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Start here: the legal gateways every foreign investor crosses in Peru

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

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

Peru's Constitution puts foreign and domestic investment on the same footing and guarantees the free holding and disposal of foreign currency; DL 662 adds automatic authorization of foreign investment, free remittance of registered capital and profits once taxes are paid, and optional legal stability agreements for investments of US$5 million or more (US$10 million in mining and hydrocarbons). To operate, an investor forms a company of at least two shareholders by public deed registered in the Public Registry, or registers a branch of the foreign parent, and enrolls in SUNAT's taxpayer registry (RUC). Corporate tax is 29.5 percent and dividends paid abroad bear 5 percent withholding; the 18 percent sales tax is now being split differently each year between the national IGV and the municipal IPM.

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 and shown in the Banco Central de Reserva del Perú statistics series PD04640PD. Amounts set in US dollars by the law are quoted as written. Conversions are for orientation only.

Key facts

Corporate income tax rate, domiciled companies	29.5 %TUO LIR art. 55 (DL 1261), as of 2026-10-28 · in force
Withholding on dividends to non domiciled shareholders	5 %TUO LIR art. 56 e), as of 2026-10-28 · in force
Withholding on qualifying foreign loan interest	4.99 %TUO LIR art. 56 a), as of 2026-10-28 · in force
Withholding on royalties to non domiciled entities	30 %TUO LIR art. 56 d), as of 2026-10-28 · in force
General sales tax, total IGV plus IPM	18 %TUO IGV art. 17; DL 776 art. 76; Ley 32387, as of 2026-10-28 · in force
IGV national component, 2026	15.5 %Ley 32387, as of 2026-10-28 · in force
IPM municipal component, 2026	2.5 %Ley 32387 art. 2, as of 2026-10-28 · in force
IGV national component from 2029	14 %Ley 32387, third modifying complementary provision, as of 2026-10-28 · pending
Minimum monthly wage, private sector, from 1 October 2026	1230 PENDS 015-2026-TR art. 1.2, as of 2026-10-28 · in force
Minimum monthly wage after second step, subject to a 2027 decree	1300 PENDS 015-2026-TR art. 1.1, as of 2026-10-28 · pending
Tax unit (UIT), 2026	5500 PENDS 301-2025-EF art. 1, as of 2026-10-28 · in force
Foreign and national investment subject to the same conditions	Yes Constitution art. 63; DL 662 art. 2, as of 2026-10-28 · in force
Prior authorization of foreign investment required	No (automatic; registration after investing) DL 662 art. 3, as of 2026-10-28 · in force
Minimum investment for a legal stability agreement, sectors other than mining and hydrocarbons	5000000 USDLey 27342 art. 2, as of 2026-10-28 · in force
Minimum investment for a legal stability agreement, mining and hydrocarbons	10000000 USDLey 27342 art. 2, as of 2026-10-28 · in force
Remittance of profits and capital abroad	Free, no prior authorization, after taxes DL 662 art. 7; Constitution art. 64, as of 2026-10-28 · in force
Banking system selling rate, S/ per US$, 26 October 2026	3.446 PENBCRP series PD04640PD, as of 2026-10-26 · in force
Minimum shareholders for a company	2 personsLey 26887 art. 4, as of 2026-10-28 · in force
Maximum shareholders in an S.A.C.	20 personsLey 26887 art. 234, as of 2026-10-28 · in force
Maximum partners in an S.R.L.	20 personsLey 26887 art. 283, as of 2026-10-28 · in force
Border zone where foreigners may not hold land, mines, water or energy sources	50 kmConstitution art. 71, as of 2026-10-28 · in force
Peru and Argentina bilateral double taxation treaty	None listed in Argentina's official list of treaties in force Argentina official treaty list, as of 2026-10-28 · in force

The rule

1. National and foreign investment are subject to the same conditions. Production of goods and services and foreign trade are free. In contracts of the State and public law entities with domiciled foreigners, the foreigners submit to Peruvian law and courts and waive diplomatic claims, although financial contracts may be exempted from national jurisdiction. The State guarantees the free holding and disposal of foreign currency.
Example: A foreign owned company may keep its cash in US dollar accounts in Peru and convert to soles only when it chooses (art. 64). / No law requires converting a US$1,000,000 capital contribution into soles on arrival.Constitución Política del Perú de 1993, Art. 63 and art. 64, 1993-12-30 official text · verified 2026-10-28

