Peru: property buying guide (Sept 2025)

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

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 Peru. 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 Peru, and are there any restrictions on what they can or can't purchase?

Yes, foreigners can legally buy and own property in Peru with nearly identical rights to Peruvian citizens.

The Peruvian constitution guarantees property rights to foreign nationals, allowing them to purchase residential, commercial, and rural properties throughout most of the country. Foreign buyers can own property individually or through a company structure, with full title rights including the ability to sell, rent, or transfer ownership.

The primary restriction applies to properties within 50 kilometers of Peru's international borders. In these border zones, foreigners cannot directly purchase land, mines, or forests without obtaining special government approval from relevant ministries. This restriction is designed to protect national security interests and covers areas along borders with Ecuador, Colombia, Brazil, Bolivia, and Chile.

Outside these restricted border zones, foreign ownership is unrestricted. You can purchase apartments, houses, commercial buildings, and rural properties with the same legal protections as Peruvian citizens. The property ownership is registered in your name at SUNARP (National Superintendency of Public Registries), providing full legal title.

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

What are the most popular regions or cities where foreigners typically buy real estate in Peru?

Foreign buyers concentrate their investments in several key regions that offer strong rental yields, appreciation potential, and quality of life.

Lima dominates foreign property purchases, particularly in upscale districts like Miraflores, San Isidro, and La Molina. Miraflores offers oceanfront properties with stunning Pacific views, modern amenities, and a vibrant expat community. San Isidro serves as Lima's financial district with luxury condominiums and proximity to business centers. La Molina attracts families with its suburban feel, shopping centers, and good schools. Property prices in these Lima districts range from $100,000 for smaller apartments to over $500,000 for luxury units.

Cusco ranks as the second most popular destination for foreign buyers, driven by its tourism industry and UNESCO World Heritage status. The city offers excellent opportunities for short-term rental investments, with properties near the historic center commanding premium rates during peak tourist seasons. Many foreigners purchase colonial-style homes or modern apartments to capitalize on the steady flow of international visitors heading to Machu Picchu.

Arequipa appeals to foreigners seeking lower living costs while maintaining urban amenities. Known as Peru's "White City" for its volcanic stone architecture, Arequipa offers property prices 30-40% below Lima while providing a stable rental market driven by local demand and growing business activity.

Northern coastal areas like Máncora and Punta Sal attract buyers interested in beachfront vacation homes and rental properties. These locations offer direct beach access, year-round warm weather, and strong rental demand from both domestic and international tourists.

What is the step-by-step process of buying a property in Peru from start to finish?

The Peruvian property purchase process follows a structured nine-step procedure that typically takes 2-4 months to complete.

Step	Action Required	Timeline
1. Property Identification	Search properties through local agents or online platforms, conduct inspections	2-4 weeks
2. Tax ID Acquisition	Obtain RUC or DNI extranjero from SUNAT tax authority	1-2 weeks
3. Due Diligence	Verify property title, debts, and legal status through CRI certificate	1-2 weeks
4. Preliminary Agreement	Sign reservation contract and provide initial deposit (typically 10%)	1 week
5. Contract Drafting	Prepare purchase contract with notary or lawyer, include all terms	1-2 weeks
6. Payment Finalization	Transfer remaining funds through bank transfer or certified payment	1 week
7. Deed Signing	Execute Escritura Pública at notary office with all parties present	1 day
8. Tax Payment	Pay transfer tax (3%) and notary fees at designated offices	1 week
9. Title Registration	Register new ownership at SUNARP public registry	2-3 weeks

What documents do you need as a foreign buyer, and which ones are mandatory versus optional?

Foreign buyers must provide specific documentation to complete a property purchase in Peru, with some documents being absolutely mandatory and others recommended for smoother transactions.

Mandatory documents include your valid passport, which serves as primary identification throughout the process. You must obtain a Peruvian tax identification number (RUC for businesses or DNI extranjero for individuals) from SUNAT before finalizing any purchase. Proof of funds is required to demonstrate your ability to complete the transaction and comply with anti-money laundering regulations. If purchasing remotely, a power of attorney document is mandatory, properly notarized and apostilled from your home country or a Peruvian consulate.

Optional but recommended documents include marriage certificates if you're married, as Peruvian law may require both spouses to sign for jointly owned property depending on your home country's marital property laws. Opening a local bank account isn't strictly required but facilitates ongoing payments like property taxes and maintenance fees. Some buyers also provide additional financial statements or employment verification to strengthen their transaction profile, particularly when working with sellers who prefer well-documented buyers.

All foreign documents must be translated into Spanish by a certified translator and may require apostille certification depending on their origin. The notary handling your transaction will guide you through specific requirements based on your citizenship and the property type you're purchasing.

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

Can you complete the purchase without physically being in the country, and if so, how?

Yes, you can successfully complete a property purchase in Peru without traveling to the country by using a power of attorney arrangement.

The remote purchase process requires granting power of attorney to a trusted representative in Peru, typically a lawyer, real estate agent, or reliable contact person. This power of attorney must be comprehensive enough to allow your representative to sign contracts, transfer funds, and complete all legal procedures on your behalf. The document must be properly notarized and apostilled in your home country or at a Peruvian consulate.

