facebook
click to enable zoom
Searching...
We didn't find any results
open map
View Roadmap Satellite Hybrid Terrain My Location Fullscreen Prev Next
Advanced Search
Advanced Search
we found 0 results

Buying Real Estate in Peru as a Foreigner

Guide to Buying Peru Real Estate

As an Escape Artist reader, you’re likely always on the lookout for great new locations to purchase real estate in. Well, put Peru on your list. In this guide we will give you the process for buying real estate in Peru as a foreigner.

Right now is the perfect time to purchase real estate in Peru. The country boasts the strongest growing economy in all of Latin America, due in no small part to the fact that Peru’s president is former World Bank economist Pedro Pablo Kuczynski.

What’s even better still is that recent legislation passed which greatly reduces the tax burden for non-domiciled owners, meaning foreigners such as yourself. The capital gains tax for non-domiciled owners of Peruvian real estate was reduced from 30% to 5%. Compare that rate to other nations, such as the UK, where a non-dom will face a capital gains tax between 18-28%, or in the U.S., where, according to the Foreign Investment in Real Property Tax Act (FIRPTA), non-doms will face capital gains taxes on real estate equal to income tax rates. This translates into a capital gains tax reaching a maximum of 20% for non-doms purchasing real estate in the U.S.

In short, you are likely to pay significantly less in capital gains taxes from real estate purchases as a foreigner in Peru than many other nations. This makes a real estate purchase in Peru a very tax-efficient investment. And with the nation’s strong economy, a real estate investment in Peru is even more enticing.

Let’s examine the process and culture of buying real estate in Peru.

To begin with, while it is always encouraged to involve an experienced real estate attorney in the purchase of real estate, especially foreign real estate, in practice, most residential property transactions in Peru are completed without a lawyer representing either party.

Secondly, it is important to know that most real estate transactions in Peru are done in cash. This is the culture of real estate in this country, especially true for foreigners. The reason for this is two-fold. First, it can be difficult as well as very time consuming for a foreigner to develop a strong enough relationship with a Peruvian bank to get a loan, and any loans that a foreigner might receive would have less than ideal interest rates, typically in the double digits. Secondly, Peruvian sellers are likely to take offers slightly less than the asking price if the purchase is made in cash, meaning that a cash purchase of real estate is likely to be cheaper than the alternative, mortgage-based purchase. Therefore, it is best to make any purchase of real estate in Peru outright in cash.

Another cultural difference between buying real estate in Peru and the United States is the role that home inspections play in the buying process. In the U.S., it is common for would-be buyers to complete a home inspection after putting down some earnest or, as it’s known in Peru, arras money. They also typically will be refunded their earnest money if they are not able to complete full payment within the time limit specified for purchase.

In Peru, home inspections are much less common. In addition, foreign buyers of real estate are at a much higher risk of losing their earnest or arras money, which is typically 10%, if they are not able to complete the full payment of the purchase within the specified time limit. While this may seem like a disadvantage, keep in mind that, in Peru, if the seller walks away from a deal after completing the arras agreement, they are liable to the would-be buyer for twice the established amount.

Once again, it should be noted that these practices describe “typical” real estate transactions in Peru, but that every transaction can be different. This is where the expertise of an experienced real estate attorney can come in handy, or at the very least, a good amount of due diligence on the part of the foreign buyer.

The role of public notaries, or notarias, in Peruvian real estate and legal culture is also slightly different than in the U.S. Notarias are more involved in the process than public notaries are in the U.S., often to the benefit of both parties. For instance, the notaria will work directly with Sunarp, the government agency responsible for the official property registration. Together, they essentially perform the duties of a title company in the U.S., ensuring that the sellers are the rightful and complete owners of the property and are thereby eligible to sell it. And of course, an agreed upon notaria will be able to make a legal sales contract between the buyer and seller, much the way regular notary publics work in the U.S.

Finally, there is the issue of taxes. Before the actual closing of the deal at the notaria, appropriate taxes must be paid by the buyer and seller. When the escritura, the document Sunarp uses to officially register the property, is drafted, the property taxes through the remainder of that calendar year must have been paid by the seller, and exemptions must have been submitted. For their part, the buyer must pay an acabala, which is a sales tax equal to 3% of the sales price, unless they are purchasing directly from a builder, in which case the acabala is not necessary. It is also generally the custom that the buyer will pay all notary fees, which typically range between 1500 and 2500 Peruvian sols.

That covers the majority of the processes of buying real estate in Peru as a foreigner. Although the process is a bit different than in other countries, if a foreigner can understand these few differences and intricacies of the process, they can find themselves owning prime real estate in Peru. With its strong economy and tax-friendly foreign ownership structure, purchasing real estate in Peru is an attractive prospect that many foreigners are sure to pursue.

If you have any further questions about buying real estate in Peru please contact our Peru real estate agent – Tim Brace. Also Tim offers a Lima Peru real estate tour.

Please check out our Peru real estate listings.

