Authored by the expert who managed and guided the team behind the Peru Property Pack
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Peru has become an increasingly attractive destination for American buyers looking for affordable real estate, a lower cost of living, and strong rental yields in cities like Lima.
But buying property abroad comes with unique rules, taxes, and paperwork that can trip up even experienced investors.
This guide breaks down everything a US citizen needs to know about purchasing residential property in Peru in 2026, from legal rights to mortgage options to IRS reporting.
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.
Can a US citizen legally buy residential property in Peru right now?
Can I buy a home in Peru as a US citizen in 2026?
As of early 2026, US citizens can legally buy apartments, houses, condos, and residential land in Peru under essentially the same ownership rules that apply to Peruvian nationals.
The standard buying process for a US citizen in Peru involves signing a purchase contract, having it notarized into a public deed, and then registering the ownership with SUNARP, Peru's national property registry.
There is one important exception to keep in mind: Peru's constitution restricts foreigners from acquiring property within 50 kilometers of any national border, unless special authorization is granted.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Peru.
Are there many Americans buying property and living in Peru in 2026?
As of early 2026, an estimated 5,000 to 10,000 American citizens live in Peru at any given time, though only a portion of these are property owners since many are renters or short-term residents.
The highest concentrations of American expats and property owners in Peru are found in Lima's upscale neighborhoods like Miraflores, Barranco, and San Isidro, which offer modern amenities, walkability, and a vibrant social scene.
The top three reasons Americans choose to buy property in Peru include the significantly lower cost of living compared to US cities, favorable year-round weather in coastal areas, and attractive rental yields that can reach 5% to 7% in popular Lima districts.
The American expat community in Peru has been gradually growing over the past decade, driven by remote work flexibility and retirees seeking affordable healthcare and a high quality of life.
Do foreigners have the same buying rights as locals in Peru?
In Peru, foreigners generally have the same property buying rights as local Peruvian citizens, and US citizens are not singled out for any extra restrictions beyond those that apply to all foreign nationals.
The main restriction for foreign buyers in Peru, including Americans, is the constitutional prohibition on purchasing property within 50 kilometers of any international border, which affects areas near Ecuador, Colombia, Brazil, Bolivia, and Chile.
We cover all these things in length in our pack about the property market in Peru.
Can I buy property in Peru without a residence permit?
Yes, you can buy residential property in Peru without holding a residence permit, as Peru does not require foreigners to be residents in order to own real estate.
If you are buying property in Peru while living abroad, the process typically involves working with a local attorney, granting power of attorney to a representative, and coordinating with a notary to sign and register the deed remotely.
Buying a home in Peru does not automatically grant you any visa or residency rights, so if you want to live in Peru long-term, you will need to apply for a visa separately through normal immigration channels.
The main practical challenge for non-resident buyers completing a property purchase remotely in Peru is coordinating the notarization process, bank transfers, and identity verification across time zones and languages.
Can US citizens own land in Peru?
Yes, US citizens can own land outright in Peru with full freehold-style ownership, which is the standard form of property ownership for residential lots, houses, and condos throughout the country.
In Peru, the default ownership structure is registered freehold ownership through SUNARP, not leasehold, meaning you own the property and land permanently rather than renting it from the government for a fixed term.
The main geographic restriction on foreign land ownership in Peru is the 50-kilometer border zone, where foreigners cannot acquire property unless they obtain special authorization, which is rarely granted for residential purposes.
Please note that we have a dedicated blog article about the land buying process in Peru here.
What documents will I need to buy in Peru?
To purchase property in Peru, a US citizen typically needs a valid passport, the signed purchase contract (minuta), the notarized public deed (escritura publica), and proof of funds showing where the money comes from.
A local tax identification number (RUC) is often required in practice if you plan to pay ongoing property taxes, collect rental income, or interact with Peru's banking and tax systems through SUNAT.
A local bank account in Peru is not strictly required to own property, but it is highly recommended for paying utilities, HOA fees, municipal taxes, and managing any rental income you receive.
Banks and notaries in Peru typically require proof of funds documentation showing the source of your purchase money, and while a local address is not legally required, having one makes receiving official notices and tax bills much easier.
We have a whole section dedicated to all the documents you need in our Peru property pack.
Can a foreign-owned company buy property in Peru?
Yes, a foreign-owned company can legally purchase residential property in Peru, subject to the same 50-kilometer border zone restriction that applies to individual foreign buyers.
Some Americans do use corporate structures to hold property in Peru, but they typically form a Peruvian company (such as a Sociedad Anonima Cerrada or SAC) rather than using a US LLC, which has no legal standing in Peru.
Owning property through a company in Peru does not typically lower your tax burden for a simple personal residence, and it can actually increase complexity through additional accounting, corporate filings, and tax reporting requirements.
The main drawback of using company ownership for residential property in Peru is the extra administrative burden and cost, which usually only makes sense for investors managing multiple properties or those with specific liability concerns.
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What taxes and fees will I pay in Peru in 2026?
What are buyer taxes in Peru in 2026?
