Can a foreigner buy a house in Peru? Yes, by fulfilling a series of requirements.
Buying Property in Peru: A Guide for Foreign Investors
When a foreign client wants to invest in real estate in Cusco and Peru, F2F CUSCO provides all the assistance through our Real Estate Personal Shopper service to ensure that your investment is safe and appropriate.
If you are a foreigner and want to buy a house or land in Peru, you should know that foreigners have few restrictions on the acquisition of property.
These restrictions are set by Article 71 of the Political Constitution of Peru:
«Article 71 – Foreigners’ property. Regarding property, foreigners, whether individuals or legal entities, are in the same condition as Peruvians, without being able to invoke any exception or diplomatic protection. However, within fifty kilometers of the borders, foreigners cannot acquire or possess, by any means, mines, lands, forests, waters, fuels, or sources of energy, directly or indirectly, individually or collectively, under penalty of losing, for the benefit of the State, the right so acquired. The exception is the case of public necessity expressly declared by supreme decree approved by the Council of Ministers in accordance with the law.»
Therefore, foreign citizens CAN buy properties in Peru even if they are not physically present in Peruvian territory.
Procedure for a foreigner to buy a house in Peru
These are the requirements that foreign citizens who wish to invest in real estate in Peru must comply with, depending on their situation.
| Scenario 1: FOREIGN INDIVIDUAL ENTERS PERU AND BUYS A HOUSE – Entering Peru with a Business Visa will allow you to sign a contract anywhere in the territory. – Entering with a Tourist Visa and requesting a Special Permit from Immigration to sign contracts will also allow you to sign purchase contracts. If the property is owned by a married couple, both spouses must also be involved in the purchase. | Scenario 2: FOREIGN INDIVIDUAL BUYS A HOUSE WITHOUT BEING IN PERU In this case, the buyer must go to a Peruvian consulate in their place of residence and request a power of attorney to be granted to a person residing in Peruvian territory. This power of attorney must be presented during the purchase contract process. If the buyer is married, their spouse must also grant the same power of attorney. This power of attorney must be sent as «consular parts» so that the signature of the consul is also legalized by the Peruvian Ministry of Foreign Affairs. After this, it is sent to the mandate and power registry of the corresponding registry office. Once this power of attorney is registered, the appointed person can sign purchase documents on behalf of the foreign citizen. |
Foreign citizens who buy a property in Peru, like Peruvian citizens, are required to pay the transfer tax of 3% of the property purchase value, known as «alcabala.» This amount is deducted by 10 UIT before payment.
Legal solutions if the spouse of a foreign citizen who wishes to buy a property in Peru cannot travel:
| Solution 1: SPOUSE GRANTS POWER OF ATTORNEY TO PARTNER TO BUY PROPERTY IN PERU ON THEIR BEHALF – The power of attorney that one spouse grants to the other must be done before a Peruvian consul. – The consular power of attorney must be sent to Peru for validation of the consular signature by the Ministry of Foreign Affairs. – The last step will be to request the registration of this power of attorney in the Public Registries of Peru. | Solution 2: THE SPOUSE WHO TRAVELS TO PERU BUYS THE PROPERTY AND THEN THEIR PARTNER RATIFIES THE PURCHASE In this case, it should be stated in the purchase contract and in the public deed that these documents will be subject to the spouse’s ratification. The registration will not be made until the ratification is received either on a subsequent trip of the spouse to Peru or by sending a power of attorney indicating this ratification. |
How can one obtain permission to sign contracts in Peru?
The Special Permit for Contract Signing (SPCS) grants temporary foreign citizens the authority to sign public or private commercial and financial documents. It does not, however, authorize any income-generating activities, whether independent or subordinate.
With this permit, you can perform the following actions:
- Open a bank account.
- Sign contracts of employment, sale, and lease.
- Obtain notarial certifications such as travel authorizations.
The SPCS offers great flexibility for foreign citizens who want to engage in commercial activities while in Peru.
Foreign citizens who are tourists or students in Peru and need to sign public or private documents can apply for the SPCS. The permit is valid for a maximum of 30 days, depending on the citizen’s allowed length of stay in the country.
Requirements and process
Cancel your application process (code 07562) at Banco de la Nación. The cost as of 2021 is S/ 15.80.
You must be within the national territory and have regular migratory status. Identify yourself with your temporary migratory card and/or passport, a valid travel document, or Andean migration card, which must be in force. Use the same document to make the payment at Banco de la Nación.
Be careful when entering your personal information. If you apply through the Virtual Agency, you must present the PA form, which can be downloaded at the following link: http://sut.pcm.gob.pe/sutArchivos/file_35_20210407_145145.pdf)
In-person attention is available at the different Zonal Headquarters. Virtual attention can be requested through the Virtual Agency at https://agenciavirtual.migraciones.gob.pe/agencia-virtual/identidad or online services at https://cel.migraciones.gob.pe:8081/pesd2/PEFC_Inicio.
The permit to sign contracts is directed towards foreign citizens over 18 years of age with temporary migratory status.
In conclusion, can foreigners purchase a house in Peru? Absolutely! At F2F CUSCO, we have helped countless international clients through every step of the investment process. In fact, a significant portion of our clientele are foreign investors who have trusted us to guide them in their property purchases. So, if you are an investor looking to buy property in Peru, we invite you to explore our services and discover how we can help make your investment journey a success.
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Real Estate Buyer’s Agent service in Perú
Enrique L. Gonzalez
f2fcusco@gmail.com
+51 951 066 165
CEO F2F CUSCO
