Buying a home in Peru: open to foreigners, except near the border

As a foreigner you may buy a home in Peru. Article 71 of the constitution says that foreigners are in the same position as Peruvians when it comes to property. There is one hard exception: within 50 kilometres of the border a foreigner may not acquire or own land, in any way, not even through a company. Anyone who does so anyway loses the property to the state. Only a decree of the Council of Ministers can make an exception.

What	The rule	Amount or term
Ownership as a foreigner	the same position as a Peruvian	no permit needed
Border zone	no land, mines, forests or water within 50 km of the border, directly or indirectly	only with a decree of the Council of Ministers
Alcabala	tax on the transfer, paid by the buyer	3% above the first 10 UIT (S/ 55,000 in 2026)
Alcabala deadline	pay at the municipality, in Lima at the SAT	by the last working day of the month after the transfer
Impuesto predial	yearly municipal tax for the owner on 1 January	can be spread over February, April, August and November
Paying the purchase price	through the bank	mandatory from S/ 2,000 or US$ 500

Where may you not buy?

The constitution lists minas, tierras, bosques, aguas, combustibles ni fuentes de energía. The Tribunal Registral of SUNARP, the land registry, wrote in 2022 that "tierras" covers both rural and urban land. According to the tribunal that is settled case law, in line with the Constitutional Court. The case concerned a house in the city of Tacna, which a Chilean heir wanted registered in her name. Registration was refused.

The 50 kilometres also apply to a flat in a border town, and also if you inherit the house. If the place you have in mind is near a border, have it established how far it is from the border before you sign anything. Otherwise a notary or SUNARP cannot put the property in your name.

What do you pay on the purchase?

The alcabala is the tax on the transfer of real estate. The buyer pays it. The basis is the purchase price, but no less than the value the municipality sets for tax purposes, the autovalúo. On the first 10 UIT, S/ 55,000 in 2026, you pay nothing; on the rest 3%. You pay by the last working day of the month after the transfer; after that interest accrues.

If you buy a new build directly from a construction company, that first sale is not subject to alcabala, except for the value of the land. In Lima notaries and registrars ask for the proof of payment, or a statement that you owe nothing, before they record the transfer.

Pay the purchase price through the bank. According to SUNAT amounts from S/ 2,000 or US$ 500 must go through a means of payment of the financial system, such as a transfer or a banker's cheque. How to transfer money from the Netherlands is in banking and payments in Peru.