When helping a client look for a place to buy property that will guarantee the perfect mix of coastal sunshine, Andean highlands, and even a surrounding jungle, look no further than Peru! With one of the lowest costs of living in the world, money is stretched far without comprising on amenities and a relaxed lifestyle.
Peru Fast Facts
- Population: 29,849,303
- Capital City: Lima
- Climate: Varies from tropical in east to dry desert in west; cold in Andes
- Time zone: GMT-5
- Language: Spanish, Quechua
- Country Code: 51
- Main airport: Jorge Chavez International Airport in Lima
- Currency: Sol (1 Sol = approx. $0.26)
Famous Archaeological Sites
Peru is home to some of the most renowned archaeological sites in the world. A few are:
Machu Picchu is one of the most well-preserved Incan sites, and is officially one of the New Seven Wonders of the World.1
Choquequirao is in the city of Cusco and was once a rural retreat for the Incan elite.
Kuélap is an ancient lost city in the northern city of Chachapoyas.
Located in Trujillo, this restored Nik An temple is also known as the world's largest mud-brick city.
Reasonable Prices for Purchasing a Property2
The cost of living, including house prices, is relatively affordable.
The average house price is $180,096. Some sources note that you can live comfortably on $1500 per month. Most expats find it unnecessary to own a car, as public transportation is plentiful and supermarkets and shops are close by. The cuisine is a major plus for those looking to live in Peru. The cost for two dining out at an upscale restaurant is an average of $30, with many delicious options for casual dining at a much lower cost.
- Transfer tax (Alcabala): 3.00%, paid by buyer
- Notary fees: 0.0025% - 0.81%, paid by buyer
- Registration fee: 0.81%, paid by buyer
- Real estate agent's fee: 3.00% – 5.00%, paid by seller
- Costs paid by buyer: 3.91% – 4.06%
- Costs paid by seller: 3.00% – 5.00%
- Roundtrip transportation costs: 6.91% – 9.06%
Source: Global Property Guide3
Square Meter Prices in Latin America
- Brazil: $4,833
- Argentina: $3,660
- Panama: $3,606
- Chile: $3,256
- Mexico: $2,834
- Uruguay: $2,794
- Peru: $2,713
- Columbia: $2,189
- Costa Rica: $1,938
- Ecuador: $1,320
- El Salvador: $1,193
- Nicaragua: $893
Source: Global Property Guide4
Next, we answer some common questions that come up when buying or thinking about buying a property in Peru. Every country is different, so we are looking at the main points you want to be aware of for your clients.
Peru: Your Common Questions Answered
What best describes the current status of real estate markets in Peru at the moment?
A buyer’s market. This contrasts with what its currently like in many other places around the world. The political climate has influenced the market as well. President Pedro Castillo came into office in 2021. Soon after, it seemed the wealthier investors were pausing their investments due to uncertain times. Because this is in relation to the luxury market, the entire real estate picture is not affected.
What are the hurdles affecting the Peruvian real estate market?5
There are only a couple restrictions buyers should be aware of. Purchasers who are not Peruvian are not able to own land within 30 miles of the border. Because there are no cities within that range, this is rarely considered a hurdle.
The process of buying property in Peru is the same for foreigners and Peruvians. One check that will most certainly happen is to make sure the transaction isn’t originating from places known as tax havens in order to counter money laundering.
Even foreigners need to have a Peruvian bank account to complete a property purchase. While this may seem like a hurdle, opening a bank account—even
as a foreigner—is a simple and quick process.
Where are most buyers from?6
Peru draws buyers from all over the world, but mainly they come from Spain, the United Kingdom and the U.S. Peru has fantastic weather, coastal living and the amenities of the big city, which make the lifestyle appealing. Retirees tend to be drawn to Peru for these reasons.
What are some things buyers need to be aware of when purchasing a property in Peru?
Many purchases are paid for in cash, and often in U.S. dollars. It is possible for foreign buyers to obtain a mortgage through a Peruvian bank. Both citizens of Peru and foreign purchasers pay the same taxes when they purchase a home.
When it comes to commercial property and corporations, foreign entities must pay 30% tax, while individuals pay 5%. The introduction of the lower tax rate for individuals was intentionally implemented by the government to encourage foreign investment.
Has the rise of remote working influenced real estate purchasing?7
The increase in demand for properties in rural area and outside of the city limits has increased since the pandemic. Though many companies and corporations are headquartered in Lima, so there is also interest in the city properties as well.
1 Machu Picchu was designated a UNESCO World Heritage Site in 1983 and was named one of the New Seven Wonders of the World in 2007
3 Global Property Guide, https://www.globalpropertyguide.com/Latin-America/Peru/Buying-Guide
4 Data is based on Average per square metre (sq. m.) prices in US$/€ of 120-sq. m. apartments located in the centre of the most important city of each country, either the: Administrative capital; and/or Financial capital; and/or the centre of the rental market. https://www.globalpropertyguide.com/Latin-America/square-meter-prices