Selling real estate in Peru as a non-resident (persona natural no domiciliada) involves a structured, clear legal process. Peruvian law guarantees equal private property protections to foreign citizens and residents alike, providing established channels for transfer and tax settlement overseen by local public notaries and the national tax authority (SUNAT).
1. The Legal and Regulatory Framework
Real estate transactions in Peru are formal, legal contracts finalized before a Public Notary (Notario Público) and recorded at the Public Registry (SUNARP – Superintendencia Nacional de los Registros Públicos).
Buyer & Seller Sign Private Sales Agreement (Minuta)
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├──► 1. Tax Verification (SUNAT): Income Tax Paid or Retained via Form 1662 / 1665
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├──► 2. Municipal Clearances: Present HR/PU Forms & Prove Predial Tax Settled
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├──► 3. Notary Office (Notaría): Buyer Pays Alcabala (3%) ──► Public Deed (Escritura Pública) Signed
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└──► 4. Public Registry (SUNARP): Ownership Title Officially Registered
Key Steps and Documentation
Property sales typically follow a multi-step procedure:
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Private Sales Agreement (Minuta de Compraventa): Drafted by a licensed attorney (Abogado), outlining the sale price, payment terms, and conditions.
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Public Deed (Escritura Pública): The formal transfer document executed by the Notary. The notary is legally obligated to verify that all applicable capital gains taxes and municipal taxes have been paid or withheld before executing the title.
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Public Registry Registration (Inscripción en SUNARP): The notary submits the Public Deed to SUNARP to officially register the buyer as the new owner.
Essential Seller Documentation
To proceed with a property sale in Peru, non-residents must provide:
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Valid Passport or CE: Unexpired Foreigner’s ID (Carné de Extranjería) or Passport.
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RUC (Registro Único de Contribuyentes): Your Peruvian tax identification number issued by SUNAT, required for all real estate transactions.
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SUNARP Title Excerpt (Copia Literal / Certificado de Registro Inmobiliario – CRI): Confirms clear legal ownership, precise boundaries, and verifies the absence of mortgages, liens, or encumbrances.
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Municipal Declarations (HR and PU Forms): The Hoja de Resumen (HR) and Predio Urbano (PU) documents issued by the local municipality (Municipalidad), detailing the property’s cadastral assessment.
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Real Estate Tax Clearance (Constancia de No Adeudo de Impuesto Predial): Proof that all local property taxes (Impuesto Predial) and municipal service fees (Arbitrios) are fully paid up to the quarter of the closing.
Remote Transactions (Power of Attorney)
You do not need to fly to Peru to complete a property sale. You can issue a Power of Attorney (Poder Especial) to a trusted legal representative or agent in Peru.
If signed abroad, the Power of Attorney must be notarized, stamped with a Hague Apostille (or legalized via a Peruvian Embassy/Consulate in non-Apostille countries), officially translated into Spanish by a Certified Public Translator in Peru (Traductor Público Juramentado), and registered in the SUNARP Mandates Registry (Registro de Mandatos y Poderes).
2. Tax Obligations for Sellers
Income tax on real estate sales is enforced nationally by SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria).
Capital Gains Tax (Impuesto a la Renta de Segunda Categoría)
Real estate profits for individuals are classified as Second Category Income (Renta de Segunda Categoría):
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Tax Rate: Capital gains tax is levied at an effective rate of 5% on the net profit.
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Net Profit Calculation: The taxable profit is calculated by deducting the updated cost basis (costo computable) from the gross sale price. The original purchase price is adjusted using the official Monetary Correction Index (Índice de Corrección Monetaria – ICM) published by the Ministry of Economy and Finance (MEF).
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Buyer Withholding Rule (Retención del No Domiciliado): Under SUNAT rules for non-residents, if the buyer is a Peruvian tax resident, they are legally required to withhold the 5% tax from the purchase proceeds at closing and pay it directly to SUNAT via Form 1662 / Code 3062 on your behalf.
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Key Exemptions:
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Properties Acquired Before Jan 1, 2004: Sales of properties bought prior to January 1, 2004, are completely exempt from capital gains tax.
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Primary Residence (Casa Habitación): If the property was your primary residence for at least two consecutive years and not used for commercial purposes, the sale may be exempt from capital gains tax under Peruvian law.
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Allocation of Closing Costs & Taxes
| Tax / Fee | Typical Rate / Basis | Payer (Default) | Recipient / Agency |
| Capital Gains Tax (Impuesto a la Renta) | 5% of net gain (updated via MEF index) | Seller | SUNAT |
| Property Transfer Tax (Alcabala) | 3% of the sale price (minus 10 UIT exemption) | Buyer | Local Municipality (Municipalidad) |
| Notary Fees (Gastos Notariales) | ~0.5% to 1% of property value | Negotiable (often Buyer or shared) | Notary Office |
| SUNARP Registry Fees | ~0.3% of property value | Buyer | SUNARP |
| Real Estate Brokerage Fee | Typically 3% to 5% + IGV (VAT) | Seller | Licensed Broker (Agente Inmobiliario) |
3. Financial Settlements and Transferring Proceeds
Peru operates a dual-currency financial system where real estate is commonly priced and settled in US Dollars (USD) alongside the national currency, the Peruvian Sol (PEN).
| Aspect | Standard Procedure |
| Settlement Currency | Contracts can specify payment in USD or PEN. Payments at closing are typically made via certified cashier’s checks (Cheque de Gerencia) issued by a Peruvian bank or direct bank-to-bank telegraphic wire transfer. |
| Notary Financial Validation | Under Peruvian anti-money laundering laws (Ley de Bancarización), all payments must be routed through traceable financial system channels. Notaries will record the check details or wire transaction vouchers directly in the Public Deed. |
| Repatriation Documentation | To transfer sales proceeds out of a Peruvian account to an international bank account, keep the signed Public Deed (Escritura Pública), official SUNAT tax payment vouchers (Form 1662 / 1665), and bank receipts to demonstrate the legal origin of funds. |
4. Preparing for Sale: A Checklist
To ensure a smooth, compliant transaction in the Peruvian market, complete these steps early:
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Hire an Independent Peruvian Lawyer & Broker: Engage a real estate lawyer (Abogado) and an accredited real estate broker registered with the Ministry of Housing (MVCS).
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Obtain or Update Your RUC: Secure an active tax identification number (RUC) from SUNAT.
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Obtain a SUNARP Certificado de Registro Inmobiliario (CRI): Verify that your title is free of liens, mortgages, or legal claims at the public registry.
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Settle Municipal Taxes (Impuesto Predial & Arbitrios): Visit the local municipality (Municipalidad) where the property is located to clear all property taxes and retrieve updated HR and PU forms.
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Prepare Power of Attorney (if remote): Draft a specific Poder Especial, attach an Apostille in your home country, and register it in Peru’s SUNARP Mandates Registry.
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Calculate the Adjusted Cost Basis: Work with a tax advisor or notary to calculate your adjusted acquisition cost (costo computable) using MEF indices to verify your exact capital gains tax liability.
Disclaimer: This guide is provided for informational purposes only and does not constitute formal legal or tax advice. Peruvian tax laws, municipal fees, and registry regulations are subject to statutory updates. Always consult a qualified Peruvian real estate attorney or certified public accountant (CPA) to review your specific situation.
