Published on and written by Cyril Jarnias
The Peruvian real estate market is intriguing a growing number of foreign investors. Between rapid urban growth, a tourism boom, relatively attractive taxation, and a legal framework open to non-residents, the country ticks many boxes. But investing in real estate in Peru is far from smooth sailing: sometimes complex property titles, restricted border zones, subtle taxation, and strong local disparities require serious preparation.
Good to Know:
This article provides a practical guide to position yourself effectively, based exclusively on data from a specific research report.
A Supportive Macroeconomic and Demographic Context
The interest in investing in real estate in Peru is first explained by economic fundamentals. After a decade of very rapid growth (averaging 6.4% per year between 2002 and 2012), the economy has slowed but remains overall solid. The IMF estimated growth at around 3% in 2024, with projections around 3.5 to 4.5% per year until 2028 according to several analyses. GDP reaches about 250 billion dollars, with GDP per capita having risen from a little over 2,100 dollars in 2003 to nearly 7,800–8,300 dollars twenty years later.
2000000
Peru’s national housing deficit is approaching 2 million units, accentuated by rapid urbanization.
In this context, structural housing demand remains robust, even when the economic cycle slows. The construction sector represents about 5.4% of GDP and fixed investment, particularly in buildings and infrastructure, grew by 6.6% in the third quarter of 2024.
950000
This is the number of visitors Machu Picchu welcomed in 2023.
A Legal Framework Very Open to Foreigners… with a Few Red Lines
On paper, Peru appears as a very welcoming country for the foreign investor. Article 71 of the Constitution places non-nationals on equal footing with Peruvian citizens regarding real estate property. Concretely, a foreign individual or company can acquire and hold apartments, houses, commercial premises, urban or agricultural land, with the same rights as a Peruvian: sell, rent, mortgage, or develop.
Other key points to remember before investing in real estate in Peru:
– no residency or citizenship requirement to purchase;
– no limit on the quantity, size, or value of properties owned, outside specific areas;
– freehold property system as long as the property is properly registered.
In return, certain perimeters are strictly regulated.
The 50 km Rule and Sensitive Zones
The main restriction concerns the border strip: it is prohibited for foreigners to acquire or own mines, land, forests, water, energy, or fuel resources within a 50-kilometer radius of the borders with Ecuador, Colombia, Brazil, Bolivia, and Chile. Exceptions are theoretically possible for projects of public interest, but this requires approval from the Council of Ministers and remains marginal.
Attention:
Additional restrictions must also be considered.
– inability to acquire land within military zones or in the immediate vicinity of strategic installations;
– prohibition on appropriating indigenous community lands or protected natural areas;
– specific constraints on properties classified as cultural heritage, requiring special permits, even if this rarely affects standard residential acquisitions.
In practice, these limits mainly concern rural border areas or very specific sectors. The major cities (Lima, Arequipa, Cusco, Trujillo, etc.), main beach resorts, and most tourist destinations are not affected.
Property, Residency, and Visas: Separate Logics
Owning a property does not grant any automatic right to stay. Investing in real estate in Peru is therefore not synonymous with a “golden visa,” but ownership can support a residency application.
Long-Term Stay Options in France
Discover the main long-term residency statuses available for foreign nationals wishing to settle in France.
Long-Stay Visa Equivalent to a Residence Permit (VLS-TS)
Allows a stay of 4 months to 1 year without a prefecture procedure, for reasons such as studies, salaried work, or private and family life.
Temporary Residence Permit
Issued for a maximum duration of one year, renewable, for stays related to work, studies, family, or medical treatment.
Multi-Year Residence Permit
Valid for a period of 2 to 4 years, accessible after a first regular stay of at least one year under certain statuses.
Resident Card
Allows a stay in France for a period of 10 years, renewable as of right, under strict conditions of duration of residence and integration.
‘Passeport Talent’ Card
Groups several categories for talents, researchers, entrepreneurs, artists, etc., with a validity that can go up to 4 years.
‘Visitor’ Residence Permit
Intended for individuals not working in France, who must justify sufficient resources and health coverage.
– the investor visa, which requires a significant investment in a Peruvian company (in practice, in the range of 30,000 to over 150,000 dollars depending on the regime), a useful tool for real estate development projects or rental structures;
– the rentista visa, intended for individuals with a stable passive income of at least 1,000 dollars per month (plus 500 dollars per dependent), including foreign rental income;
– professional or work visas for self-employed individuals with a local contract.
Permanent residence becomes accessible after several years of legal presence (generally 2 to 3 years), and citizenship can be requested after a period of permanent residence, with a requirement for Spanish proficiency and knowledge of the culture.
How an Acquisition Actually Takes Place
For those considering investing in real estate in Peru, understanding the purchase process is crucial. The average duration of a standard transaction ranges between 30 and 60 days, but certain elements can speed up or slow down the procedure.
