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Property taxes in Peru follow a progressive structure with rates ranging from 0.2% to 1.0% for annual property tax.
As of September 2025, Peru's property tax system includes several distinct taxes and fees that apply when owning, buying, renting out, or selling real estate. The main taxes include Impuesto Predial (annual property tax), Alcabala (transfer tax), municipal service fees, and various transaction costs.
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.
Peru's property tax system charges between S/879 and S/13,395 annually for properties valued from S/200,000 to S/1,500,000, with additional transfer taxes of 3% above S/53,500 for buyers.
Municipal service fees add S/600-3,000 yearly, while rental income faces a 5% tax rate and capital gains are taxed at 5% for both residents and non-residents in 2025.
| Tax Type | Rate/Amount | When Applied |
|---|---|---|
| Impuesto Predial (Property Tax) | 0.2%-1.0% annually | Property ownership |
| Alcabala (Transfer Tax) | 3% above S/53,500 | Property purchase |
| Rental Income Tax | 5% of gross rent | Renting out property |
| Capital Gains Tax | 5% of net gain | Property sale |
| Municipal Service Fees | S/600-3,000/year | Property ownership |
| Notary Fees | 0.5-1% of value | Property transactions |
| SUNARP Registry | 0.3% of value | Property registration |
What taxes and fees apply to property ownership, buying, renting, and selling in Peru in 2025?
Peru imposes several distinct taxes and fees on real estate transactions and ownership that every property investor must understand.
For property ownership, you pay Impuesto Predial (annual property tax) ranging from 0.2% to 1.0% based on assessed value, plus Arbitrios Municipales (municipal service fees) covering cleaning, security, and parks maintenance that typically cost S/600-3,000 annually.
When buying property, the buyer pays Impuesto de Alcabala (transfer tax) at 3% on amounts exceeding S/53,500, plus Honorarios Notariales (notary fees) of 0.5-1% of property value and Tasas por Registro en SUNARP (registry fees) of approximately 0.3%.
Rental income generates Impuesto a la Renta de Primera Categoría (first category income tax) at 5% of gross rental income, while property sales trigger Impuesto a la Renta por Ganancia de Capital (capital gains tax) at 5% on net gains for both residents and non-residents.
Additional fees include Impuesto General a las Ventas (IGV/VAT) at 18% for first sales from developers and Impuesto a las Transacciones Financieras (ITF) at 0.005% on banking operations related to property transactions.
What are the exact 2025 Impuesto Predial rates, bands, and property values used?
Peru's Impuesto Predial follows a progressive three-tier system based on self-assessed property values called "autovalúo" that municipalities publish annually.
The 2025 rates use the Tax Unit (UIT) value of S/5,350 to establish three distinct bands. Properties valued up to 15 UIT (S/80,250) pay 0.2% annually, properties from 15 to 60 UIT (S/80,250 to S/321,000) pay 0.6% on the excess amount, and properties exceeding 60 UIT (above S/321,000) pay 1.0% on amounts over the S/321,000 threshold.
Municipalities determine property values through their autovalúo system, which typically reflects assessed or cadastral values rather than current market prices. These autovalúo values generally run 20-40% below actual market values, providing some tax relief to property owners.
The progressive structure means higher-value properties face significantly higher effective tax rates, with luxury properties paying the full 1.0% rate on most of their assessed value while modest homes pay primarily at the 0.2% rate.
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Can you show specific Impuesto Predial calculations for S/200,000, S/600,000, and S/1,500,000 properties?
| Property Value | Tax Band Breakdown | Annual Tax Due |
|---|---|---|
| S/200,000 | S/80,250 × 0.2% = S/160.50 S/119,750 × 0.6% = S/718.50 |
S/879.00 |
| S/600,000 | S/80,250 × 0.2% = S/160.50 S/240,750 × 0.6% = S/1,444.50 S/279,000 × 1.0% = S/2,790.00 |
S/4,395.00 |
| S/1,500,000 | S/80,250 × 0.2% = S/160.50 S/240,750 × 0.6% = S/1,444.50 S/1,179,000 × 1.0% = S/11,790.00 |
S/13,395.00 |
What are the 2025 payment deadlines, installment options, and discount percentages for Impuesto Predial?
The 2025 Impuesto Predial payment deadline for full annual payment is February 28, 2025, with no extensions granted beyond this date.
