Countries › Peru › Guide › 11. Real estate and land › Buying and owning property in Peru: foreign ownership and the 50 km border zone, how title passes and is registered with SUNARP, alcabala and property tax, and the tax on selling

Buying and owning property in Peru: foreign ownership and the 50 km border zone, how title passes and is registered with SUNARP, alcabala and property tax, and the tax on selling

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-28 · Status: Stable

Foreigners, whether people or companies, may own Peruvian property on the same terms as Peruvians, except that within 50 km of the borders they may not acquire land, mines, forests, waters or energy sources unless a supreme decree authorizes it. Ownership passes when the parties agree, but only a registered title with SUNARP protects the buyer against double sales and third parties, and registration requires a public deed, the seller as registered owner, and proof that the alcabala and property tax are paid. The buyer pays a 3 percent alcabala on value above 10 UIT (S/ 55,000 in 2026), owners pay an annual property tax of 0.2 to 1.0 percent of assessed value, and on a later sale a non resident individual pays 5 percent and a non resident company 30 percent on the gain.

USD figures use S/ 3.446 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 26 October 2026, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT based amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.

Key facts

Foreign individuals and companies may own property on the same terms as Peruvians	Allowed, same as nationals textConstitución 1993 art. 71, as of 2026-10-28 · in force
Border strip where foreigners may not acquire land, mines, forests, waters or energy sources without a supreme decree	50 kmConstitución 1993 art. 71, as of 2026-10-28 · in force
Expropriation compensation	Prior cash payment of appraised value including damages, challengeable in court textConstitución 1993 art. 70, as of 2026-10-28 · in force
When ownership of a specific property passes	On agreement (sola obligación de enajenar), registration decides conflicts textCódigo Civil art. 949 and 1135, as of 2026-10-28 · in force
Effect of SUNARP registration	Priority and protection of good faith buyers for value against causes not shown in the registry textCódigo Civil art. 2014 (Ley 30313), art. 2016 and 2022, as of 2026-10-28 · in force
SUNARP review fee for registering a sale	0.81 % of UITTUPA SUNARP (DS 008-2004-JUS) procedure 4.1.2.1, as of 2026-10-28 · in force
SUNARP registration fee on a sale above S/ 35,000	0.3 % of valueTUPA SUNARP (DS 008-2004-JUS) procedure 4.1.2.1, as of 2026-10-28 · in force
Maximum SUNARP term to register a sale	35 daysTUPA SUNARP (DS 008-2004-JUS) procedure 4.1.2.1, as of 2026-10-28 · in force
Alcabala rate, paid by the buyer only	3 %TUO Ley de Tributación Municipal art. 25 (Ley 27963), as of 2026-10-28 · in force
Alcabala borne by the seller	0 %TUO Ley de Tributación Municipal art. 25 (Ley 27963), as of 2026-10-28 · in force
Alcabala untaxed band (first 10 UIT of value), 2026	55000 PENTUO Ley de Tributación Municipal art. 25; DS 301-2025-EF (UIT S/ 5,500), as of 2026-10-28 · in force
Alcabala base	Transfer value, not lower than the assessed value adjusted by the Lima wholesale price index textTUO Ley de Tributación Municipal art. 24 (DL 952), as of 2026-10-28 · in force
Property tax rate on the first 15 UIT of assessed value	0.2 %TUO Ley de Tributación Municipal art. 13, as of 2026-10-28 · in force
Property tax rate on assessed value above 60 UIT	1.0 %TUO Ley de Tributación Municipal art. 13, as of 2026-10-28 · in force
Property tax band limits, 2026 (15 and 60 UIT)	82500 / 330000 PENTUO Ley de Tributación Municipal art. 13; DS 301-2025-EF, as of 2026-10-28 · in force
Tax on real estate gains of non resident individuals	5 %LIR art. 54 b) (DL 1258), as of 2026-10-28 · in force
Tax on real estate gains of non resident companies (other income)	30 %LIR art. 56 j), as of 2026-10-28 · in force
Individual presumed a habitual seller from this sale in the tax year	3 salesLIR art. 4 (Ley 29492), as of 2026-10-28 · in force

