-end services and have established relationships with banks, attorneys, and other professionals necessary for successful transactions.
What are the most common mistakes and legal pitfalls foreigners face when buying property in Peru, and how can they be avoided?
Foreign buyers frequently encounter avoidable mistakes that can result in financial losses, legal complications, or delayed transactions.
Inadequate due diligence represents the most costly mistake, particularly failing to verify clear title and identify liens or encumbrances. Buyers must obtain current Certificado Registral Inmobiliario from SUNARP and verify that sellers have legal authority to transfer the property. This includes confirming that married sellers have spousal consent and that corporate sellers have proper board authorization.
Border proximity violations occur when buyers unknowingly purchase properties within the 50-kilometer restricted zone without proper government authorization. This mistake can result in forced sales or lengthy legal proceedings, making geographic verification essential before any purchase commitment.
Financing miscalculations frequently surprise foreign buyers who underestimate total transaction costs or overestimate their mortgage approval chances. Many buyers fail to account for the 18% VAT on new construction or miscalculate annual property tax obligations, leading to budget shortfalls during the purchase process.
Documentation errors include failing to properly translate and legalize foreign documents, resulting in transaction delays or legal invalidity. Power of attorney documents must be extremely specific about granted authorities, as overly broad language can create opportunities for misuse by representatives.
Currency and tax reporting oversights can trigger compliance issues in buyers' home countries, particularly for large cash transactions that exceed reporting thresholds. Foreign buyers should consult tax professionals in both countries to understand reporting obligations and potential tax consequences of property ownership.
It's something we develop in our Peru property pack.
Does the Peruvian legal system offer strong protection for foreign buyers, and what precautions should you take before signing anything?
Peru's legal framework provides substantial protection for foreign property buyers through established registration systems and judicial oversight, though proper precautions remain essential.
SUNARP (National Superintendency of Public Registries) maintains comprehensive property records that provide strong title protection once registration is complete. The public registry system ensures that properly registered ownership cannot be disputed by third parties, offering security comparable to developed countries' property registration systems.
Notary oversight provides additional protection, as all property transfers must be executed before licensed notaries who verify document authenticity and party identification. Peruvian notaries have legal liability for document accuracy, creating strong incentives for thorough verification procedures.
Foreign buyers should engage independent legal counsel experienced in international property transactions rather than relying solely on seller-provided attorneys. Independent lawyers can identify potential issues, verify compliance with all legal requirements, and ensure that contracts protect buyer interests adequately.
Essential precautions include obtaining comprehensive title insurance, conducting independent property inspections, and verifying that all permits and approvals are current and transferable. Buyers should also confirm that property taxes are current and that no outstanding municipal violations or liens exist.
Contract review should focus on identifying any clauses that might disadvantage foreign buyers, ensuring that all conditions precedent are clearly defined, and confirming that termination rights are preserved if problems arise during due diligence. All agreements should specify governing law, dispute resolution mechanisms, and jurisdiction for any legal proceedings.
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.
Moving to Peru and purchasing property offers foreign buyers an accessible entry point into South American real estate markets with strong legal protections and growing investment opportunities.
As we reach mid-2025, Peru's continued infrastructure development, tourism growth, and stable political environment create favorable conditions for long-term property investment success.
Sources
- Buch Dein Visum - Real Estate in Peru
- The Latin Investor - Peru Property Investment
- F2F Cusco - Buying Property in Peru Guide
- Kurby.ai - Can Foreigners Buy Property in Peru
- Multilaw - Real Estate Guide Peru
- The Latin Investor - Lima Apartment Process
- Aparthotel - Financing Property in Peru
- RGB Avocats - Legal Issues Buying Property Peru
- Premier Casa - Peru Real Estate
- Baker McKenzie - Peru Real Estate Law