Key Steps of the Transaction
The typical timeline looks like this:
1. Obtaining a Peruvian tax number (RUC or foreigner DNI)
Even as a non-resident, you need a tax identifier issued by SUNAT to appear in notarial deeds and pay taxes.
2. Choosing the property and negotiation
Once the property is identified (via portals like Urbania.pe, AdondeVivir.com or through agencies), negotiation is common. Listed prices often include a margin of 3 to 7%.
– 3. Preliminary agreement and deposit
Two types of documents are common:
– the Contrato de Arras, with a deposit, typically around 10%;
– the Minuta de Compra‑Venta, which is already a legally binding sales contract, outlining all conditions (price, deadlines, payment terms, penalties).
Tip:
In a promise to sell agreement, if the buyer backs out without a legally provided reason, they lose their deposit. Conversely, if the seller backs out of the sale, they may be forced to refund the buyer double the amount of the deposit paid.
– 4. Legal and technical verifications (due diligence)
This is the phase to never rush. The notary and, ideally, a specialized lawyer must:
– obtain an up-to-date Copia literal or Certificado Registral Inmobiliario (CRI) from SUNARP, to verify ownership and the absence of mortgages, liens, or encumbrances;
– check the tax situation with the municipality: property taxes (Impuesto Predial) and municipal service fees (Arbitrios) paid, absence of debts;
– request zoning (Certificado de Zonificación) and urban planning parameter certificates to confirm permitted uses (residential, commercial, tourist, etc.) and heights, densities, mandatory setbacks;
– verify construction permits and compliance certificates for buildings, avoid unauthorized extensions or informal constructions;
– ensure the property is not in a zone protected by the Ministry of Culture, especially near historical sites.
A structural survey or topographic survey can complement these checks, especially in seismic zones or for land.
Attention:
The notary drafts the final deed, supervises the signing by the parties, verifies identity and legal capacity (a medical certificate may be required for those over 65-70), then proceeds with legalization.
6. Registration at the public registry SUNARP
The deed is submitted to SUNARP for registration. It is this registration that makes you the uncontested owner. The processing time varies from 2 to 4 weeks in large cities, longer in smaller ones.
7. Municipal update
Once the deed is registered, the new owner must complete the Alta Municipal to update local tax records, while the seller proceeds with the Baja Municipal.
Special Cases: Remote Purchase and Tourist Status
It is entirely possible to invest in real estate in Peru without being physically present. You only need to sign a power of attorney before a Peruvian consulate or a notary in your country (with an apostille and official translation into Spanish), appointing a local representative who will sign on behalf of the buyer. If the buyer is married, the spouse must in principle grant the same power of attorney.
A foreigner present in Peru as a tourist can also buy, provided they obtain a specific permit (Permiso para firmar contratos) from Migraciones. Holders of business visas are exempt.
Costs and Taxation: What a Purchase Really Represents
Peru offers relatively competitive taxation on rental income, but relatively heavy taxation for non-residents on capital gains. To assess the profitability of investing in real estate in Peru, you must include all costs, both on entry and exit.
Overview of Main Real Estate Taxes
The major items can be summarized as follows:
| Type of tax / cost | Rate / indicative range | Paid by |
|---|---|---|
| Transfer tax (Alcabala) | 3% on the value above 10 UIT (approx. 53,500 PEN) | Buyer |
| VAT (IGV) first new sale | 18% on construction value (land excluded) | Buyer (via developer) |
| Capital gains tax (individual) | 5% on net gain, exemption for primary residence / properties pre-2004 | Seller |
| Capital gains considered commercial activity | 30% if ≥3 sales in the fiscal year | Seller |
| Annual property tax (Impuesto Predial) | 0.2% to 1% of cadastral value (progressive scale) | Owner |
| Rental income tax – resident | 5% on gross income (category 1), with exempt threshold | Resident owner |
| Rental income tax – non-resident | 30% on gross income (no deductions) | Non-resident owner |
| VAT on commercial lease | 18% (except some small tourist operators at reduced rate) | Owner / Tenant |
| SUNARP registration fees | approx. 0.3% to 0.5% of price | Buyer |
| Notary fees | approx. 0.10% to 0.25% (sometimes up to 1%) | Buyer |
| Lawyer fees | approx. 1% to 1.5% of price | Buyer |
| Real estate agent commission | 3% to 5% of selling price | Seller |
Total transaction costs for the buyer generally range between 4 and 6.5% of the acquisition price, while the “round-trip” cost (purchase then resale) sits between 7 and 10.5% according to sources.
Focus on Alcabala and Capital Gains
The transfer tax Alcabala is often misunderstood by foreigners. It applies to acquisitions other than the first new sale by a developer, based on the higher of the two values between:
– the price stated in the deed;
– the cadastral value assessed by the tax authority.
Good to Know:
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