As of early 2026, the main buyer tax in Peru is the alcabala (property transfer tax), which is typically 3% of the property value above a small exemption threshold, meaning on a S/ 500,000 property (about $135,000 USD or 125,000 EUR), you would pay roughly S/ 15,000 (around $4,000 USD or 3,700 EUR) in transfer tax.
The buyer tax components in Peru include the alcabala at 3% of the taxable value, and potentially IGV (Peru's VAT at 18%) if you are buying a new property directly from a developer, though the IGV is usually included in the advertised price.
In Peru, buyer tax rates do not differ between foreigners and locals or between primary residences and investment properties, so Americans pay the same alcabala rate as Peruvian citizens on equivalent purchases.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Peru.
What are other closing costs in Peru in 2026?
As of early 2026, buyers in Peru should budget approximately 2% to 4% of the purchase price for non-tax closing costs, meaning on a $150,000 USD property (about S/ 555,000 or 140,000 EUR), you would pay roughly $3,000 to $6,000 USD (S/ 11,000 to S/ 22,000 or 2,800 to 5,600 EUR) for notary, registry, and administrative fees.
The main closing cost categories in Peru include notary fees for preparing the public deed (typically S/ 1,500 to S/ 4,000 or $400 to $1,100 USD), SUNARP registry fees that vary by property value (usually S/ 500 to S/ 2,000 or $135 to $540 USD), legal fees if you hire an attorney (around S/ 2,000 to S/ 5,000 or $540 to $1,350 USD), and there is usually no buyer agent commission in Peru.
Legal fees and the level of due diligence you request are the most negotiable closing costs for buyers in Peru, while notary and registry fees are relatively fixed based on the transaction value.
The closing cost item that tends to surprise foreign buyers the most in Peru is the cost and complexity of clearing any outstanding municipal debts (predial and arbitrios taxes) attached to the property, which the buyer often inherits if not properly checked.
Are there hidden fees foreigners miss in Peru right now?
Foreign buyers in Peru commonly overlook an additional S/ 3,000 to S/ 10,000 (about $800 to $2,700 USD or 750 to 2,500 EUR) in unexpected fees related to currency exchange, translations, and property verification that are not included in standard closing cost estimates.
The top three hidden fees that foreign buyers most often fail to budget for in Peru are: international wire transfer and currency exchange costs (typically S/ 500 to S/ 2,000 or $135 to $540 USD per transfer), document translation and legalization fees (around S/ 1,000 to S/ 3,000 or $270 to $810 USD), and extra due diligence costs if the property has title issues in SUNARP (potentially S/ 2,000 to S/ 5,000 or $540 to $1,350 USD).
The ongoing annual costs that foreign property owners often underestimate in Peru include the predial (property tax) which ranges from 0.2% to 1% of the assessed value, arbitrios (municipal service fees) of around S/ 500 to S/ 2,000 ($135 to $540 USD) per year, and HOA fees in modern Lima buildings that can run S/ 300 to S/ 1,500 ($80 to $400 USD) monthly.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Peru.
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.
Can I get a mortgage as a US citizen in Peru in 2026?
Do banks lend to US citizens in Peru in 2026?
As of early 2026, several major banks in Peru do offer mortgage financing to US citizens, though the process requires more documentation than for local borrowers and approval is not guaranteed.
US citizens receive roughly equal treatment compared to other foreign nationals when applying for mortgages in Peru, as banks evaluate all non-residents primarily based on income stability, documentation quality, and down payment size rather than nationality.
The main reason some banks in Peru are hesitant to lend to American borrowers specifically is the extra compliance burden created by FATCA reporting requirements, which makes some smaller institutions avoid US clients altogether.
The typical approval rate for US citizens applying for property loans in Peru is lower than for residents, with many foreigners finding it easier to either buy with cash or establish residency first before applying for a standard mortgage.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Peru.
What down payment do American people need in Peru in 2026?
As of early 2026, US citizens typically need a minimum down payment of 20% to 40% to obtain a mortgage in Peru, meaning on a $150,000 USD property (about S/ 555,000 or 140,000 EUR), you would need at least $30,000 to $60,000 USD (S/ 111,000 to S/ 222,000 or 28,000 to 56,000 EUR) upfront.
The typical down payment range for foreign buyers in Peru runs from 20% for residents with strong local income documentation up to 40% for non-residents relying primarily on foreign income sources.
Yes, a larger down payment does improve mortgage terms for US citizens in Peru, as putting down 30% to 40% instead of the minimum typically results in lower interest rates and faster approval from Peruvian banks.
You can also read our latest update about mortgage and interest rates in Peru.
What interest rates do US citizens get in Peru in 2026?
As of early 2026, US citizens can expect mortgage interest rates in Peru ranging from approximately 8% to 12% APR for loans in Peruvian soles, or 6% to 9% APR for dollar-denominated mortgages, depending on their financial profile and down payment.
Interest rates for foreign buyers in Peru are generally similar to or slightly higher than rates for local residents, with the premium reflecting the additional risk banks perceive when lending to non-residents with foreign income sources.
Fixed-rate mortgages are more common for foreign buyers in Peru, with typical terms ranging from 10 to 20 years, though some banks offer variable rates that adjust with Peru's reference rate.
