Countries › Peru › Guide › 6. Taxes › Local taxes in Peru: property tax (predial), real estate transfer tax (alcabala), vehicle tax and the municipal share of the 18 percent IGV
Local taxes in Peru: property tax (predial), real estate transfer tax (alcabala), vehicle tax and the municipal share of the 18 percent IGV
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Last verified: 2026-10-28 · Status: Changing
District municipalities levy an annual property tax (Impuesto Predial) on land and buildings at 0.2 to 1.0 percent of the self assessed value, and provincial or district municipalities a 3 percent transfer tax (Impuesto de Alcabala) paid by the buyer of real estate on the value above 10 UIT (S/ 55,000 in 2026). Owners of cars, trucks and buses up to three years from first registration pay a 1 percent vehicle tax. The Impuesto de Promoción Municipal, charged inside the 18 percent IGV, rises from 2.5 percent in 2026 to 4 percent in 2029 as IGV falls by the same amount.
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. Conversions are for orientation only.
Key facts
| Predial rate up to 15 UIT of value | 0.2 %LTM art. 13, as of 2026-10-28 · in force |
|---|---|
| Predial rate above 15 and up to 60 UIT | 0.6 %LTM art. 13, as of 2026-10-28 · in force |
| Predial rate above 60 UIT | 1.0 %LTM art. 13, as of 2026-10-28 · in force |
| Alcabala real estate transfer tax (paid by buyer) | 3 %LTM art. 25 (Ley 27963), as of 2026-10-28 · in force |
| Untaxed slice of the alcabala base | 10 UITLTM art. 25 (Ley 27963), as of 2026-10-28 · in force |
| Vehicle tax rate (first three years) | 1 %LTM art. 33, as of 2026-10-28 · in force |
| Municipal promotion tax (IPM) rate for 2026 | 2.5 %Ley 32387 art. 2, as of 2026-10-28 · in force |
The rule
1. The Impuesto Predial is an annual tax on the value of urban and rural land, buildings and permanent fixtures that cannot be separated without damage. It is collected, administered and audited by the district municipality where the property is located, and the taxpayer is whoever owns the property on 1 January of the year; a buyer becomes the taxpayer from 1 January of the following year.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 8 as amended by Ley Nº 27305, Art. 8 and art. 10, 2004-11-11 official text · verified 2026-10-28
2. Predial is calculated on the self assessed value with a cumulative scale: 0.2 percent up to 15 UIT, 0.6 percent on the part above 15 and up to 60 UIT, and 1.0 percent above 60 UIT. Municipalities may set a minimum of 0.6 percent of the UIT at 1 January. Owners file a return by the last business day of February (and when they sell, buy or make changes above 5 UIT), and pay in full by the last business day of February or in four quarterly installments due the last business day of February, May, August and November, the last three adjusted for wholesale price inflation.
Example: A building self assessed at S/ 1,500,000 pays S/ 13,350 a year: S/ 165 on the first S/ 82,500, S/ 1,485 on the next S/ 247,500 and S/ 11,700 on the rest. / Self assessed value US$434,531: predial about US$3,867 a year.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), Art. 13, art. 14 and art. 15, 2004-11-11 official text · verified 2026-10-28
Example: A building self assessed at S/ 1,500,000 pays S/ 13,350 a year: S/ 165 on the first S/ 82,500, S/ 1,485 on the next S/ 247,500 and S/ 11,700 on the rest. / Self assessed value US$434,531: predial about US$3,867 a year.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), Art. 13, art. 14 and art. 15, 2004-11-11 official text · verified 2026-10-28
3. The Impuesto de Alcabala taxes transfers of urban and rural real estate, for consideration or free, including sales with retention of title. The buyer pays 3 percent, with no agreement to the contrary allowed, on the transfer value, which cannot be lower than the property's self assessed value for the year adjusted by the wholesale price index. The first 10 UIT of the value are not taxed. The first sale of a building by its builder is not subject, except for the part of the price corresponding to the land.
Cost to do it: 3 percent of the price above 10 UIT; on a S/ 1,500,000 purchase it is S/ 43,350 (about US$12,558).
Example: Price S/ 1,500,000: alcabala = 3 percent of (S/ 1,500,000 minus S/ 55,000) = S/ 43,350. / Price US$434,531: alcabala about US$12,558.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 21 and art. 24 as substituted by Decreto Legislativo Nº 952, art. 25 as amended by Ley Nº 27963, Art. 21, art. 22, art. 23, art. 24 and art. 25, 2003-05-17 official text · verified 2026-10-28 · changed: Ley Nº 27963 (17 May 2003) cut the untaxed slice from 25 UIT to 10 UIT.
Cost to do it: 3 percent of the price above 10 UIT; on a S/ 1,500,000 purchase it is S/ 43,350 (about US$12,558).