2. Foreign investment in any sector and any lawful business or contractual form is promoted and guaranteed; it is authorized automatically and, once made, must be registered with the competent national body. Foreign investors and the companies in which they participate have the same rights and obligations as national investors and companies, and the law may never discriminate on the basis of national or foreign participation. Foreign investors may transfer abroad, in freely convertible currency and without prior authorization of any authority, after paying the taxes due: all of their registered capital, including proceeds of a sale of shares, capital reduction or liquidation, and all of their proven dividends or net profits, royalties and technology payments.
Example: Net profit after Peruvian taxes of S/ 344,600 may be remitted to the foreign parent without any authority's prior approval. / S/ 344,600 converts to US$100,000 at S/ 3.446.Decreto Legislativo Nº 662 (legal stability regime for foreign investment), Art. 1, art. 2, art. 3 and art. 7, 1991-08-29 official text · verified 2026-10-28

3. Before making the investment and registering it, a foreign investor may sign a legal stability agreement with the State that freezes the income tax regime in force at signing (covering the tax on dividends distributed to the investor), the free availability of foreign currency and remittance rights, and the right to non discrimination. To access the regime the investor must commit to contribute, through the national financial system, to the capital of a company already established or to be established, or to make risk investments with third parties, of at least US$10,000,000 in mining and hydrocarbons and at least US$5,000,000 in other sectors. Stability applies only to the holder of the agreement.
Cost to do it: Minimum committed investment: US$5,000,000 (about S/ 17,230,000) in general, US$10,000,000 (about S/ 34,460,000) in mining and hydrocarbons. Article 1 of Ley 27342 on the cost of income tax stability was later amended by Decreto Legislativo Nº 1516 (2021); that amended text could not be retrieved from an official source in this session.
Example: A S/ 13,784,000 manufacturing equity injection is a lawful investment but falls short of the S/ 17,230,000 equivalent of the US$5,000,000 floor. / US$4,000,000 of equity does not qualify; US$5,000,000 does, outside mining and hydrocarbons.Decreto Legislativo Nº 662 art. 10; Ley Nº 27342 (legal stability agreements under DL 662 and DL 757), DL 662 art. 10; Ley 27342 art. 2 and art. 3, 2000-09-06 official text · verified 2026-10-28

4. Within fifty kilometers of the borders, foreigners, whether individuals or companies, may not acquire or possess under any title mines, land, forests, water, fuels or energy sources, directly or indirectly, individually or through a company, on pain of losing the right to the State, unless a public necessity is expressly declared by supreme decree approved by the Council of Ministers. Elsewhere foreigners hold property on the same terms as Peruvians.Constitución Política del Perú de 1993, Art. 71, 1993-12-30 official text · verified 2026-10-28

5. A company is formed by at least two partners, individuals or legal entities; if it loses that minimum and does not restore it within six months, it dissolves by operation of law. It is formed by public deed containing the articles and bylaws, which must be registered in the Registry of its domicile, and it acquires legal personality only on registration. Acts carried out in the company's name before registration are valid only if the company is registered and ratifies them within the following three months; otherwise those who acted are personally, jointly and without limit liable.
Example: A foreign parent that wants to own 100 percent in substance still needs a second shareholder, commonly an affiliate holding one share.Ley Nº 26887 (Ley General de Sociedades), Art. 4, art. 5, art. 6 and art. 7, 1997-12-09 official text · verified 2026-10-28

6. A sociedad anónima may adopt the closely held regime (S.A.C.) if it has no more than twenty shareholders and no shares registered in the public securities market registry. In a sociedad comercial de responsabilidad limitada (S.R.L.) the capital is divided into equal participations that cannot be represented by securities, the partners may not exceed twenty and they are not personally liable for company debts.Ley Nº 26887 (Ley General de Sociedades), Art. 234 and art. 283, 1997-12-09 official text · verified 2026-10-28

7. A company formed and domiciled abroad establishes a branch in Peru by public deed registered in the Registry, containing at least the parent's certificate of good standing stating its articles and bylaws do not prevent foreign branches, a copy of its articles and bylaws, and the resolution to open the branch stating the capital assigned, that the activities fall within its corporate purpose, the branch domicile, at least one permanent legal representative in Peru with his or her powers, and submission to Peruvian law for the branch's obligations. A branch has no legal personality separate from its parent, the parent is liable for its obligations and any agreement to the contrary is void.Ley Nº 26887 (Ley General de Sociedades), Art. 396, art. 397 and art. 403, 1997-12-09 official text · verified 2026-10-28

8. All individuals, legal entities and other entities, national or foreign, domiciled or not in Peru, must register in SUNAT's Registro Único de Contribuyentes (RUC) if they are taxpayers or responsible for taxes administered by SUNAT, are entitled to tax refunds, use customs regimes, or are required by SUNAT because of their operations or assets. The RUC number is permanent and must be used in every filing with SUNAT and given to public entities, financial institutions and notaries.Decreto Legislativo Nº 943 (Ley del Registro Único de Contribuyentes), as amended by Decreto Legislativo Nº 1524 and Ley Nº 32080, Art. 2 and art. 3, 2003-12-20 official text · verified 2026-10-28