The rule

1. Foreigners, whether individuals or legal entities, are in the same position as Peruvians with respect to property and may not invoke any exception or diplomatic protection. However, within fifty kilometres of the borders, foreigners may not acquire or possess, under any title, mines, land, forests, waters, fuels or energy sources, directly or indirectly, individually or through a company, on pain of losing the right so acquired to the State. The only exception is public necessity expressly declared by supreme decree approved by the Council of Ministers. Separately, property is inviolable: it may be expropriated only for national security or public necessity declared by law and after payment in cash of an appraised compensation that includes any damage, and the owner may challenge the value in court.
Cost to do it: No fee or permit to buy outside the border zone. Inside it, a foreign buyer or a Peruvian company with foreign owners needs a supreme decree approved by the Council of Ministers before acquiring; the sanction for acquiring without one is loss of the property to the State.
Example: A Chilean family buying a S/ 1,000,000 apartment in Miraflores, Lima, needs no authorization. A Peruvian subsidiary of a foreign group buying farmland near the border at Tacna is caught because the ban reaches indirect ownership through a company, and needs a supreme decree first. / The same applies to a US$290,192 purchase: outside the 50 km strip it is an ordinary purchase; inside it, the deal is void in practice without prior Council of Ministers approval.Constitución Política del Perú de 1993 (published 30 December 1993), Art. 70 and art. 71, 1993-12-30 official text · verified 2026-10-28

2. Ownership of a specific property passes by the seller's obligation to transfer it, that is, by the agreement itself, unless the law or the contract says otherwise. Registration is therefore not what makes the buyer owner, but it decides conflicts: if the same seller promises the same property to several buyers, the buyer in good faith whose title was registered first wins, and failing registration the one with the earlier dated title, preferring a document with a certain date. Priority in time of registration determines the preference of registered rights, and to oppose a real right over property against another holder of a real right, your right must have been registered first.
Cost to do it: Signing a private contract costs nothing in fees, but leaves the buyer exposed until the transfer is registered; see the SUNARP registration rule for registry fees.
Example: A buyer who pays S/ 1,000,000 under a private minuta and delays registration can lose the apartment to a second buyer in good faith who registers a later sale by the same owner first. / On a US$290,192 purchase, the protection comes from registering promptly at SUNARP, not from the signed contract or the payment.Código Civil, Decreto Legislativo Nº 295 (published 25 July 1984), Art. 949, art. 1135, art. 2016 and art. 2022, 1984-07-25 official text · verified 2026-10-28

3. A third party who acquires a right for value and in good faith from the person the registry shows as entitled to grant it keeps the acquisition once registered, even if the grantor's right is later annulled, rescinded, cancelled or terminated for causes not shown in the registry entries and the archived titles behind them. Good faith is presumed unless it is proven that the buyer knew the registry was inaccurate. A registry entry must be cancelled administratively when identity theft or forged documents are proven. Notaries must verify the identity of the parties through the RENIEC database and, for foreigners resident or not, through the Superintendencia Nacional de Migraciones records of foreigner cards, passports and entries; notarial acts disposing of or encumbering property located outside the notary's province are null.
Cost to do it: Due diligence is a professional cost agreed with the lawyer or notary; the law itself sets no fee for it. The protection only covers what is not visible in the registry entries and the archived titles, so reviewing the archived titles, not only the summary entry, is the buyer's job.
Example: If a seller's own purchase is later annulled for a defect that appears only in a document archived at SUNARP, a buyer who paid S/ 1,000,000 cannot rely on good faith, because the defect was in the archived title. / A foreign buyer signing a US$290,192 deed before a Lima notary will have their passport or foreigner card checked against Migraciones records, and the notary must be in the province where the property is located.Ley Nº 30313 (published 26 March 2015), first and second supplementary amending provisions, replacing art. 2013 and 2014 of the Código Civil and art. 4 and 55 of Decreto Legislativo Nº 1049, Decreto Legislativo del Notariado, Código Civil art. 2013 and art. 2014; Decreto Legislativo Nº 1049 art. 4 and art. 55, 2015-03-26 official text · verified 2026-10-28 · changed: Ley Nº 30313, published 26 March 2015, narrowed the good faith protection to causes not shown in the registry entries and the archived titles, allowed administrative cancellation of entries obtained by identity theft or forgery, and required notaries to check identity against RENIEC and Migraciones.

4. To register a sale of property, SUNARP requires the registration request form, a public deed (or, if the property is worth no more than 20 UIT, a registry form with notarized signatures), a contract stating the price, whether it was paid in full or in part and, if not paid, the form and term of payment, the property registered in the seller's name, proof of payment of the alcabala where due, and proof of payment of the property tax. Fees are 0.81 percent of the UIT for review (calificación) plus, for registration, 1.5 per thousand of the value of the act if it does not exceed S/ 35,000, or 3 per thousand when it does. The maximum term is 35 days unless extended or suspended. Registrars and notaries must require proof that the property tax and alcabala are paid before registering or formalizing a transfer.
Cost to do it: Review fee 0.81 percent of the UIT, S/ 44.55 in 2026 (about US$12.93), plus 3 per thousand of the whole value of the act when it exceeds S/ 35,000 (S/ 3,000 per S/ 1,000,000, about US$870.57). Notary fees for the public deed are additional.
Example: Registering a S/ 1,000,000 purchase: S/ 44.55 review plus S/ 3,000 registration, total S/ 3,044.55. / About US$883.50 in registry fees on a US$290,192 purchase, plus the notary.Texto Único de Procedimientos Administrativos de la SUNARP, approved by Decreto Supremo Nº 008-2004-JUS (27 July 2004), procedure 4.1.2.1 Compra venta, Registro de Predios; TUO de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 7 as replaced by Decreto Legislativo Nº 952 (published 3 February 2004), TUPA SUNARP procedure 4.1.2 (1) Compra venta; Ley de Tributación Municipal art. 7, 2004-07-27 official text · verified 2026-10-28

