Buying Property in Lima, Peru as a Foreigner
Buying Real Estate In Lima
Is not only possible for foreigners—it’s relatively straightforward because Perú has some of the most open laws in Latin America when it comes to foreign ownership of property.
Whether you’re considering relocating, investing, or acquiring a second home, Lima stands out as an attractive market due to its affordability, urban development, and strong rental demand in certain districts and our real estate agency could help you with this.
No Citizenship Or Residency Required
One of the first questions many foreign buyers ask is whether they need to be Peruvian or have legal residency to own property and the answer is no.
Foreign nationals are allowed to buy, own, and sell real estate in Peru on the same terms as locals (except when selling because taxes will be 30% of the selling price while locals pay 5% or nothing with some exceptions), with only a few exceptions related to border zones (within 50 km of national borders, which Lima does not fall into).
If you want to reduce that 30% of the selling price, you could buy that property as a business to be able to apply deductions.
You can complete a purchase even as a tourist.
Step-By-Step Process For Buying Property
The overall purchase process in Lima typically follows these steps:
- Identify the property: Use local real estate websites, trusted agents, or referrals to find available properties in desired districts. I will gladly help you with that process.
- Sign a private agreement (Contrato de Arras): Once you agree on a price, a preliminary agreement is signed. A deposit (often 10%) is paid to secure the deal.
- Legal verification: A notary or lawyer checks the property’s title, history, liens, and legal standing through SUNARP (National Superintendency of Public Registries).
- Transfer the funds: You may use a Peruvian bank, or in many cases, a wire transfer from abroad to a Peruvian account is sufficient. Many deals are completed in U.S. dollars.
- Sign the final public deed (Escritura Pública): This is done before a notary and officially registers the property in your name or business.
Currency And Pricing
Most real estate transactions in Lima are priced and paid in U.S. dollars, which simplifies things for foreign investors. This dollarization helps protect buyers against exchange rate volatility and inflation. While you can pay in soles, it’s much more common for all negotiations, contracts, and transfers to happen in USD.
Notaries And Legal Due Diligence
Peru’s property system is centralized and relatively secure, thanks to the SUNARP registry. Still, legal due diligence is crucial. A notary public plays a vital role in verifying the legality of the transaction. It’s highly recommended to also hire a private attorney, especially if you don’t speak Spanish or are unfamiliar with Peruvian law.
Where Foreigners Usually Buy In Lima
Expats and investors generally focus on well-developed, safe, and accessible districts. These include:
- Miraflores: Ideal for lifestyle buyers and investors, this district is popular with tourists and expats. Properties close to the Malecón or Larcomar are especially in demand.
- San Isidro: A business hub with embassies, parks, and luxury apartments. Perfect for professionals and buyers looking for exclusivity.
- Barranco: Known for its bohemian atmosphere, Barranco has seen rising demand and appreciation. It blends art, culture, and residential charm.
- Surco (Chacarilla, Los Álamos): More suburban and family-oriented, this district offers homes with gardens, good schools, and quiet surroundings.
- La Molina: A preferred choice for families and long-term residents, La Molina offers large houses, private condominiums, and green areas. It’s known for its security, international schools, and peaceful environment, though traffic into central Lima can be heavy.
Property Types Available
Foreign buyers can choose from a variety of options depending on their budget and lifestyle. In Lima, you’ll find everything from ocean-view condos and modern high-rise apartments to colonial houses and suburban homes with yards. Furnished properties are common, and newer buildings often offer amenities like gyms, pools, and 24/7 security.
Can You Buy With A Company Or In Your Name?
You can buy as an individual or through a legal entity. Many investors choose to create a Peruvian company (Sociedad Anónima Cerrada – SAC) to buy multiple properties, especially for rental income or development purposes. For a single home or apartment, it’s generally easier to buy in your own name unless advised otherwise by a tax specialist. Remenber that when selling the property, tax to foreigners is 30% of the selling price.
Mortgage And Financing Options For Foreigners
Financing can be a challenge for non-residents. Most local banks require foreign buyers to have legal residency or proof of income in Peru. As such, many foreign investors purchase with cash or finance through banks in their home country. Some Peruvian banks offer credit lines to foreigners with solid financials, but documentation and approvals may take time.
Taxes And Fees Involved In Buying
Here are some of the key expenses you should expect when purchasing:
- Transfer tax (Alcabala): This is approximately 3% of the property value above 10 UITs (Unidad Impositiva Tributaria). It is paid by the buyer.
- Notary and registration fees: Combined, these usually range from 1.5% to 2% of the property value.
- Lawyer fees: Optional but strongly recommended. Costs vary but often represent 0.5% to 1% of the transaction value.
Ongoing Ownership Costs
After purchase, owners are subject to a modest annual property tax (Impuesto Predial) based on the cadastral value of the property, which is generally lower than market value. Municipal taxes are paid quarterly, and if your property is part of a building or condominium, you’ll likely have to pay a monthly maintenance fee (cuota de mantenimiento), which varies depending on building services.
Is It A Good Investment?
Lima’s property market has shown resilience over the past decades, especially in well-established districts. Rental demand is steady in touristic and business zones, and short-term rentals through platforms like Airbnb can offer attractive yields—if the building’s rules allow it.
Capital appreciation varies, but buying below market value or in developing areas can yield long-term gains.
Risks And Considerations
Like any international market, there are risks. Foreign buyers should be aware of:
- Overpricing targeted at foreigners—always do a comparative market analysis.
- Unregistered properties or titles with irregularities.
- Hidden debts like unpaid maintenance or property taxes.
- Changing political or economic climates that might affect investor sentiment.
Conclusion
Buying property in Lima as a foreigner is not only legal but increasingly common. The process is transparent, ownership rights are respected, and there are plenty of attractive neighborhoods to explore. While it’s always advisable to work with experienced local professionals, Lima remains a promising destination for those seeking a personal residence, a retirement plan, or an investment in one of South America’s most dynamic cities.
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