The cost of buying property in Peru: taxes & fees
Buying property in Peru involves several costs beyond the purchase price. Understanding these expenses is essential for any potential buyer.
This guide provides an overview of one-off purchase costs, ongoing expenses, and financial considerations specific to property ownership in Peru.
One-off Purchase Costs
When buying property in Peru, you should budget for several one-off costs. These typically include the transfer tax, notary and registration fees, and legal assistance costs.
Overall, you might expect these additional costs to range from 4% to 8% of the property's purchase price.
Transfer Tax and Notary Fees
The transfer tax, known as the 'Impuesto de Alcabala', generally applies to property purchases and can vary based on the property's value. You should check current rates with a local expert.
Notary fees and registration costs will also apply and can range depending on the complexity of the transaction and the property's price.
Legal and Conveyancing Fees
Engaging a local lawyer is advisable to navigate the property purchasing process in Peru. Legal fees can vary but typically range from 1% to 3% of the purchase price.
It's essential to have a trusted legal professional to ensure compliance with local regulations.
Worked Example
For a property priced at approximately $100,000, total one-off costs could be between $4,000 and $8,000, including transfer tax and legal fees.
This means you should budget a total of around $104,000 to $108,000 to complete the purchase, depending on specific fees incurred.
Recurring Costs of Ownership
After purchasing a property, be prepared for ongoing costs. These typically include annual property taxes, community fees for communal living, and utility bills.
Annual property taxes in Peru are generally low, often around 0.2% to 1% of the property's assessed value.
Mortgage Costs for Non-Residents
For non-residents seeking to finance property purchases, mortgage options can be limited. Generally, local banks may offer loans but require a higher deposit, often around 30% or more of the property value.
Interest rates vary, so it’s essential to consult with various banks or a financial advisor for the best options.
Frequently asked questions
What is the typical transfer tax on property purchases in Peru?
The transfer tax called 'Impuesto de Alcabala' generally ranges between 3% and 5% of the purchase price. Verify current rates with a local expert.
What additional costs should I expect when buying property in Peru?
Beyond the purchase price, you should budget for legal fees, notary fees, registration costs, and transfer tax, usually totalling 4% to 8% of the property price.
Are there ongoing costs for property ownership in Peru?
Yes, expect to pay annual property taxes, community fees for shared facilities, utilities, and insurance. Budget for these ongoing costs as part of ownership.
Can non-residents get a mortgage in Peru?
Yes, but options may be limited, and you will likely require a larger down payment, often around 30% of the property's value. Check with local banks for details.
How much are annual property taxes in Peru?
Annual property taxes generally range from 0.2% to 1% of the property's assessed value, depending on its location and characteristics.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed September 2026.