Property owners can choose quarterly installment payments due on the last business days of February, May, August, and November 2025. The first installment must be paid by February 28, with subsequent payments following the quarterly schedule throughout the year.
Peru does not offer early payment discounts specifically for Impuesto Predial itself, though some municipalities provide participation incentives like raffles for prompt payers. However, municipal service fees (Arbitrios) can receive up to 20% discounts when paid together with Impuesto Predial before March 31, 2025.
Late payments incur monthly interest charges of 0.9% on the overdue amount, calculated from the original due date. This interest compounds monthly, making prompt payment essential to avoid escalating costs.
For example, S/1,000 in overdue taxes accumulates S/27 in interest after three months (S/1,000 × 0.009 × 3 months), demonstrating how quickly penalties can accumulate.
What penalties and interest apply for late or underpaid Impuesto Predial in 2025?
Late or underpaid Impuesto Predial generates automatic monthly interest charges of 0.9% on the outstanding balance, calculated from the original due date until full payment.
The interest calculation multiplies the unpaid amount by 0.009 for each month of delay, with partial months counted as full months. This interest compounds monthly, meaning each month's interest becomes part of the principal for subsequent calculations.
For a S/2,000 tax bill paid three months late, the penalty calculation would be S/2,000 × (0.009 × 3) = S/54 in interest charges. If paid six months late, the same bill would incur S/2,000 × (0.009 × 6) = S/108 in interest.
Municipal authorities can initiate collection procedures for significantly overdue amounts, potentially including property liens or forced collection actions. The 0.9% monthly rate equals 10.8% annually, making prompt payment crucial for property owners.
Partial payments receive credit toward the principal, but interest continues accruing on any remaining balance until complete settlement of the tax obligation.
Who pays Alcabala transfer tax, what's the 2025 rate and threshold, and what's the tax on a S/350,000 purchase?
The buyer pays Alcabala (property transfer tax) in Peru, not the seller, making it an important cost consideration for property purchasers.
The 2025 Alcabala rate is 3% of the property value exceeding the exempt threshold of 10 UIT (S/53,500). The tax base uses the higher of either the sale price or the municipal autovalúo value to prevent tax avoidance through underreported sale prices.
For a S/350,000 property purchase, the Alcabala calculation is: (S/350,000 - S/53,500) × 3% = S/296,500 × 3% = S/8,895. This means the buyer pays S/8,895 in transfer tax on top of the purchase price and other transaction costs.
Alcabala does not apply to inheritance transfers or first sales directly from developers (which instead pay IGV/VAT). The tax must be paid before completing the property transfer and registration process.
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What are typical 2025 notary fees and SUNARP registry costs by price point?
| Property Value | Notary Fees (0.5-1%) | SUNARP Registry (0.3%) | Total Transaction Costs |
|---|---|---|---|
| S/200,000 | S/1,000-2,000 | S/600 | S/1,600-2,600 |
| S/500,000 | S/2,500-5,000 | S/1,500 | S/4,000-6,500 |
| S/1,000,000 | S/5,000-10,000 | S/3,000 | S/8,000-13,000 |
What 2025 income tax rates and deductions apply to rental properties?
Rental income in Peru falls under Impuesto a la Renta de Primera Categoría (First Category Income Tax) at a flat rate of 5% of gross rental income for both residents and non-residents.
Property owners can deduct documented expenses including maintenance, repairs, insurance, and property management fees from their rental income before calculating taxes. However, many small-scale landlords choose the simplified 5% gross income rate rather than tracking detailed deductions.
For a property renting at S/2,500 monthly (S/30,000 annually), the annual tax liability equals S/30,000 × 5% = S/1,500. A higher-end property renting at S/5,000 monthly (S/60,000 annually) generates S/60,000 × 5% = S/3,000 in annual tax obligations.
Rental income tax must be paid monthly through the SUNAT system, with payments due by the 12th of the following month. Property owners must register for RUC tax identification to report rental income properly.
The 5% rate applies regardless of the property owner's residency status, making Peru's rental tax structure relatively straightforward compared to progressive personal income tax systems.
What capital gains or income taxes apply when selling property in 2025?
Property sales in Peru generate capital gains tax at 5% of net gains for both residents and non-residents, with no differentiation based on residency status.