Example: Price S/ 1,500,000: alcabala = 3 percent of (S/ 1,500,000 minus S/ 55,000) = S/ 43,350. / Price US$434,531: alcabala about US$12,558.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 21 and art. 24 as substituted by Decreto Legislativo Nº 952, art. 25 as amended by Ley Nº 27963, Art. 21, art. 22, art. 23, art. 24 and art. 25, 2003-05-17 official text · verified 2026-10-28 · changed: Ley Nº 27963 (17 May 2003) cut the untaxed slice from 25 UIT to 10 UIT.
4. The Impuesto al Patrimonio Vehicular is an annual tax on owners of cars, pickups, station wagons, trucks, buses and coaches up to three years from their first registration, administered by the provincial municipality of the owner's domicile. The rate is 1 percent of the vehicle value (not lower than the Ministry of Economy's reference table), with a minimum of 1.5 percent of the UIT at 1 January (S/ 82.50 in 2026). Owners file a return by the last business day of February.
Example: A new pickup valued at S/ 150,000 pays S/ 1,500 a year for three years. / Vehicle value US$43,453: US$435 a year.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 30 as amended and art. 30-A added by Ley Nº 27616, Art. 30, art. 30-A, art. 31, art. 32, art. 33 and art. 34, 2001-12-29 official text · verified 2026-10-28
Example: A new pickup valued at S/ 150,000 pays S/ 1,500 a year for three years. / Vehicle value US$43,453: US$435 a year.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 30 as amended and art. 30-A added by Ley Nº 27616, Art. 30, art. 30-A, art. 31, art. 32, art. 33 and art. 34, 2001-12-29 official text · verified 2026-10-28
5. The Impuesto de Promoción Municipal applies at 2 percent to operations subject to IGV and follows the same rules; it funds the Fondo de Compensación Municipal. Ley Nº 32387 raises it by 0.5 points each year from 2026 to 2029 (2.5, 3, 3.5 and 4 percent) while the IGV falls by the same amount, so the combined 18 percent does not change.Texto Único Ordenado de la Ley de Tributación Municipal (Decreto Supremo Nº 156-2004-EF), art. 76 and art. 77, as amended by Ley Nº 32387, LTM art. 76 and 77; Ley 32387 art. 2, 2025-06-16 official text · verified 2026-10-28 · changed: From 1 January 2026 the IPM rises 0.5 points a year until it reaches 4 percent in 2029, offset by an equal cut in IGV.
| Tax | Base | Rate | Due | Rule |
|---|---|---|---|---|
| Impuesto Predial | Self assessed value of land and buildings at 1 January | 0.2% to 15 UIT (S/ 82,500), 0.6% to 60 UIT (S/ 330,000), 1.0% above | February, or quarterly February, May, August, November | LTM art. 13 to 15 |
| Impuesto de Alcabala | Transfer value, not below adjusted self assessed value | 3% above 10 UIT (S/ 55,000), paid by buyer | On transfer | LTM art. 21 to 25 |
| Impuesto al Patrimonio Vehicular | Vehicle value, first 3 years from registration | 1% (minimum 1.5% of UIT) | Annual return by end of February | LTM art. 30 to 34 |
| Impuesto de Promoción Municipal | Same base as IGV | 2.5% in 2026 rising to 4% in 2029 | Monthly with IGV | LTM art. 76; Ley 32387 |
Main municipal taxes for businesses and investors in Peru (UIT S/ 5,500 for 2026)
Worked example
- A foreign owned company buys a Lima warehouse for S/ 1,500,000 (US$434,531). As buyer it pays alcabala of S/ 43,350 (US$12,558) to the municipality.
- From 1 January of the following year it becomes the predial taxpayer; if the self assessed value is S/ 1,500,000, the annual predial is S/ 13,350 (US$3,867), payable in February or in four quarterly installments.
Step by step
- When buying property, pay alcabala before registering the transfer and file the predial change of ownership return by the last business day of the following month.
- File the annual predial return and pay by the last business day of February, or choose quarterly installments.
- For new vehicles, file the vehicle tax return with the provincial municipality and pay each year for the first three years.
- Update invoicing systems each 1 January to split IGV and IPM under Ley 32387.
Common traps
- The seller remains the predial taxpayer for the year of sale; price adjustments should allocate that year's predial.
- Alcabala cannot be shifted to the seller by contract; it is the buyer's tax by law.
- The first sale of a new building is outside alcabala except for the land, but it is subject to IGV.
Sources
- Gob.pe, Texto Único Ordenado de la Ley de Tributación Municipal (DS 156-2004-EF)
- Congreso de la República, Ley de Tributación Municipal with amendment notes
- Congreso de la República, Ley Nº 32387 consolidated text
- SUNAT, Resolución de Superintendencia Nº 000016-2026/SUNAT citing the 2026 UIT under DS 301-2025-EF
- BCRP statistics, SBS banking system selling exchange rate (PD04640PD)
Related pages
- real-estate/buying-and-owning-property
- taxes/vat
- taxes/tax-system-overview
- /country/peru/
- /calendar/
- Live dashboard
Related: Peru country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide
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