Authored by the expert who managed and guided the team behind the Peru Property Pack
Everything you need to know before buying real estate is included in our Dominican Republic Property Pack
Property taxation in Peru follows a structured system with multiple fees and taxes applying at different stages of ownership.
When buying a house in Peru, you'll face a property transfer tax of 3% on the amount exceeding PEN 53,500, plus notary and registration fees totaling around 0.8-1.5% of the property price. Annual property taxes range from 0.2% to 1% based on the assessed value, while capital gains tax applies at 5% when selling, though primary residences are exempt from this tax.
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.
Property buyers in Peru pay a 3% transfer tax on amounts above PEN 53,500, plus notary and registration fees.
Annual property taxes are progressive, ranging from 0.2% to 1% of the assessed value depending on property value brackets.
| Tax/Fee Type | Rate/Amount | When Applied |
|---|---|---|
| Property Transfer Tax (Alcabala) | 3% above PEN 53,500 | At purchase |
| Notary Fees | 0.5-1% of property price | At purchase |
| Registration Fee (SUNARP) | 0.3-0.5% of property price | At purchase |
| Annual Property Tax | 0.2-1% of assessed value | Yearly |
| Municipal Taxes | 0.1-0.3% of assessed value | Yearly |
| Capital Gains Tax | 5% of net gain | At sale (exempt for primary residence) |
| Total First Year Cost | 4.5-6% of purchase price | Combined transaction costs |
How much is the property transfer tax when you buy a house in Peru?
The property transfer tax in Peru, called Alcabala, is 3% of the property purchase price.
This tax applies to the amount that exceeds the first 10 Tax Units (UIT). As of September 2025, each UIT equals PEN 5,350, making the exempt amount PEN 53,500 (approximately $14,000).
For example, if you buy a house for $100,000 (approximately PEN 380,000), you would pay 3% on the amount above PEN 53,500. This means you pay 3% on PEN 326,500, resulting in a transfer tax of PEN 9,795 (about $2,575).
The buyer is responsible for paying this transfer tax, and it must be paid before the property deed can be transferred to your name.
It's something we develop in our Peru property pack.
What percentage of the house price is exempt before the transfer tax applies?
The first 10 Tax Units (UIT) are completely exempt from the property transfer tax in Peru.
As of September 2025, this exemption equals PEN 53,500, which is approximately $14,000 at current exchange rates. This exemption applies to all property purchases, regardless of whether it's your first home or an investment property.
The exemption amount is adjusted annually when the government sets the new UIT value for the following year. The UIT typically increases to account for inflation and economic factors.
Only the amount above this threshold is subject to the 3% transfer tax rate.
What is the annual property tax rate applied to houses in Peru?
Peru applies a progressive annual property tax system with rates ranging from 0.2% to 1% of the property's assessed value.
The tax brackets are structured as follows: properties valued up to 15 UIT (PEN 80,250 in 2025) pay 0.2%, properties valued between 15-60 UIT pay 0.6% on the excess above 15 UIT, and properties valued above 60 UIT (PEN 321,000) pay 1% on the amount exceeding 60 UIT.
This progressive system means that expensive properties face higher effective tax rates while modest homes remain affordable to maintain. The tax is calculated on the municipality's assessed value, not the market price you paid.
Property owners must pay this tax annually to their local municipality, and the assessed values are updated yearly by municipal authorities.
How is the property tax calculated based on property value brackets in Peru?
| Property Value Range | Tax Rate | Example Calculation |
|---|---|---|
| Up to 15 UIT (PEN 80,250) | 0.2% | PEN 80,250 × 0.2% = PEN 160.50 |
| 15-60 UIT (PEN 80,250-321,000) | 0.6% on excess above 15 UIT | PEN 100,000: (PEN 19,750 × 0.6%) + PEN 160.50 = PEN 279 |
| Above 60 UIT (over PEN 321,000) | 1% on excess above 60 UIT | PEN 500,000: Previous brackets + (PEN 179,000 × 1%) = PEN 3,405 |
| Luxury properties (200+ UIT) | Combined progressive rates | PEN 1,000,000: Total annual tax ≈ PEN 10,200 |
| High-end properties (300+ UIT) | Combined progressive rates | PEN 1,605,000: Total annual tax ≈ PEN 14,220 |
What is the minimum and maximum annual property tax you can expect for a residential home?
The minimum annual property tax in Peru starts at PEN 160.50 for properties valued up to 15 UIT (PEN 80,250).
For luxury residential properties, the maximum can reach PEN 14,220 annually for a home valued at 300 UIT (PEN 1,605,000). However, there's technically no upper limit as the 1% rate continues to apply to any value above 60 UIT.
Most middle-class homes in Lima fall within the PEN 500-2,000 annual tax range, depending on their assessed value and location. Properties in upscale districts like Miraflores or San Isidro typically face higher assessments.
The assessed value used for tax calculation is determined by the municipality and may differ significantly from market value, often being lower than what you actually paid for the property.
How much is the notary fee as a percentage or fixed amount of the house price?
Notary fees in Peru typically range from 0.5% to 1% of the property purchase price.
