Countries › Peru › Guide › 11. Real estate and land › Tax on rental income in Peru: 5 percent effective for resident and non resident individuals, 30 percent for foreign companies, monthly payments, the 6 percent minimum rent and imputed rent

Tax on rental income in Peru: 5 percent effective for resident and non resident individuals, 30 percent for foreign companies, monthly payments, the 6 percent minimum rent and imputed rent

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

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

Resident individuals pay 6.25 percent on rent after a flat 20 percent deduction, an effective 5 percent of gross rent, through monthly payments that since 2026 follow rent actually received. When the landlord is non resident, the tenant withholds 5 percent of gross rent for an individual and 30 percent for a company, while Peruvian companies pay 29.5 percent on net income and charge IGV. For tax purposes rent is presumed to be at least 6 percent of the property's value, and property lent for free produces imputed rent of 6 percent of its assessed value.

USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 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

Effective income tax on gross rent, resident individual	5 %TUO LIR art. 36, 52-A, 84, as of 2026-10-28 · in force
Monthly payment rate on 80% of rent received	6.25 %TUO LIR art. 84 (Ley 32541), as of 2026-10-28 · in force
Withholding on rent paid to a non resident individual (on gross)	5 %TUO LIR art. 54 e), 76 a), as of 2026-10-28 · in force
Withholding on rent paid to a non resident company (on gross)	30 %TUO LIR art. 56 j), 76 a), as of 2026-10-28 · in force
Minimum presumed annual rent	6 % of property valueTUO LIR art. 23 a), as of 2026-10-28 · in force
Imputed rent on property lent for free	6 % of assessed valueTUO LIR art. 23 d), as of 2026-10-28 · in force

The rule

1. First category income includes rent in cash or kind from leasing or subleasing property, services supplied by the landlord and taxes the tenant pays on the landlord's behalf; for furnished property the whole rent counts. Rent is presumed, without proof to the contrary, to be not less than 6 percent of the property's value, except where special lease laws prevent it or the tenant is the public sector, a museum, library or zoo; between related parties transfer pricing rules apply instead. Improvements by the tenant that benefit the owner and need not be reimbursed are also income.TUO Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF); art. 23 letter a) last paragraph added by Decreto Legislativo Nº 1112 (published 29 June 2012), Art. 23 letters a) and c), 2012-06-29 official text · verified 2026-10-28

2. Where owners let others occupy a property for free or at an undetermined price, imputed rent of 6 percent of the property's assessed value for the property tax is taxed, and the property is presumed occupied all year unless the owner proves otherwise.
Example: A S/ 500,000 assessed apartment lent to a relative: imputed rent S/ 30,000; tax S/ 1,500.00 a year. / About US$434.53 a year.TUO Ley del Impuesto a la Renta; art. 23 letter d) as amended by Ley Nº 27804 (2 August 2002), Art. 23 letter d), 2002-08-02 official text · verified 2026-10-28

3. Resident individuals deduct a flat 20 percent from gross first category income and pay 6.25 percent on the net capital income, an effective 5 percent of gross rent.TUO Ley del Impuesto a la Renta; art. 36 and art. 52-A as amended by Decreto Legislativo Nº 1112, Art. 36 and art. 52-A, 2012-06-29 official text · verified 2026-10-28

4. Resident landlords make monthly advance payments of 6.25 percent on 80 percent of the gross rent received, using the SUNAT lease receipt; tenants must ask the landlord for that receipt. Owners with only imputed rent do not make monthly payments and pay annually.
Cost to do it: On S/ 4,000 a month: S/ 200.00 a month.
Example: S/ 4,000 x 80% x 6.25% = S/ 200.00 a month, S/ 2,400.00 a year. / About US$57.94 a month.TUO Ley del Impuesto a la Renta; art. 84 first paragraph as amended by Ley Nº 32541 (published 31 December 2025, in force 1 January 2026), Art. 84, 2025-12-31 official text · verified 2026-10-28 · changed: Ley Nº 32541 (31 December 2025, in force 1 January 2026) bases the monthly payment on rent actually received (renta bruta percibida) instead of rent accrued.

5. Anyone who pays Peruvian source income to a non resident must withhold and pay the tax as a definitive tax by the monthly deadline. For first category income, the whole amount paid is treated as net income. Non resident individuals pay 5 percent on other capital income, which includes rent; non resident companies pay 30 percent on other income.
Example: S/ 4,000 monthly rent: withholding S/ 200.00 for a non resident individual, S/ 1,200.00 for a non resident company. / About US$57.94 and US$347.62 a month.TUO Ley del Impuesto a la Renta; art. 76 letter a) as replaced by Decreto Legislativo Nº 972 (10 March 2007, in force 1 January 2010); art. 54 letter e); art. 56 letter j), Art. 76, art. 54 e) and art. 56 j), 2007-03-10 official text · verified 2026-10-28

6. Rent earned by a Peruvian company is business income taxed at 29.5 percent of net income, and the lease is a service subject to IGV.TUO Ley del Impuesto a la Renta art. 55; TUO Ley del IGV e ISC art. 3 letter c) numeral 1, Art. 55 (LIR); art. 3 c) 1 (IGV), 2012-07-07 official text · verified 2026-10-28

Landlord	Rule	Tax per month S/	Tax per year S/	Tax per year US$
Resident individual	6.25% on 80%	200.00	2,400.00	695.25
Non resident individual	5% on gross, tenant withholds	200.00	2,400.00	695.25
Non resident company	30% on gross, tenant withholds	1,200.00	14,400.00	4,171.49
Peruvian company	29.5% of net income plus IGV on rent	Depends on costs	Depends on costs

Tax on S/ 4,000 monthly rent (S/ 48,000 a year), 2026 (USD at S/ 3.452)

Worked example

A resident lets an apartment for S/ 4,000 a month. Each month they pay S/ 200.00 with the SUNAT lease receipt, S/ 2,400.00 a year (US$695.25); if the tenant skips March, no payment is due for March under the 2026 cash basis rule.
A US based owner lets the same apartment to a Peruvian company. The company withholds S/ 200.00 a month and pays it to SUNAT by the monthly deadline; if the owner were a US company, the withholding would be S/ 1,200.00.
Setting rent of S/ 1,500 a month on a property worth S/ 500,000 is below the 6 percent floor (S/ 30,000 a year), so tax is computed on S/ 30,000 a year.

Step by step

Resident landlord: register with SUNAT for first category income, issue the lease receipt and pay 6.25 percent on 80 percent of rent received by the monthly deadline.
Tenant paying a non resident landlord: withhold 5 or 30 percent of each payment and pay it by the monthly deadline; keep the withholding certificate for the landlord.
Check the 6 percent of value floor when setting rent, especially for related tenants or below market leases.
Owners lending property for free declare imputed rent annually.

Common traps

Non resident landlords get no 20 percent deduction: withholding applies to the whole payment.
A company landlord must charge IGV on rent; an individual must not.
Below market rent does not lower the tax base below 6 percent of the property's value.
Argentina has no tax treaty with Peru, so Argentine landlords bear the full Peruvian withholding; see The Argentine Thread for the Argentine side.

Sources

← Tax on selling property in Peru: 5 percent on residents' and non resident individuals' gains, 30 percent for foreign companies, the home and pre 2004 exemptions, habitual sellers and payment before the deedResidential and commercial leases in Peru: freedom of contract, the 10 year cap, termination for non payment, sale of the leased property and notarial eviction under Ley 30933 →

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