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Buying property in Peru as a foreigner comes with extra costs beyond the purchase price, including taxes like Alcabala, notary fees, and registration charges that can catch many buyers off guard.
Peru's property transfer system is heavily notary-driven and requires registration with SUNARP, the national registry authority, which adds mandatory fees that vary depending on property value.
We constantly update this blog post to reflect the latest tax rates and fee structures, including the new 2026 UIT value that affects how your Alcabala transfer tax is calculated.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Peru.
Overall, how much extra should I budget on top of the purchase price in Peru in 2026?
How much are total buyer closing costs in Peru in 2026?
As of early 2026, total buyer closing costs in Peru typically range from 4% to 7% of the purchase price, which means on a $100,000 property you should expect to pay roughly $4,000 to $7,000 extra (around S/ 15,000 to S/ 26,000 or approximately €3,700 to €6,500).
If you keep expenses to the absolute bare minimum by skipping optional services like an independent lawyer, you can get away with closing costs as low as 3.2% to 4.5% of the purchase price, covering only the mandatory Alcabala tax, notary fees, and SUNARP registration.
However, if you want to be fully protected as a foreign buyer with legal support, due diligence, translations, and a property valuation, you should realistically budget 8% to 10% of the purchase price, and even higher if VAT applies to a developer sale.
The main factors that determine whether you land at the low or high end include whether you hire an independent real estate lawyer, whether you need translation services, the complexity of the property title, and most importantly whether you are buying from a developer (which can trigger 18% VAT) or from an individual reseller.
What's the usual total % of fees and taxes over the purchase price in Peru?
For most foreign buyers purchasing residential property in Peru in 2026, the usual total percentage of fees and taxes over the purchase price falls between 4% and 7%, with Alcabala transfer tax typically being the largest single item.
The realistic low-to-high range that covers most standard property transactions in Peru runs from about 3.5% for simple resales with minimal services up to 10% for more complex purchases requiring full legal support and due diligence.
Within that total, government taxes like Alcabala typically account for around 2% to 3% of the purchase price, while professional service fees including notary costs, registration fees, and optional legal help make up the remaining 1.5% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Peru.
What costs are always mandatory when buying in Peru in 2026?
As of early 2026, the mandatory costs you cannot avoid when buying property in Peru include Alcabala (the municipal property transfer tax), notary fees to formalize the public deed, and SUNARP registration fees to officially record your ownership.
While not legally required, costs that are highly recommended for foreign buyers in Peru include hiring an independent real estate lawyer, paying for a professional property valuation, getting certified translations of documents if you do not speak Spanish, and conducting thorough due diligence checks for liens and building permits through SUNARP records.
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What taxes do I pay when buying a property in Peru in 2026?
What is the property transfer tax rate in Peru in 2026?
As of early 2026, the property transfer tax in Peru, called Alcabala, is charged at 3% of the property value, but this rate applies only to the amount above the first 10 UIT exemption, which equals S/ 55,000 (roughly $14,500 or €13,500) since the 2026 UIT is set at S/ 5,500.
Foreign buyers in Peru do not face any special transfer tax surcharge, meaning you pay the same Alcabala rules as Peruvian nationals, though the process may involve more paperwork to verify your identity and legal status.
VAT (called IGV in Peru) at 18% can apply to residential property purchases, but typically only when you buy a new unit directly from a developer or constructor as the "first sale," while resale purchases from individuals usually do not trigger VAT.
Peru does not have a traditional stamp duty system like some countries, so the main buyer taxes are Alcabala plus potential VAT on new builds, with notary and registry fees being administrative costs rather than taxes.
Are there tax exemptions or reduced rates for first-time buyers in Peru?
Peru does not have a specific first-time buyer tax exemption program like some countries, but all buyers benefit from the built-in 10 UIT Alcabala exemption (S/ 55,000 in 2026) which effectively reduces the tax burden on lower-value properties.
If you buy property through a company in Peru instead of as an individual, the transaction can become subject to more complex tax treatment, potentially triggering business activity classification and different reporting requirements, which is why individual purchases are often simpler for non-professional buyers.
There is a significant tax difference between buying a new-build versus a resale property in Peru, because new properties sold by developers can attract 18% VAT (IGV), while resale properties from individual owners typically avoid this charge entirely.
To benefit from the standard Alcabala exemption in Peru, no special documentation is required beyond the normal purchase process, as the 10 UIT deduction is automatically applied when calculating the tax at the municipal level.
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.
Which professional fees will I pay as a buyer in Peru in 2026?