Chanchamayo, San Ramon, Junin, Modern House

$ 350,000
Beautiful and modern house built in 2015 in the middle of the highland jungle but with all the comforts needed today and very close to the center of San Ramón. It has: • Combined living and dining roo [more]
Beautiful and modern house built in 2015 in the middle of the highland jungle but with all [more]
47 500.00 m2full info

Barranco, Apt., Mansion, or Boutique Hotel

$ 10,000 - $13,000 per month
Classic, fully renovated, Lima “Casona” and Guest House in the best part of Barranco, perfect as a Residence, Embassy, Boutique Hotel, Bed&Breakfast, or Restaurant. MAIN HOUSE Gorgeous [more]
Classic, fully renovated, Lima “Casona” and Guest House in the best part of Ba [more]
98.5 850.00 m2full info
17

Cusco Sacred Valley Guest Villas

$ 640,000
3 separate, fully furnished, 2+  bedroom, 200m2 villas, designed consciously, utilizing natural materials and being as kind to the land as possible. SACRED VALLEY The Sacred Valley of Peru, along the [more]
3 separate, fully furnished, 2+  bedroom, 200m2 villas, designed consciously, utilizing na [more]
66 547.00 m2full info

Las Palmeras de Bocapan Beach House in Zorri...

$ 290,000
Cozy, yet modern beach house in the exclusive Las Palmeras de Bocapán Condominium, next to the hotel Casa Andina Select Zorritos MAIN LEVEL – 4 bedrooms, all with air conditioning, a fan, bedsid [more]
Cozy, yet modern beach house in the exclusive Las Palmeras de Bocapán Condominium, next to [more]
44.5 232.00 m2full info

Beach Lot, Playa Los Organos, Piura, Peru

$ 179,000
1044m2, first-row beach lot on Playa Grande, Playa Los Organos near Mancora in Talara Piura.  Playa Los Organos is the perfect beach for EcoTurismo activities featuring turtles, whales, Kite surfing a [more]
1044m2, first-row beach lot on Playa Grande, Playa Los Organos near Mancora in Talara Piur [more]
35

Miraflores Malecon, Penthouse, Larcomar

$ 1,990,000
Miraflores Penthouse overlooking Larcomar and the Costa Verde for sale $1,990,000 or rent $5,000 per month fully and exquisitely.  Miraflores Penthouse duplex overlooking Larcomar, the famous outdoor [more]
Miraflores Penthouse overlooking Larcomar and the Costa Verde for sale $1,990,000 or rent  [more]
35.5 330.00 m2full info

Home for Sale in the Urubamba Valley, Cusco,...

$ 695,000
Overlooking the Vilcanota River also known as the Sacred River of The Inca which is said to contain the spirit of the Inca Princess sits Qente Wasi (Hummingbird House). There are many species of Hummi [more]
Overlooking the Vilcanota River also known as the Sacred River of The Inca which is said t [more]
65 322.00 m2full info
apuruna1

Antioquia Club Sierra Morena 5 Bedroom House

$ 1,290,000
Cieneguilla / Antioquia exclusive Club Sierra Morena 5 bedroom, fully furnished 550m2 home + 300m2 terrace on 6840m2 of land. 550 m2 Covered on 3 Levels 5 Ample Bedrooms, 5.5 Baths + 2 Service Rooms a [more]
Cieneguilla / Antioquia exclusive Club Sierra Morena 5 bedroom, fully furnished 550m2 home [more]
55.5 850.00 m2full info

Huaraz Eco-Lodge at the Foot of Cordillera B...

$ 1,600,000
Opportunity to purchase a 2.5-hectare farm and mountain lodge with luxury accommodations for 18 to 20 people located at the base of the Cordillera Blanca mountains – the highest mountains in the Peruv [more]
Opportunity to purchase a 2.5-hectare farm and mountain lodge with luxury accommodations f [more]
98 336.00 m2full info
13

Miraflores Offices for Rent in Lima Peru

From $ 600 per month
We have a variety of offices for rent in Miraflores Lima Peru. The offices for rent range in size from 35 square meters to 150 square meters. We also have houses that are offices for rent too. These o [more]
We have a variety of offices for rent in Miraflores Lima Peru. The offices for rent range [more]
1.5 85.00 m2full info

Amazon Riverfront Oasis – 12+ Hectares, 7 Bu...

$ 350,000
PROPERTY OVERVIEW: Over 12 hectares, most prime untouched virgin jungle. Property directly on the Amazon river, 1+ hour downstream of Iquitos by speedboat. Property on high ground in no danger from fl [more]
PROPERTY OVERVIEW: Over 12 hectares, most prime untouched virgin jungle. Property directly [more]
lightoftheshipibo
21

100% Mountain View, Farmable, Working Land w...

Starting at $850,000 USD
Amazing land with new lodge/ retreat center in the Peruvian Andes near Cusco, Machu Picchu, Choquequirao. 500m2 of developed and usable area/lodge with additional land starting at 0.5 hectare to 2 hec [more]
Amazing land with new lodge/ retreat center in the Peruvian Andes near Cusco, Machu Picchu [more]
1011 500.00 m2full info

Stunning Rainforest Lodge with 205,000 mt2 o...

$ 320,000
For sale, a stunningly beautiful jungle lodge with over 20 hectares of pristine Amazonian rainforest just half an hour’s drive from Iquitos airport. The land is a good distance from the nearest [more]
For sale, a stunningly beautiful jungle lodge with over 20 hectares of pristine Amazonian [more]
115 10,000.00 m2full info
senorlate

Compare Listings