9. Companies domiciled in Peru pay income tax at 29.5 percent of net income, the rate in force since 1 January 2017 under Decreto Legislativo Nº 1261. Special rates exist by law for the agrarian, aquaculture and forestry sectors.
Example: Net taxable income of S/ 1,000,000 bears S/ 295,000 of income tax. / About US$290,192 of income bears about US$85,607 of tax.TUO de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Decreto Legislativo Nº 1261, Art. 55, 2016-12-10 official text · verified 2026-10-28

10. Non domiciled legal entities are taxed on Peruvian source income at: 5 percent on dividends and other profit distributions; 4.99 percent on interest on foreign loans, provided cash loans are shown to have entered Peru and the annual rate does not exceed the prevailing prime rate of the lender's market plus three points; 30 percent on royalties; 10 percent on ship and aircraft rental. Profits of a Peruvian branch or other permanent establishment of a foreign entity are deemed distributed on the due date of the annual income tax return, whether or not remitted.
Cost to do it: 5 percent withholding on dividends paid to a foreign shareholder.
Example: A dividend of S/ 344,600 to a foreign parent bears S/ 17,230 of withholding; S/ 327,370 is paid out. / A US$100 dividend bears US$5 of withholding; US$95 reaches the parent.TUO de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), dividend rate as amended by Decreto Legislativo Nº 1541, Art. 56, letters a), c), d), e) and second paragraph, 2022-03-26 official text · verified 2026-10-28

11. Total sales tax on operations subject to IGV stays at 18 percent, but Ley Nº 32387 raises the municipal promotion tax (IPM) by 0.5 points each fiscal year from 2026 to 2029, to a final 4 percent, and correspondingly lowers the IGV in article 17 of the IGV law to a final 14 percent, applying progressively. SUNAT's published composition: 2026 IGV 15.5 percent plus IPM 2.5 percent; 2027 IGV 15 percent plus IPM 3 percent; 2028 IGV 14.5 percent plus IPM 3.5 percent; 2029 IGV 14 percent plus IPM 4 percent.
Cost to do it: 18 percent on taxable sales and imports in every year of the schedule; only the split between national IGV and municipal IPM changes.
Example: A taxable sale of S/ 10,000 in 2026 carries S/ 1,550 IGV and S/ 250 IPM, S/ 11,800 in total. / About US$2,902 of value plus about US$522 of combined tax, about US$3,424 in total.Ley Nº 32387 (fiscal decentralization, FONCOMUN), amending DL Nº 776 art. 76 and the IGV law art. 17, Art. 2, fourth final complementary provision, first and third modifying complementary provisions, 2025-06-16 official text · verified 2026-10-28 · changed: From 1 January 2026 the 18 percent total is split 15.5 percent IGV and 2.5 percent IPM, instead of 16 percent and 2 percent; the split moves 0.5 points a year until 2029 (Ley Nº 32387 of 16 June 2025).

12. The minimum monthly wage (remuneración mínima vital) for private sector workers rises in two steps from S/ 1,130 to S/ 1,300: the first step of S/ 100 sets it at S/ 1,230 from 1 October 2026; the second step of S/ 70 is to be set by a supreme decree issued in the first half of 2027.
Cost to do it: S/ 1,230 per month minimum, before employer contributions and statutory bonuses.
Example: S/ 1,230 per month. / About US$357 per month.Decreto Supremo Nº 015-2026-TR, Art. 1, 2026-09-28 official text · verified 2026-10-28 · changed: Minimum wage raised from S/ 1,130 to S/ 1,230 from 1 October 2026; a further rise to S/ 1,300 requires a new decree in the first half of 2027.

13. During 2026 the tax unit (UIT), the reference index for amounts set in tax rules such as fines and thresholds, is S/ 5,500.
Example: 1 UIT = S/ 5,500; 15 UIT = S/ 82,500. / 1 UIT is about US$1,596.Decreto Supremo Nº 301-2025-EF, under Norma XV of the Código Tributario, Art. 1, 2025-12-17 official text · verified 2026-10-28

Fiscal year	IGV	IPM	Total	IGV plus IPM on S/ 10,000	Approx. USD
2025	16%	2%	18%	S/ 1,800	US$522
2026	15.5%	2.5%	18%	S/ 1,800	US$522
2027	15%	3%	18%	S/ 1,800	US$522
2028	14.5%	3.5%	18%	S/ 1,800	US$522
2029 onward	14%	4%	18%	S/ 1,800	US$522

Sales tax split under Ley Nº 32387 as published by SUNAT; the 18 percent total does not change. Tax on a S/ 10,000 taxable sale; USD at S/ 3.446 (26 October 2026), for orientation only.