How much does a notary or conveyancing lawyer cost in Peru in 2026?
As of early 2026, notary fees for formalizing the public deed (Escritura Publica) in Peru typically range from 0.3% to 1.0% of the property value, so on a $150,000 property you might pay S/ 1,700 to S/ 5,700 (roughly $450 to $1,500 or €420 to €1,400).
Notary fees in Peru are generally charged as a percentage of the property price rather than a flat rate, though the exact percentage can vary based on property value tiers, document complexity, and whether you are in Lima or a smaller city.
Translation and interpreter services for foreign buyers in Peru typically cost between S/ 300 and S/ 1,500 (roughly $80 to $400 or €75 to €370), depending on whether you need certified document translations, in-person interpretation at the notary, or both.
A tax advisor is not always necessary for a simple residential purchase in Peru, but if you plan to rent out the property or have reporting requirements in your home country, budget S/ 500 to S/ 3,000 (around $130 to $800 or €125 to €740) for professional tax guidance.
We have a whole part dedicated to these topics in our our real estate pack about Peru.
What's the typical real estate agent fee in Peru in 2026?
As of early 2026, the typical real estate agent commission in Peru ranges from 3% to 5% of the property price, so on a $200,000 apartment you might see fees of $6,000 to $10,000 (around S/ 22,500 to S/ 37,500 or €5,600 to €9,300).
In Peru, the seller usually pays the real estate agent commission, though in practice both parties sometimes pay their own agents separately or the fee gets embedded into the asking price, so as a buyer you should clarify this arrangement early in negotiations.
The realistic range for agent fees in Peru runs from 3% on the low end in straightforward transactions up to 5% or occasionally higher for premium properties or when multiple agents are involved in the deal.
How much do legal checks cost (title, liens, permits) in Peru?
Legal checks in Peru including title search, liens verification through SUNARP, and building permits review typically cost between S/ 1,500 and S/ 8,000 (roughly $400 to $2,100 or €370 to €1,970), with the price varying based on property complexity and whether issues need to be resolved.
A professional property valuation in Peru usually costs between S/ 500 and S/ 2,500 (around $130 to $660 or €125 to €615), with prices depending on property location, size, and whether the valuation is required for financing purposes.
The most critical legal check that should never be skipped in Peru is the SUNARP registry verification, because this confirms the seller actually owns the property, reveals any existing liens or mortgages, and protects you from purchasing a property with hidden legal problems.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Peru.
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What hidden or surprise costs should I watch for in Peru right now?
What are the most common unexpected fees buyers discover in Peru?
The most common unexpected fees buyers discover in Peru include the 18% IGV (VAT) shock on new developer properties, extra notary charges for translations and interpreter requirements, additional SUNARP fees for expedited processing or document corrections, and outstanding building administration fees that must be settled before transfer.
Yes, there can be unpaid property taxes or municipal obligations linked to a property in Peru that you could inherit as the new owner, which is why SUNARP title checks and municipal verification are essential before you finalize any purchase.
Scams with fake listings or fraudulent fees do occur in Peru, especially when sellers claim urgency, the property is not clearly registered in SUNARP, or the documents do not match official registry information, so always verify everything through official channels before transferring any money.
Fees that are usually not disclosed upfront by sellers or agents in Peru include notary "extras" for complex documentation, mandatory translation and interpreter costs for non-Spanish speakers, condominium administration backlogs, and any legal cleanup costs if documents do not match the actual property situation.
In our property pack covering the property buying process in Peru, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Peru?
If you buy a property with a tenant in Peru, you should budget extra for legal review of the existing lease agreement, potential negotiation or settlement costs, and administrative time, typically adding S/ 1,000 to S/ 5,000 (roughly $265 to $1,320 or €245 to €1,230) depending on complexity.
When you purchase a tenanted property in Peru, you inherit the existing lease contract and must honor its terms until expiration, meaning you take on all the landlord's obligations including maintenance responsibilities and the tenant's right to remain for the contract duration.
Terminating an existing lease immediately after purchase is generally not possible in Peru unless the lease has a specific early termination clause, the tenant agrees to leave voluntarily (often requiring compensation), or there are legal grounds for eviction under Peruvian tenancy law.
A sitting tenant in Peru typically affects the property's market value negatively and can give you a stronger negotiating position because many buyers prefer vacant properties, though investor buyers seeking rental income may view an existing tenant as an advantage.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Peru.
We have made this infographic to give you a quick and clear snapshot of the property market in Peru. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Peru?
Which closing costs are negotiable in Peru right now?