The single factor with the biggest impact on the interest rate a US citizen will be offered in Peru is their residency status and income documentation, as banks offer significantly better rates to borrowers who can show stable local or easily verifiable foreign income.
Can I use US income to qualify in Peru right now?
Yes, banks in Peru often accept US-sourced income for mortgage qualification, though the approval process requires more extensive documentation and verification than for borrowers with local Peruvian income.
Banks in Peru typically require American applicants to provide US tax returns (usually two years), bank statements showing six to twelve months of deposits, employment verification letters, and sometimes pay stubs or 1099 forms to verify income stability.
If standard US documentation is insufficient, some banks in Peru will accept alternative verification such as CPA-certified income letters, business financial statements for self-employed applicants, or asset-based qualification using substantial savings or investment accounts.
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How do US taxes interact with owning property in Peru?
Do I have to declare the property to the IRS from Peru?
Owning property in Peru by itself does not typically require a specific IRS form, but the moment you open a Peruvian bank account to manage the purchase or collect rent, you may trigger reporting requirements like FBAR or Form 8938.
US citizens who own foreign real estate in Peru may need to file FBAR (FinCEN Form 114) if their Peruvian bank accounts exceed $10,000 at any point during the year, and Form 8938 if their foreign financial assets exceed the FATCA thresholds starting at $50,000 for some filers.
Simply owning property in Peru does not trigger IRS reporting, but generating rental income or selling the property for a gain does create US tax obligations that must be reported on your annual return.
Will I pay tax twice in the US and Peru in 2026?
As of early 2026, there is a real risk of paying taxes in both countries on the same income, since the US taxes citizens on worldwide income and Peru taxes income earned within its borders, though relief mechanisms exist to reduce the burden.
The US and Peru do not have a comprehensive income tax treaty, so American property owners in Peru cannot rely on treaty provisions to automatically avoid double taxation and must instead plan around this gap.
The Foreign Tax Credit (claimed via IRS Form 1116) allows US citizens to offset taxes paid to Peru against their US tax liability, which in practice often eliminates or significantly reduces double taxation on rental income or capital gains.
Property taxes (predial) paid in Peru are generally not deductible on US federal tax returns for personal residences, though they may be deductible as an expense if the property generates rental income that you report on Schedule E.
Do I need FATCA reporting when buying in Peru?
FATCA reporting (Form 8938) may be required if your foreign financial assets, including Peruvian bank accounts used for the property purchase, exceed $50,000 on the last day of the year or $75,000 at any point during the year for US residents filing single.
The FATCA thresholds that trigger reporting are $50,000 to $200,000 depending on your filing status and whether you live in the US or abroad, and any Peruvian bank account, investment account, or financial instrument counts toward these limits.
FATCA (Form 8938) and FBAR (FinCEN Form 114) are separate requirements with different thresholds: FBAR applies when foreign accounts exceed $10,000 at any time, while FATCA has higher thresholds but covers a broader range of financial assets beyond just bank accounts.
Consulting a US CPA before buying property in Peru is highly recommended, especially if you plan to rent the property, hold significant funds in Peruvian accounts, or buy through a corporate structure, and you should specifically ask about FBAR, FATCA, and Foreign Tax Credit planning.
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.
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 Constitution (Congress Portal) | Official consolidated constitutional text from Peru's Congress. | We used it to confirm foreign ownership rights and the 50km border restriction. We also verified the equal treatment principle for property purchases. |
| SUNARP Property Registry | Peru's national authority for property registration. | We used it to explain the registration process and why title protection matters. We also referenced it for understanding how ownership becomes legally enforceable. |
| SBS Interest Rate Statistics | Peru's financial regulator publishing official rate data. | We used it to anchor mortgage interest rate ranges to official statistics. We also referenced it to explain bank lending practices for foreigners. |
| Lima SAT Tax Information | Lima's tax administration explaining municipal property taxes. | We used it to define alcabala and explain how transfer tax works. We also referenced it for ongoing property tax obligations. |
| MEF 2026 UIT Announcement | Peru's Finance Ministry setting the official tax unit value. | We used it to lock the 2026 UIT at S/ 5,500 for all tax calculations. We also verified this against the official gazette publication. |
| FinCEN FBAR Requirements | US authority for foreign account reporting rules. | We used it to explain the $10,000 FBAR threshold accurately. We also clarified when Peruvian bank accounts trigger US reporting. |
| IRS Form 8938 Guidance | Official IRS explanation of FATCA filing requirements. | We used it to explain when foreign assets trigger Form 8938. We also distinguished FATCA from FBAR requirements for readers. |
| IRS Tax Treaty List | Primary source for US tax treaty status with other countries. | We used it to verify that no comprehensive US-Peru tax treaty exists. We also explained implications for double taxation planning. |
| BCRP Inflation Report | Peru's central bank providing credit market analysis. | We used it to confirm that mortgage lending is mainstream in Peru. We also referenced it for macroeconomic context on lending conditions. |
| SUNAT Rental Income Tax | Peru's tax authority explaining rental income taxation. | We used it to state the 5% rental tax rate for individuals. We also explained ongoing tax obligations for property owners. |
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