For a $100,000 house purchase, you can expect to pay between $500 and $1,000 in notary fees. These fees cover the preparation and authentication of the purchase contract, verification of legal documents, and ensuring all parties have proper legal capacity to complete the transaction.
The notary's role is crucial in Peru's property transfer process as they verify the property's legal status, confirm there are no outstanding debts or liens, and ensure the transaction complies with Peruvian law.
Notary fees are mandatory and must be paid before the property deed can be executed and transferred to the new owner.
How much is the registration fee at the Public Registry (SUNARP) for a property purchase?
The registration fee at SUNARP (Superintendencia Nacional de los Registros Públicos) costs approximately 0.3% to 0.5% of the property price.
For a $100,000 property, this translates to $300-$500 in registration fees. This fee is required to officially register the property transfer in the public records and establish your legal ownership.
SUNARP registration is mandatory and provides legal protection by creating an official public record of your ownership. Without this registration, your property ownership isn't legally recognized or protected under Peruvian law.
The registration process typically takes 7-15 business days after submitting all required documents and paying the fees.
Don't lose money on your property in Peru
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the municipal taxes or fees you need to pay each year as a homeowner?
Municipal taxes in Peru typically cost 0.1% to 0.3% of your property's assessed value annually.
These fees cover essential local services including garbage collection, street cleaning and maintenance, local security services, park maintenance, and municipal infrastructure upkeep. The exact amount varies significantly between municipalities, with wealthier districts like Miraflores charging higher rates than rural areas.
For a property assessed at PEN 500,000, you might pay PEN 500-1,500 annually in municipal fees. Some municipalities bill these separately from property taxes, while others combine them into a single annual bill.
Payment schedules vary by municipality, with some offering discounts for early payment or full-year advance payments.
It's something we develop in our Peru property pack.
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.
How much is the capital gains tax if you sell a house in Peru, and what rate applies?
Capital gains tax in Peru is 5% of the net gain when you sell a property.
The net gain is calculated as the sale price minus the original purchase price and qualifying expenses such as improvements, legal fees, and transaction costs. Both residents and non-residents pay the same 5% rate on real estate capital gains.
For example, if you bought a house for $100,000 and sell it for $150,000, with $5,000 in qualifying expenses, your net gain would be $45,000. The capital gains tax would be $2,250 (5% of $45,000).
The tax is due when you file your annual tax return for the year in which the sale occurred, and you're responsible for calculating and paying this tax even if you're a non-resident.
Are there any exemptions or reductions for primary residences when calculating these taxes?
Primary residences in Peru receive a complete exemption from capital gains tax when sold.
To qualify for this exemption, the property must be your main residence and cannot be used for business purposes. You can only claim this exemption once, and the property must have been your primary residence for a reasonable period before sale.
The property transfer tax (Alcabala) does not offer additional exemptions for primary residences beyond the standard PEN 53,500 exemption that applies to all property purchases. Annual property taxes also apply the same rates regardless of whether the property is your primary residence.
This exemption makes Peru attractive for individuals relocating permanently, as they won't face capital gains tax when eventually selling their home.
How often are property values reassessed for tax purposes in Peru, and how does this affect yearly payments?
Property values in Peru are reassessed annually by municipal authorities for tax calculation purposes.
Each municipality conducts its own assessment process, typically updating values to reflect local market conditions, inflation, and infrastructure improvements. These annual adjustments usually result in modest increases of 3-8% per year, though significant neighborhood developments can cause larger jumps.
The reassessment affects your annual property tax bill directly since the tax is calculated as a percentage of the assessed value. If your property's assessed value increases by 5%, your property tax will increase proportionally.
Property owners receive notification of their new assessed value and can appeal if they believe the assessment is incorrect or unfair. The appeals process typically must be initiated within 30 days of receiving the assessment notice.
It's something we develop in our Peru property pack.
What is the typical total percentage of the house price that goes to taxes and fees in the first year of ownership?
The total first-year cost for taxes and fees typically ranges from 4.5% to 6% of the property purchase price in Peru.
This includes the 3% transfer tax (on amounts above PEN 53,500), 0.5-1% in notary fees, 0.3-0.5% for SUNARP registration, and 1-2% in legal fees if you hire an attorney. Additional miscellaneous municipal fees and document costs add another 0.1-0.3%.
For a $100,000 property purchase, expect to pay $4,500-$6,000 in total first-year transaction costs. This doesn't include the annual property and municipal taxes, which are separate ongoing expenses.
Higher-value properties may see slightly lower percentages due to the transfer tax exemption threshold representing a smaller portion of the total price, while modest homes benefit more from this exemption.
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 Peru's property tax system is essential for making informed real estate investment decisions.
The combination of relatively low annual taxes and primary residence exemptions makes Peru attractive for both investors and those seeking permanent relocation.
Sources
- RGB Avocats - Tax on Real Estate Transactions in Peru
- eSales International - Selling Peru Property Tax
- PwC Tax Summaries - Peru Corporate Other Taxes
- Global Property Guide - Peru Taxes and Costs
- The Latinvestor - Buy Land Peru
- Life Abroad Hero - Peru Real Estate Guide
- Andres Berger Garcia - Buying Property Lima Peru
- Orbitax - Peru Sets Tax Unit Value