The closing costs that are negotiable in Peru include who pays the real estate agent commission (buyer, seller, or split), who covers minor notary extras, and the scope and fee structure of legal services (flat fee versus hourly rate).
Closing costs that are fixed by law or regulation and cannot be negotiated in Peru include the Alcabala tax rate (3% above the 10 UIT exemption), SUNARP registration fees which follow a set schedule, and the core notary fees for the public deed which are regulated by notarial fee guidelines.
On negotiable fees in Peru, buyers can realistically achieve discounts of 10% to 30% on legal services by shopping around, and can sometimes negotiate agent fee splits or get the seller to absorb certain closing costs, especially in slower market conditions or for properties that have been listed for a long time.
Can I ask the seller to cover some closing costs in Peru?
In Peru, there is a moderate likelihood that sellers will agree to cover some closing costs, especially if the property has been on the market for a while, the seller needs liquidity quickly, or the unit requires repairs or has documentation issues that need resolving.
The specific closing costs sellers in Peru are most commonly willing to cover include their share of agent fees, minor documentation fixes, outstanding building administration charges, and occasionally contributing toward notary fees as part of the overall price negotiation.
Sellers in Peru are more likely to accept covering closing costs when the market favors buyers, when the property has been listed for more than a few months without offers, when there are competing similar properties nearby, or when the seller is motivated by personal circumstances like relocation or financial need.
Is price bargaining common in Peru in 2026?
As of early 2026, price bargaining is common and expected in Peru's property market, particularly in Lima where negotiation is a normal part of the buying process and sellers typically price properties with some margin for negotiation.
Buyers in Peru typically negotiate 5% to 10% below the asking price in normal market conditions, and discounts of 10% to 15% are achievable when the listing is stale, the seller needs quick liquidity, or the property requires repairs or has documentation issues that need legal cleanup.
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What monthly, quarterly or annual costs will I pay as an owner in Peru?
What's the realistic monthly owner budget in Peru right now?
For a residential property you live in (not renting out) in Peru, a realistic monthly owner budget in 2026 ranges from S/ 300 to S/ 1,200 (roughly $80 to $320 or €75 to €295), depending heavily on your Lima district and building amenities.
The main recurring expense categories that make up this monthly budget in Peru include building maintenance fees (called "mantenimiento" for condos), utilities like water, electricity, gas and internet, and occasional municipal fees depending on your location.
The realistic low-to-high range for monthly owner costs in Peru runs from about S/ 300 (around $80 or €75) for a modest apartment in an outer Lima district up to S/ 2,000 or more ($530 or €490) for premium properties in districts like Miraflores or San Isidro with extensive amenities.
The monthly cost that tends to vary the most in Peru is the building maintenance fee, because it depends on building size, shared amenities like pools, gyms, and security, age of the building, and whether there are any special assessments for repairs or improvements.
You can see how this budget affect your gross and rental yields in Peru here.
What is the annual property tax amount in Peru in 2026?
As of early 2026, annual property tax in Peru (called Impuesto Predial) is calculated on the assessed cadastral value, with rates typically ranging from 0.2% to around 1% depending on value brackets, meaning a property with a S/ 300,000 assessed value might pay roughly S/ 600 to S/ 3,000 annually ($160 to $800 or €150 to €740).
The realistic low-to-high range for annual property taxes in Peru runs from under S/ 500 (around $130 or €125) for modest properties with low cadastral values up to S/ 5,000 or more ($1,320 or €1,230) for high-value properties in premium Lima districts.
Property tax in Peru is calculated based on the cadastral value assigned by the municipality, which is often significantly lower than the actual market value, and the tax rate is progressive with higher percentages applied to higher value brackets.
Certain property owners in Peru may qualify for exemptions or reductions on the Impuesto Predial, including seniors over 60 with income below a certain threshold, though these exemptions vary by municipality and require specific documentation to claim.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Peru. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Peru in 2026?
What tax rate applies to rental income in Peru in 2026?
As of early 2026, rental income tax in Peru for individuals is commonly treated at a simplified rate of around 5% of gross rental income for most residential landlords, though the effective rate can vary based on your tax registration category and declaration method.
Landlords in Peru can deduct certain expenses from rental income taxes, with the most common allowable deductions being a flat 20% presumed expense deduction available under simplified tax treatment, which means you pay tax on 80% of your gross rental income.
After applying the standard 20% expense deduction, the realistic effective tax rate for typical landlords in Peru works out to approximately 4% to 5% of gross rental income, making Peru relatively favorable for rental property investors compared to many other countries.
