Foreign Ownership of Real Estate in Peru: The Complete Legal Guide

One of the first questions international investors ask about Peru is whether foreigners can actually own land there. The answer is yes — and the legal framework is more investor-friendly than most people expect.

Peru's constitution explicitly grants foreign nationals the same property rights as Peruvian citizens, with very limited exceptions. Understanding those exceptions, and the process for acquiring title, is the foundation of any serious investment strategy in the country.

What the Law Says

Article 71 of Peru's Political Constitution establishes that foreigners have the same rights as Peruvians with respect to property ownership. A foreign individual or company can purchase, hold, and sell real estate in Peru under the same legal framework as a Peruvian national.

The one significant restriction: foreign nationals and foreign-controlled companies cannot own land within 50 kilometers of Peru's international borders or coastline for national security reasons. This restriction applies to a narrow band of territory and does not affect the vast majority of investment-grade properties in Peru's coastal, Andean, or Amazon regions.

How the Purchase Process Works

A real estate transaction in Peru follows a clear sequence:

1. Due Diligence: Before any purchase, a title search is conducted through Peru's Public Registry (SUNARP — Superintendencia Nacional de los Registros Públicos). This confirms that the seller holds clean title, that there are no liens or encumbrances on the property, and that the parcel boundaries match the registered description. This step is non-negotiable and should always be done by a qualified Peruvian attorney.

2. Purchase Agreement (Minuta): Once due diligence is complete, the parties sign a purchase agreement (minuta) that sets out the terms of the transaction — price, payment schedule, conditions, and timeline. This document is prepared by a notary public (notario) and signed by both parties.

3. Public Deed (Escritura Pública): The minuta is elevated to a public deed (escritura pública) before a notary. This is the formal legal instrument that transfers ownership.

4. Registration: The escritura pública is registered with SUNARP, which updates the public record to reflect the new owner. Registration is what makes the transfer legally complete and enforceable against third parties.

The entire process typically takes 30–90 days from initial agreement to registered title, depending on the complexity of the transaction and the speed of the notary and registry.

Do You Need to Be Present in Peru?

No. Foreign buyers can complete a real estate transaction in Peru through a power of attorney (poder notarial). You authorize a trusted representative — typically your attorney — to sign documents and complete the registration process on your behalf. The power of attorney must be notarized and, if executed outside Peru, apostilled under the Hague Convention.

This makes the process genuinely accessible for international investors who cannot travel to Peru for every step of the transaction.

Taxes and Costs

The main costs associated with a real estate purchase in Peru are:

Transfer Tax (Alcabala): 3% of the purchase price, paid by the buyer. The first 10 UIT (approximately $15,000 USD at current rates) is exempt.

Notary and Registry Fees: Typically 0.5–1% of the transaction value, covering the notary's fees and the SUNARP registration costs.

Legal Fees: Variable, but typically 1–2% of the transaction value for a qualified attorney handling due diligence, document preparation, and registration.

There is no stamp duty or additional transfer tax beyond alcabala. Capital gains on the sale of real estate are subject to income tax at 5% for individuals (on the gain, not the sale price), which is low by international standards.

Corporate Structures

Many international investors choose to hold Peruvian real estate through a Peruvian company (typically a Sociedad Anónima Cerrada, or SAC) rather than in their personal name. The advantages include liability protection, easier transfer of ownership interests, and potential tax planning benefits. A Peruvian attorney can advise on whether a corporate structure makes sense for your specific situation.

Working With the Right Advisors

The legal framework for foreign real estate ownership in Peru is clear and investor-friendly. The complexity lies in execution: identifying properties with clean title, navigating the notarial process, and ensuring that the registration is completed correctly.

Rafael Caballero and Luis Armando Calle work with a network of qualified Peruvian attorneys and notaries who have handled transactions for international buyers across Peru's key investment corridors. If you're considering a purchase, the first step is a conversation about the specific property and what due diligence looks like for that asset.