5. The alcabala is a municipal tax on transfers of urban or rural property, for value or free, in any form, including sales with retention of title. The taxpayer is the buyer or acquirer, the rate is 3 percent and it is borne exclusively by the buyer with no agreement to the contrary allowed. The first 10 UIT of the property's value are not taxed. The base is the transfer value, which may not be lower than the property's assessed value (autoavalúo) for the year, adjusted by the Lima wholesale price index. It must be paid in cash by the last business day of the month after the transfer, whatever the payment terms of the price. The first sale of property by construction companies is exempt except for the part of the value corresponding to the land; inheritances, advances on inheritance, partitions among heirs or original co owners and transfers of rights that do not carry ownership are not taxed.
Cost to do it: 3 percent of value above 10 UIT; the untaxed band is S/ 55,000 in 2026 (about US$15,960.53).
Example: Buying for S/ 1,000,000: (S/ 1,000,000 minus S/ 55,000) times 3 percent equals S/ 28,350, payable by the buyer to the district municipality by the last business day of the following month. / About US$8,226.93 on a US$290,192 purchase. Buying a new apartment from the developer, the alcabala applies only to the land portion of the price.Texto Único Ordenado de la Ley de Tributación Municipal, Decreto Supremo Nº 156-2004-EF (published 15 November 2004); art. 25 as amended by Ley Nº 27963 (published 17 May 2003); art. 21, 24 and 26 as replaced by Decreto Legislativo Nº 952 (published 3 February 2004), Art. 21 to 27, 2003-05-17 official text · verified 2026-10-28 · changed: Ley Nº 27963, published 17 May 2003, cut the untaxed band from the first 25 UIT of value in the original 1993 text to the first 10 UIT.

6. The property tax (impuesto predial) is an annual tax on the value of urban and rural property, including land and fixed buildings, collected by the district municipality where the property sits. The owner on 1 January is the taxpayer for the whole year; a buyer becomes the taxpayer from 1 January of the following year. The tax is cumulative and progressive on the total assessed value of the owner's properties in each district: 0.2 percent up to 15 UIT, 0.6 percent on the band above 15 and up to 60 UIT, and 1.0 percent above 60 UIT, with a minimum the municipality may set at 0.6 percent of the UIT. Owners file a return by the last business day of February each year and, after a transfer, by the last business day of the following month; the tax is paid in full by the last business day of February or in four quarterly instalments due in February, May, August and November. On a transfer, the seller must pay the whole year's tax by the last business day of the month after the transfer.
Cost to do it: In 2026 the bands are S/ 82,500 (15 UIT) and S/ 330,000 (60 UIT); the minimum the municipality may charge is S/ 33 (about US$9.58).
Example: An apartment with an assessed value of S/ 600,000: S/ 82,500 at 0.2 percent (S/ 165) plus S/ 247,500 at 0.6 percent (S/ 1,485) plus S/ 270,000 at 1.0 percent (S/ 2,700) equals S/ 4,350 a year. / About US$1,262.33 a year on an assessed value of about US$174,115. Assessed value follows official land and construction tables, not the purchase price.Texto Único Ordenado de la Ley de Tributación Municipal, Decreto Supremo Nº 156-2004-EF (published 15 November 2004); art. 8 as replaced by Decreto Legislativo Nº 952 (published 3 February 2004), Art. 8, 9, 10, 13, 14, 15 and 16, 2004-11-15 official text · verified 2026-10-28