Foreign property owners in Peru generally face the same rental income tax rules as residents when renting out property located in Peru, though non-residents may have additional reporting requirements and should consider tax treaty implications with their home country.
Do I pay tax on short-term rentals in Peru in 2026?
As of early 2026, short-term rental income in Peru is taxable and must be declared, with the same general rental income tax rules applying, though short-term rentals can attract more administrative complexity and potentially different treatment if operated as a business activity.
Short-term rental income in Peru is not necessarily taxed at a different rate than long-term rentals for individual landlords, but if you operate at a commercial scale, you may be reclassified as a business and face VAT registration requirements, income tax under business categories, and municipal licensing obligations.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Peru.
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If I sell later, what taxes and fees will I pay in Peru in 2026?
What's the total cost of selling as a % of price in Peru in 2026?
As of early 2026, the total cost of selling a residential property in Peru typically ranges from 3% to 6% of the sale price, with the real estate agent commission usually being the largest single expense.
The realistic low-to-high range for total selling costs in Peru runs from about 3% when selling without an agent and with minimal complications up to 6% or more when using a full-service agent and incurring legal or administrative fees.
The specific cost categories that typically make up the total selling expense in Peru include real estate agent commission (3% to 5%), legal and administrative fees for documentation, potential capital gains tax if applicable, and minor notary costs for transferring the deed.
The single largest contributor to selling expenses in Peru is almost always the real estate agent commission, which typically runs 3% to 5% of the sale price and represents the majority of total selling costs for most property owners.
What capital gains tax applies when selling in Peru in 2026?
As of early 2026, capital gains tax on property sales in Peru is commonly applied at 5% of the gain for non-resident sellers, while resident individuals may face different treatment depending on whether the sale qualifies under certain income categories.
The main exemption to capital gains tax in Peru applies to the sale of a primary residence ("casa habitacion") when certain conditions are met, including that the property was your main home and you meet the ownership and residency requirements established by SUNAT.
Foreign sellers in Peru do not typically pay a higher capital gains tax rate than residents, but they may face withholding requirements and should ensure proper tax documentation to avoid complications, especially if their home country has a tax treaty with Peru.
Capital gain in Peru is calculated as the difference between the sale price and the original purchase price, and in some cases adjustments for documented improvements or inflation indexing may be allowed, though the specific calculation method depends on your tax category and documentation.
We made this infographic to show you how property prices in Peru compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Peru, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Peru Ministry of Economy and Finance (MEF) | Official government authority setting tax reference values in Peru. | We used it to confirm the 2026 UIT value of S/ 5,500. We calculated the Alcabala 10 UIT exemption (S/ 55,000) based on this official figure. |
| El Peruano (Official Gazette) | Peru's official state publication where all laws are formally published. | We used it as legal confirmation of the 2026 UIT decree. We verified all UIT-based calculations against this primary legal source. |
| SAT Lima (Municipal Tax Authority) | Official municipal authority explaining Alcabala transfer tax rules. | We used it to confirm Alcabala rates and exemption mechanics. We based our transfer tax explanations on their official guidance. |
| SUNARP (National Registry) | Peru's official property registry authority for ownership records. | We used it to explain mandatory registration requirements. We sourced registry fee structures and procedural information from their guidance. |
| SUNAT (National Tax Administration) | Peru's official national tax authority for all tax matters. | We used it to confirm the 18% IGV rate and when VAT applies. We referenced their guidance on rental income and property sale taxation. |
| PwC Tax Summaries | Major global tax advisory firm with structured country guides. | We used it to verify VAT rules on first-sale properties. We cross-checked capital gains and rental tax information against their summaries. |
| Global Property Guide | Established international property research publisher since 2006. | We used it to cross-check capital gains rates and overall cost percentages. We triangulated their data with official Peruvian sources. |
| RPP Noticias | Major Peruvian news outlet reporting on SUNARP procedures. | We used it to verify registry fee structures and practical costs. We confirmed notary and registration cost ranges against their reporting. |
| Expat Focus | Established expat relocation publisher with practical country guides. | We used it to cross-check typical ranges for notary and registration costs. We validated practical market norms against their guidance. |
| SUNAT Property Sale Portal | Official SUNAT guidance specifically for individuals selling property. | We used it to explain how property sales are taxed in Peru. We referenced their categories and exemption explanations for capital gains. |
| VATUpdate | Specialized international tracker of VAT law changes worldwide. | We used it to verify Peru's total VAT rate remains 18% in 2026. We confirmed the rate stability despite internal IGV/IPM restructuring. |
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