Step	Rate	Soles	Approx. USD
Taxable profit		S/ 1,000,000	US$290,192
Corporate income tax	29.5%	S/ 295,000	US$85,607
Dividend declared		S/ 705,000	US$204,585
Dividend withholding	5%	S/ 35,250	US$10,229
Net to the foreign parent		S/ 669,750	US$194,356
Combined effective burden	33.025%	S/ 330,250	US$95,836

Profit to a foreign parent through a Peruvian company with S/ 1,000,000 of taxable profit, distributed in full as a dividend (TUO LIR art. 55 and art. 56 e)). Assumes book profit equals taxable profit and no treaty relief. USD at S/ 3.446.

Worked example

A US$100 dividend paid by a Peruvian S.A.C. to its foreign parent bears US$5 of Peruvian withholding (5 percent, TUO LIR art. 56 e)) and US$95 is remitted; DL 662 art. 7 lets the parent buy and send the dollars without prior approval.
S/ 1,000,000 of taxable profit becomes S/ 669,750 (about US$194,356) in the parent's hands after 29.5 percent corporate tax and 5 percent dividend withholding, a combined burden of 33.025 percent.
A branch earning the same S/ 1,000,000 is treated as having distributed its available profit on the annual return due date, so the 5 percent applies even if nothing is remitted (TUO LIR art. 56, second paragraph).
A worker on the minimum wage costs at least S/ 1,230 a month in salary from October 2026 (about US$357), before contributions and bonuses.

Step by step

Choose the vehicle: an S.A.C. (up to 20 shareholders, no listed shares), an S.R.L. (up to 20 partners, participations not securities) or a branch of the foreign parent (no separate personality, parent fully liable). Any company needs at least two shareholders (Ley Nº 26887 art. 4, 234, 283, 396 and 397).
If the investment will reach US$5,000,000 (US$10,000,000 in mining or hydrocarbons) and long term stability of the income tax and remittance regime matters, apply for a legal stability agreement before the investment is made and registered (DL 662 art. 10; Ley Nº 27342 art. 2).
For a branch, gather the parent's certificate of good standing, articles and bylaws and the board resolution assigning capital and naming a permanent legal representative in Peru (Ley Nº 26887 art. 403).
Sign the public deed of incorporation or branch establishment and register it in the Public Registry of the domicile; legal personality starts on registration (Ley Nº 26887 art. 5 and art. 6).
Ratify any contracts signed before registration within three months of registration, or the people who signed remain personally liable (Ley Nº 26887 art. 7).
Register the company in SUNAT's RUC and use the number in every filing and with banks and notaries (DL Nº 943 art. 2 and art. 3).
Bring capital in through the national financial system and register the foreign investment with the competent national body (DL 662 art. 1 a) and art. 3), keeping the evidence needed to remit capital and profits later (DL 662 art. 7).
Price contracts with 18 percent IGV plus IPM in mind, update invoicing systems for the new split each January to 2029, and budget payroll from the S/ 1,230 minimum wage (Ley Nº 32387; DS Nº 015-2026-TR).

Common traps

Single shareholder companies are not available for a foreign parent: losing the two shareholder minimum for six months dissolves the company by law (Ley Nº 26887 art. 4).
The 18 percent total does not change but the split does: invoices, ledgers and municipal allocations must show 15.5 percent IGV and 2.5 percent IPM in 2026 and a new split each year until 2029 (Ley Nº 32387; SUNAT composition table).
Branch profits are deemed distributed on the annual return due date, so dividend withholding of 5 percent is due even without a remittance (TUO LIR art. 56, second paragraph).
The 4.99 percent rate on foreign loan interest applies only if cash loans are shown to have entered Peru and the rate does not exceed the lender market prime rate plus three points; otherwise higher rates for non domiciled income apply (TUO LIR art. 56 a)).
Royalties paid abroad bear 30 percent withholding, far above the dividend rate, which matters when designing licensing between the parent and the Peruvian company (TUO LIR art. 56 d)).
Foreigners may not hold land, mines, water or energy sources within 50 kilometers of the borders, even through a Peruvian company, without a supreme decree declaring public necessity; the sanction is loss of the right (Constitution art. 71).
Legal stability belongs only to the holder of the agreement, and it must be sought before the investment is made and registered (Ley Nº 27342 art. 3; DL 662 art. 10).
Do not budget S/ 1,300 as the minimum wage yet: the second step needs a new supreme decree in the first half of 2027 (DS Nº 015-2026-TR art. 1.2).
Argentina: trade and investment ties with Argentina run under the general rules on this page; Argentina's official list of double taxation treaties in force does not include Peru, so flows between the two rely on each country's domestic rules. See The Argentine Thread guide for the Argentine side.