Your chosen representative will handle all physical aspects of the transaction, including property inspections (which you can participate in virtually), contract negotiations, payment transfers, and signing the final deed at the notary office. You maintain control by receiving copies of all documents and can communicate requirements and approval at each step through email or video calls.

While remote purchases are legally valid and regularly completed, they require extra caution in selecting your representative and ensuring all documentation is properly executed. Many foreign buyers choose established law firms or real estate companies with proven track records in handling remote transactions. The total process typically takes the same 2-4 months as in-person purchases, with the added benefit of avoiding travel costs and time.

What are the typical taxes, fees, and ongoing costs associated with buying and owning property in Peru?

Property acquisition and ownership in Peru involves several taxes and fees that buyers must budget for beyond the purchase price.

The property transfer tax is 3% of the property value, but only applies to amounts exceeding S/ 88,500 (approximately $15,000 USD as of September 2025). This means most property purchases will incur the full 3% tax on the amount above this threshold. Notary and registry fees typically add another 1-1.5% of the transaction value, covering the cost of deed preparation, notarization, and registration at SUNARP.

Annual property tax ranges from 0.2% to 1% of the assessed property value, depending on the location and property type. Luxury properties and those in prime locations face higher rates within this range. Properties valued above certain thresholds may also be subject to additional municipal taxes.

Income tax obligations vary by residency status and property use. Rental income is taxed at 5% for residents, while non-residents face a 30% rate on rental income and capital gains. However, proper tax planning can help optimize these rates through legal structures and deductions.

Ongoing costs include condominium maintenance fees (typically $50-200 monthly for apartment buildings), community association dues in gated communities, utilities (electricity, water, gas, internet), and property insurance. In tourist areas, some municipalities charge additional tourism taxes or fees.

Is it possible to pay cash for property, and if so, is it common or recommended?

Cash purchases are not only possible but represent the most common payment method for foreign property buyers in Peru.

Approximately 80% of foreign property transactions are completed with cash payments, primarily because Peruvian banks rarely offer mortgages to non-residents. Cash transactions often provide negotiating advantages, with sellers typically offering 5-10% discounts for immediate cash payments versus financed purchases.

Cash payments must comply with Peru's anti-money laundering regulations, which require documentation of fund sources for transactions above certain thresholds. Banks may request additional documentation for large international transfers, including proof of income, tax returns, or sale proceeds from properties in your home country.

The payment process typically involves international wire transfers to the seller's Peruvian bank account or an escrow account managed by the notary. Some buyers prefer to bring certified bank checks or cash when traveling to Peru, though this requires declaring amounts over $10,000 to customs authorities.

While cash purchases are recommended for their simplicity and negotiating power, they require careful legal oversight to ensure proper documentation and compliance with both Peruvian and international banking regulations. Working with experienced lawyers and notaries helps ensure all payments are properly recorded and legally compliant.

Do banks in Peru offer mortgages to foreigners, under what conditions, and what are the usual interest rates?

Peruvian banks rarely offer mortgages to foreigners unless they have established local residency and demonstrate substantial Peruvian income.

The few banks that consider foreign applicants typically require legal residency status, local employment or business income, and significantly higher down payments than domestic buyers. Foreign applicants usually need to provide 35-50% down payments compared to 20-30% for Peruvian citizens. Additionally, banks require extensive documentation including local tax returns, employment contracts, and bank statements showing consistent Peruvian income for at least 12 months.

Interest rates for foreign borrowers range from 7-11% annually for mortgage loans, typically 2-3 percentage points higher than rates offered to Peruvian citizens. Loan terms usually don't exceed 15-20 years for foreign applicants, compared to 25-30 years for locals. Most banks also require mortgage insurance and comprehensive property insurance as loan conditions.

Due to these restrictive conditions, most foreign buyers choose alternative financing methods. Some obtain mortgages or home equity loans in their home countries, using those funds for cash purchases in Peru. Others partner with local investors or use seller financing arrangements when available.

The complex mortgage landscape for foreigners explains why cash purchases dominate the foreign buyer market, offering more straightforward transactions without banking complications or restrictive loan conditions.

Does buying property in Peru provide a path to residency or citizenship, and what are the requirements?

Property ownership alone does not automatically grant residency or citizenship in Peru, but it can support certain visa applications.

The Investment Visa offers the most direct path for property buyers to obtain residency. This visa requires a minimum investment of $130,000 USD in Peruvian real estate or business ventures. After maintaining this investment and meeting residency requirements for three years, holders can apply for permanent residency. The process requires demonstrating the investment's economic benefit to Peru and maintaining the property without selling during the qualification period.

Alternative residency options include the Rentista Visa for those with passive income of at least $1,000 monthly from sources outside Peru, and the Retirement Visa for individuals over 65 with pension income exceeding $1,000 monthly. These visas don't require property ownership but having a Peruvian property can strengthen applications by demonstrating ties to the country.

