Real Estate Investment in Peru: A Promising and Tax-Efficient Opportunity

Peru has emerged as a highly attractive destination for real estate investment, offering both promising returns and a favorable legal and tax framework. The sector has demonstrated consistent growth over the last years, fueled by increasing urban development, infrastructure expansion, and a rising demand for both residential and commercial properties.

One of the key advantages of real estate investment in Peru is its beneficial tax treatment, both at the entry and exit points. The Peruvian tax system offers incentives that make real estate transactions more efficient and financially appealing for investors. The capital gains tax structure and property transfer mechanisms are designed to encourage investment, providing a level of certainty and stability that is crucial for both domestic and foreign stakeholders.

While major urban centers such as Lima continue to attract significant investment, a new and rapidly growing trend has emerged: real estate development in the Peruvian Amazon. The region’s unparalleled natural beauty, biodiversity, and increasing focus on eco-tourism have positioned it as a prime location for high-value real estate projects. Investors are recognizing the potential of luxury lodges, sustainable resorts, and nature-focused developments, capitalizing on the area’s unique appeal to both local and international markets.

We support you in all aspects of your real estate project.

Octavio Salazar, Corporate Lawyer & Tax Expert, ECOVIS PERÚ, Lima City, Peru

From a tax perspective, Peru offers various structuring mechanisms that allow investors to optimize their returns. Real estate transactions can be structured through special-purpose vehicles (SPVs) to manage capital gains taxation more efficiently. Additionally, Peru has a relatively low tax burden on rental income, with a fixed 5% income tax on gross rental revenues for individual investors, significantly lower than in other Latin American markets. For corporate investors, depreciation rules on real estate assets provide an additional layer of tax efficiency, making long-term holdings even more attractive.

Another important advantage is the tax treatment of foreign investors. Under Peruvian tax regulations, non-resident investors selling real estate assets in Peru are subject to a capital gains tax of 30%. However, through careful planning and the use of double taxation treaties, investors can achieve significant tax savings, making Peru a highly competitive jurisdiction for international real estate investment. As the demand for real estate investment opportunities grows, Peru remains a market of great potential, offering a combination of strong returns, strategic tax advantages, and new frontiers in sustainable development.

For further information please contact:

Octavio Salazar, Corporate Lawyer & Tax Expert, ECOVIS PERÚ, Lima City, Peru
Email: octavio.salazar@ecovis.com.pe