REQUIREMENTS TO BUY REAL ESTATE IN PERU

CAN A FOREIGNER BUY A REAL ESTATE IN PERU?

Yes. Peruvian regulations allow any citizen to buy a real estate in Peru

WHAT REQUIREMENTS MUST BE SATISFIED BY A FOREIGNER TO BUY A REAL

ESTATE?

In the case of foreign natural persons, a business visa must be obtained at the Embassy of Peru or the nearest Peruvian consulate to your home.

If you are already in Peru, there are two possibilities:

You already have a residence permit (allowing residence in the country - carnet de extranjería):

In this case, you just need to abide by the annual taxation laws for foreigners in the country and submit the above mentioned card to the Notary where you will be applying.

You DO NOT have the residence permit:

A special permit to sign contracts must be obtained with the DIGEMIN (Directorate General of Immigration and Naturalization Service - Ministry of Interior).

CAN A FOREIGN COMPANY ACQUIRE A REAL ESTATE IN PERU?

Yes

HOW CAN A FOREIGN COMPANY ACQUIRE A REAL ESTATE IN PERU?

Foreign companies have two options:

Establish a subsidiary in Peru so that it can acquire the property

Give power of attorney to a natural person (whether Peruvian or foreigner with a residence permit) so that he/she acquires the property on behalf of the company.

A power of attorney can be obtained:

At the nearest Peruvian consulate in your country

Before any notary in Peru.

Once you possess the corresponding power of attorney, it will need to be registered in any Registry Office in Peru.

IS YOUR SPOUSE ALLOWED TO PARTICIPATE?

If you are married the spouse is obliged by law to participate in any legal act of transaction and acquisition of a real estate.

WHAT FORMALITIES HAVE TO BE MET IN ORDER TO FORMALISE THE

ACQUISITION OF A REAL ESTATE?

Any person (natural, legal, national or foreign) must take the following steps:

Sign the private contract / deed (in Spanish called minuta)

Register the transfer at the District Municipality of the jurisdiction where the property is located.

Sign the public deed before a Notary Public

Register the purchase and sale (transfer of ownership) at the Office of Public Records

WHAT TAXATION REQUIREMENTS AND/OR OBLIGATIONS ARE TO BE

SATISFIED IN ORDER TO FORMALISE THE ACQUISITION OF A REAL ESTATE?

The buyer must pay the transfer tax (In Spanish: Impuesto de Alcabala) to the Office of Tax Administration Service of the Municipality of Lima, within thirty (30) calendar days from the date of the private purchase contract.

The tax liquidation is handled by that entity, but as a reference the tax is obtained by adjusting the declared value of the property (autoavalúo) to the price index calculated in the month previous to the transfer, that the National Institute of Statistics and Informatics (INEI) publishes for metropolitan Lima. After making the adjustment there is a deduction equivalent to 25 UIT (Unidad Impositiva Tributaria, a reference amount for procedures before public administration which for 2009 is is S/. 3550, 00.-) and after that deduction, the amount that remains is taxed at the 3 % rate.

If the property is newly constructed and it is the first sale, the sale does not incur the transfer tax (Alcabala).

For the Notary to execute the deed, the vendor, provided it is a natural person, must make the Income Tax payment (0.5% of sales value).

Registry and legal costs are borne by the buyer.

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