Permanent residency becomes available after holding temporary residency for three consecutive years, regardless of the initial visa type. Peruvian citizenship requires five years of permanent residency, basic Spanish proficiency, and knowledge of Peruvian history and geography. Property ownership can be cited as evidence of commitment to Peru during citizenship applications, but it's not a requirement.

Many foreign property owners maintain tourist status and visit Peru for up to 183 days annually without seeking formal residency, especially if they're using properties for vacation or short-term rental purposes.

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 are the classic mistakes and pitfalls foreigners should avoid when buying property in Peru?

Foreign buyers commonly encounter several avoidable mistakes that can result in financial losses or legal complications.

1. **Skipping proper due diligence** - Failing to verify property titles, existing debts, or legal disputes through the Certificado Registral Inmobiliario (CRI). Always obtain current registry certificates and verify the seller's legal right to sell.2. **Purchasing within border restrictions** - Attempting to buy property within 50km of international borders without understanding the special approval requirements, leading to invalid transactions.3. **Using informal contracts** - Relying on verbal agreements or non-notarized contracts that lack legal enforceability. All property transactions must be formalized through notarized public deeds.4. **Inadequate payment security** - Transferring large sums without proper escrow arrangements or legal oversight, creating opportunities for fraud or disputes.5. **Ignoring tax obligations** - Failing to obtain required Peruvian tax identification or understand ongoing tax responsibilities, resulting in penalties and complications.6. **Trusting unlicensed intermediaries** - Working with informal "brokers" or middlemen who lack proper credentials or legal authority to facilitate transactions.7. **Overlooking ongoing costs** - Underestimating property taxes, maintenance fees, and other recurring expenses that significantly impact investment returns.

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

How is life as an expat in Peru in terms of lifestyle, safety, healthcare, and integration?

Expat life in Peru varies significantly depending on location, but offers rich cultural experiences and generally affordable living costs.

Lifestyle quality is highest in upscale Lima districts like Miraflores, San Isidro, and La Molina, where expats enjoy modern amenities, international restaurants, shopping centers, and active social communities. These areas offer Western-style conveniences while maintaining authentic Peruvian character. Cusco provides a more traditional experience with its colonial architecture and proximity to archaeological sites, though at higher altitudes that some find challenging.

Safety conditions vary dramatically by neighborhood and city. Miraflores, San Isidro, and other affluent areas maintain strong security with private patrols and CCTV systems, making them comparable to safe neighborhoods in North American or European cities. However, downtown Lima and certain provincial areas require greater caution regarding petty crime and should be avoided after dark. Expats typically adapt quickly by learning which areas to avoid and using basic urban safety practices.

Healthcare quality in major cities meets international standards, particularly in private facilities. Lima offers numerous private hospitals and clinics with English-speaking staff and modern equipment. International health insurance provides access to top-tier facilities, while local insurance options cost significantly less than most Western countries. Prescription medications are widely available and typically cost 50-70% less than US prices.

Integration depends heavily on Spanish language skills and cultural adaptability. Peruvians generally welcome foreigners, especially in areas with established expat communities. Learning Spanish dramatically improves daily life and business opportunities, while understanding local customs around family relationships and social hierarchies helps with deeper integration.

What are the current yields, average property prices, and the long-term forecast for the real estate market in Peru?

The Peruvian real estate market shows strong fundamentals with attractive yields and steady appreciation potential across key markets.

Rental yields in Lima's prime districts currently range from 5-7% gross annually, with Miraflores and San Isidro properties typically yielding 5-6% while emerging neighborhoods like Magdalena del Mar and Jesus Maria offer 6-7%. Cusco properties can achieve 8-10% yields due to strong tourism demand, though this comes with seasonal variability. Coastal areas like Máncora see yields of 6-8% but with higher vacancy risks during off-seasons.

Average property prices vary significantly by location and type. Lima apartment prices start around $50,000-100,000 for basic units in decent neighborhoods, while luxury properties in Miraflores or San Isidro range from $200,000-500,000+. Cusco properties typically cost 20-30% less than equivalent Lima properties, with colonial homes and modern apartments ranging from $40,000-250,000. Beachfront properties in northern Peru start around $100,000 for basic homes and can exceed $400,000 for luxury oceanfront villas.

Long-term forecasts indicate continued appreciation in Peru's primary markets, driven by urbanization, growing middle class, and limited supply in desirable areas. Lima's prime districts are projected to appreciate 3-7% annually through 2030, supported by infrastructure improvements and continued economic growth. The tourism sector's recovery post-pandemic strengthens Cusco's outlook, while coastal areas benefit from increasing domestic and international vacation home demand.

Market risks include political uncertainty, economic cycles, and potential oversupply in certain segments. However, Peru's stable currency, growing economy, and increasing integration with global markets support positive long-term fundamentals for well-located properties.

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. Multilaw Real Estate Guide Peru
2. Life Abroad Hero Peru Real Estate Guide
3. Aparthotel Peru Foreign Ownership
4. The LatInvestor Peru Areas
5. eSales International Peru Investment
6. RGB Avocats Legal Issues Peru
7. The LatInvestor Peru Foreign Buyers
8. The LatInvestor Peru Property Purchase
9. Global Property Guide Peru
10. The LatInvestor Peru Investment