7. Peru taxes gains on Peruvian property sold by non residents. Non resident individuals pay 5 percent on capital gains from the sale of real estate; non resident companies pay 30 percent as other income. For individuals, the sale of property is treated as business income, not a capital gain, when land is sold by urbanization or subdivision, when property was acquired or built to be sold, or when the seller is habitual, which the law presumes from the third sale in the same tax year (sales of parking spaces and storage rooms in the owner's building, inherited property and the seller's home are not counted), and habitual status lasts for the next two years. The sale of the home occupied by an individual seller who does not earn business income is not a taxable capital gain.
Cost to do it: 5 percent of the gain for a non resident individual; 30 percent for a non resident company.
Example: A non resident individual who bought for S/ 1,000,000 and sells for S/ 1,300,000 has a S/ 300,000 gain and pays S/ 15,000. A non resident company with the same gain pays S/ 90,000. / On a gain of about US$87,057: about US$4,352.87 for a non resident individual and US$26,117.24 for a non resident company.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF); art. 54 literal b) as amended by Decreto Legislativo Nº 1258 (published 8 December 2016, in force 1 January 2017); art. 4 as replaced by Ley Nº 29492 (published 31 December 2009); art. 1 and 2 as replaced by Decreto Legislativo Nº 945 (published 23 December 2003), Art. 54 b), art. 56 j), art. 1, art. 2 and art. 4, 2016-12-08 official text · verified 2026-10-28 · changed: Decreto Legislativo Nº 1258, published 8 December 2016, in force 1 January 2017, set the rate for non resident individuals on real estate gains at 5 percent, replacing the earlier 30 percent rate on income from real estate sales.

Item	Who pays	Rule	S/	US$
Alcabala on purchase	Buyer	3% on value above 10 UIT (S/ 55,000)	28,350.00	8,226.93
SUNARP review fee	Applicant, usually the buyer	0.81% of UIT	44.55	12.93
SUNARP registration fee	Applicant, usually the buyer	3 per thousand of value above S/ 35,000	3,000.00	870.57
Property tax, per year, on S/ 600,000 assessed value	Owner on 1 January	0.2% / 0.6% / 1.0% bands at 15 and 60 UIT	4,350.00	1,262.33
Tax on S/ 300,000 gain, non resident individual	Seller	5%	15,000.00	4,352.87
Tax on S/ 300,000 gain, non resident company	Seller	30%	90,000.00	26,117.24

Buying a S/ 1,000,000 home in Lima and selling it later for S/ 1,300,000, 2026 rules (USD at S/ 3.446)

Worked example

A foreign individual buys a Lima apartment for S/ 1,000,000 (about US$290,192). At signing and registration they pay alcabala of S/ 28,350 (US$8,226.93) and SUNARP fees of S/ 3,044.55 (US$883.50), a total of S/ 31,394.55 (US$9,110.43) before notary fees, or about 3.1 percent of the price.
If the municipality's assessed value is S/ 600,000, the annual property tax is S/ 4,350 (US$1,262.33). The seller remains liable for the property tax of the year of sale, because the buyer becomes the taxpayer only from 1 January of the next year.
Selling later for S/ 1,300,000 as a non resident individual, the S/ 300,000 gain is taxed at 5 percent: S/ 15,000 (US$4,352.87). Holding the same apartment through a non resident company would cost S/ 90,000 (US$26,117.24), so the holding structure matters as much as the price.

Step by step

Check the location: if any part of the land is within 50 km of a border and the buyer is foreign or foreign owned, stop and obtain a supreme decree before signing.
Obtain the property's registry file at SUNARP and review both the entries and the archived titles behind them, since good faith protection does not cover defects visible there; confirm the seller is the registered owner.
Ask the seller for proof that the property tax is paid; the registrar will require it, and on a transfer the seller owes the whole year.
Sign the contract stating the price and whether and how it was paid, then the public deed before a notary in the province where the property is located; the notary verifies a foreign party's identity against Migraciones records.
Pay the alcabala to the district municipality by the last business day of the month after the transfer, in cash, regardless of the payment terms agreed for the price.
File for registration at SUNARP with the deed and proof of alcabala and property tax payment; the maximum term is 35 days unless extended or suspended. Register promptly, because the first good faith buyer to register wins.
File the property tax return as the new owner by the last business day of the month after the transfer, and from the next year pay annually by the end of February or in four quarterly instalments.

Common traps

The border ban reaches indirect ownership: holding land within 50 km of a border through a Peruvian company with foreign shareholders is caught, and the sanction is loss of the property to the State.
Ownership passes on agreement, but an unregistered buyer can lose to a later buyer in good faith who registers first; a paid price and a signed minuta are not protection.
Registry good faith does not cover defects recorded in the archived titles, so a summary of the registry entry alone is not enough due diligence.
The alcabala base cannot be lower than the adjusted assessed value, so declaring a low price does not lower the tax, and the buyer cannot shift the tax to the seller by contract.
Buying a new unit from a developer avoids alcabala only on the building; the land portion is still taxed.
A third sale by an individual in the same tax year triggers habitual seller status, turning gains into business income for that year and the next two.
Notarial deeds over property outside the notary's province are null; use a notary in the province where the property is located.
Argentine buyers are treated like any other foreigner, but Peru does not appear on Argentina's list of double tax treaties in force, so the Peruvian tax on a sale gain applies with no treaty relief; see The Argentine Thread guide for the Argentine side.

Sources

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