Net gains equal the sale price minus the adjusted purchase price, which includes the original purchase cost plus documented improvements, transaction costs, and inflation adjustments for properties held over multiple years. Principal residence exemptions apply when the property serves as the seller's sole home and meets specific value and usage requirements.
For S/150,000 in capital gains, the tax liability equals S/150,000 × 5% = S/7,500. Larger gains of S/400,000 generate S/400,000 × 5% = S/20,000 in capital gains taxes.
Non-residents may face withholding tax requirements during the sale process, requiring advance tax payments to ensure compliance. The 5% rate applies to real capital gains only, not total sale proceeds.
Principal residence exemptions can eliminate capital gains taxes for qualifying homeowners, though strict documentation and eligibility requirements apply including residency duration and property value limits.
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 municipal service fees are charged in 2025 and how are they calculated?
Municipal service fees (Arbitrios Municipales) cover Limpieza Pública (public cleaning), Serenazgo (security), and Parques y Jardines Públicos (parks and gardens) services that municipalities provide to property owners.
Fee calculations depend on property location, type, size, and the municipality's service costs, creating significant variation between districts and cities. Lima districts typically charge higher rates than smaller cities due to increased service demands and costs.
Apartment owners typically pay S/50-100 monthly (S/600-1,200 annually) for municipal services, while house owners face S/100-250 monthly charges (S/1,200-3,000 annually) due to larger property footprints and service requirements.
These fees are collected quarterly or annually alongside Impuesto Predial, with early payment discounts of up to 20% available when paid together with property taxes before March 31, 2025. Each municipality sets its own rates through annual ordinances.
Municipal service fees represent mandatory charges for property ownership, regardless of whether owners actually use municipal services, making them an unavoidable cost of property ownership in Peru.
What 2025 exemptions and reduced rates exist for property taxes?
Peru offers several property tax exemptions and reductions targeting specific demographics and property types to reduce tax burdens for qualifying owners.
Senior citizens aged 60 and above receive complete exemption from Impuesto Predial for properties valued below 50 UIT (S/267,500) when used as their sole residence and their monthly income stays under 1 UIT (S/5,350). This exemption can save qualifying seniors S/500-1,500 annually depending on property values.
Disability exemptions provide deductions of up to 50 UIT (S/267,500) from taxable property value for qualifying disabled property owners under strict income and property ownership rules. First-time homebuyers may qualify for reduced rates in some municipalities when purchasing their principal residence.
Low-value properties under 10 UIT (S/53,500) receive automatic Alcabala exemption, eliminating the 3% transfer tax for modest property purchases. Some municipalities offer additional exemptions for properties in designated development zones or historic districts.
Exemption applications require documentation including medical certificates for disability claims, age verification for senior exemptions, and income statements proving eligibility under specified thresholds.
Do tax rates vary by municipality and where can I find official 2025 tables?
Municipal variation affects primarily Arbitrios (service fees) and certain incentives, while Impuesto Predial and Alcabala follow national base rules with minimal local variation.
Lima districts publish their specific rates through SAT Lima at www.sat.gob.pe, providing detailed tables for property taxes, service fees, and payment schedules. Other municipalities publish annual ordinances on their official websites or municipal offices containing 2025 tax tables and fee structures.
Required documents for filing and payment include national ID or RUC number, previous year's autovalúo forms (HR and PU), property ownership documents, and current property registration certificates from SUNARP.
For Alcabala payments, additional requirements include the Minuta (purchase contract), notary certifications, and proof of other tax payments. Municipal offices provide specific document checklists for each tax type and payment method.
It's something we develop in our Peru property pack.
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's property tax system in 2025 combines progressive annual property taxes, significant transfer taxes, and mandatory municipal service fees that investors must factor into their investment calculations.
Understanding these tax obligations before purchasing helps investors accurately project their total cost of ownership and ensure compliance with Peru's evolving tax regulations.
Sources
- Gobierno del Perú - Property Tax Value Determination
- La Cámara - Property Tax and Municipal Fees 2025
- Orbitax - Peru Tax Unit Value 2025
- BBVA Peru - How to Calculate Property Taxes
- SAT Lima - Property Tax and Municipal Fees Information
- RGB Avocats - Real Estate Transaction Taxes in Peru
- Andres Berger Garcia - Buying Property in Lima
- Requiero Mi Casa - Income Tax on Property Sales