Peru Real Estate 2025: Foreign Ownership, Market Overview & Best Cities to Invest
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9/16/2025
✅ Can Foreigners Buy Property in Peru?
Yes — foreigners have equal rights to buy and own property including land, apartments, and commercial real estate, without restrictions.
🏠 Foreign ownership is fully recognized and protected under Peruvian law.
⚖️ Foreign Ownership Laws
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No limits on foreigners purchasing property
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Freehold ownership is granted upon registration
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Properties near military zones or sensitive areas may have restrictions (rarely enforced)
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Title must be registered with the Public Registry of Property
🏙️ Top Cities & Regions to Invest
🔹 1. Lima
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Capital city and economic hub
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Diverse real estate market: luxury condos, commercial buildings, and historic homes
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High rental demand and steady price appreciation
🔹 2. Arequipa
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Second-largest city with growing industrial base
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Increasing demand for residential and commercial real estate
🔹 3. Cusco
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Tourist hotspot near Machu Picchu
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Vacation homes, hotels, and rental properties popular among investors
🔹 4. Trujillo
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Coastal city with expanding urban development
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Attractive for affordable housing investments
🔹 5. Iquitos
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Amazon region city, growing due to tourism and trade
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Emerging real estate market with potential for growth
💰 Property Prices in 2025
| Location | Avg. Price (PEN/sqm) | Approx. €/sqm |
|---|---|---|
| Lima | PEN 5,000–9,000 | €1,150–€2,070 |
| Arequipa | PEN 3,500–6,500 | €800–€1,500 |
| Cusco | PEN 3,000–6,000 | €690–€1,380 |
| Trujillo | PEN 2,500–5,000 | €575–€1,150 |
| Iquitos | PEN 2,000–4,500 | €460–€1,035 |
📈 Rental Yields & ROI
| Location | Long-Term Yield | Short-Term Rental ROI |
|---|---|---|
| Lima | 5–7% | 6–9% |
| Arequipa | 6–8% | 7–10% |
| Cusco | 6–9% | 8–12% |
| Trujillo | 5–7% | 6–8% |
| Iquitos | 5–7% | 6–9% |
🛠️ Buying Process for Foreigners
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Obtain a Peruvian Tax ID (RUC or DNI for residents)
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Find property and negotiate price
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Conduct legal due diligence with a notary or lawyer
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Sign Purchase Agreement and pay deposit (usually 10%)
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Complete sale via Public Deed notarized by a notary
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Register property with the Public Registry
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Typical closing timeframe: 30–45 days
🧾 Taxes & Fees
| Tax/Cost | Rate/Details |
|---|---|
| Transfer Tax | 3% on property value |
| Notary & Registration Fees | Approx. 1–2% of transaction value |
| Annual Property Tax | Low, varies by municipality |
| Capital Gains Tax | 5%–30% depending on holding period and property type |
| Rental Income Tax | Progressive rates, up to 30% |
🛂 Residency & Visas
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Property ownership does not grant residency or citizenship
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Standard immigration procedures apply for residency
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Investment in property can support visa applications but is not sufficient alone
🏘️ Who Should Invest in Peru?
✅ Ideal for:
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Buyers attracted to emerging markets with growth potential
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Investors focused on tourism-driven rental income (Cusco, Lima)
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Lifestyle buyers interested in culture and affordable property
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Those comfortable navigating developing market dynamics
❌ Not ideal for:
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Buyers expecting quick residency through property purchase
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Investors requiring highly liquid markets or guaranteed returns
🔮 2025 Market Trends
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Growth in middle-class housing demand in urban areas
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Expansion of tourism-related real estate in Cusco and coastal cities
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Increasing infrastructure investments improving market access
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Greater interest in eco-friendly and sustainable developments
🧭 Final Thoughts
Peru’s real estate market offers opportunities for long-term growth and tourism-related investment. Foreign buyers benefit from strong ownership rights but should carefully manage due diligence and tax planning.
Working with local professionals is essential for smooth and secure transactions.
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