Peru – Property Letting

How does the property letting process work in Peru?

As of early 2026, foreign nationals are fully entitled to purchase and rent out residential property in Peru; the country’s constitution affords overseas buyers essentially the same ownership rights as Peruvian citizens. The letting process itself will feel broadly familiar — advertising, screening prospective tenants, and entering into a written agreement — yet the governing legal framework is Peru’s Civil Code rather than a standalone residential tenancies statute, which makes the precise content of your contract particularly significant.

Landlords typically market properties through online portals such as Urbania, Adondevivir, and Lamudi, as well as via social media channels and local letting agencies. Tenant screening is relatively informal by international standards: landlords routinely ask for proof of employment, recent payslips, and personal references, but there is no centralised national tenancy register or obligatory pre-letting checks comparable to the credit reference agency systems used in many other countries.

Peruvian law sets a maximum duration of 10 years for all lease contracts. Any agreement specifying a longer period will be treated as if it were capped at the legal maximum of 10 years. The most widely used lease length for residential lettings in Peru is 12 months, though 6-month agreements are common in furnished or expat-oriented markets.

Standard provisions included in Peruvian residential leases typically cover: the duration of the tenancy (which may not exceed 10 years); rent escalation — it is customary to incorporate an annual increase of approximately 3%; subletting and sale rights — only the property owner may sell the premises, and the tenant must obtain the landlord’s express consent before subletting; and insurance clauses addressing destruction of or damage to the property.

One notable distinction from many common-law jurisdictions is that informal or verbal arrangements carry no special legal standing in Peru for residential lettings. A properly drafted, signed written contract is the accepted standard and the indispensable foundation for enforcing your rights — particularly if you subsequently need to invoke the fast-track eviction procedure described later in this guide.

Where a lease has expired but both parties continue conducting themselves as though it remains in force, this does not constitute a renewal under Peruvian law. Instead, the arrangement is treated as a continuing contract of indefinite duration on the same terms as the original, until the landlord formally requests the return of the property.

What types of rental arrangements are available in Peru?

Peru’s rental market divides broadly into long-term residential leases, short-term furnished lets, and holiday or vacation rentals. Each carries a distinct risk profile and regulatory footprint, although no single national licensing regime governs all categories.

Short-term rentals in Peru are characterised as accommodation offered for relatively brief periods — typically anywhere from a few days to a few months — catering primarily to tourists, business visitors, and temporary residents. This category encompasses apartments, houses, rooms within shared homes, and more distinctive options such as eco-lodges or traditionally styled Peruvian properties.

There is no national regulation stipulating a maximum permitted length of stay for short-term rentals. The duration is ordinarily determined by the agreement reached between the property owner and the guest, and may vary depending on the property’s location and the owner’s preferences.

Properties within condominiums or governed by Homeowners Associations may be subject to bylaws that restrict or regulate short-term letting, often requiring prior approval. Certain municipalities — particularly in tourist destinations such as Lima and Cusco — may enforce specific rules or licensing requirements for short-term rentals. Landlords considering holiday letting should confirm the position with their local municipality before proceeding.

A regulation effective from 24 October 2024 obliges accommodation providers, including short-term rental hosts, to submit foreign guests’ details — including names, check-in and check-out dates, and identification numbers — through a designated government platform. Immigration authorities are empowered to audit these records, and penalties apply for non-compliance. This obligation extends to all landlords, whether resident in Peru or not, who accommodate foreign nationals.

As of early 2026, long-term letting generally delivers more predictable returns for passive investors in Lima’s established neighbourhoods, whereas short-term rentals can outperform during peak tourist seasons in destinations such as Cusco, provided operations are managed professionally. The average annual occupancy rate for short-term rentals in Lima stands at approximately 51%, while Cusco averages around 46% and Arequipa closer to 40%.

What rental income can landlords expect in Peru, and how are rates set?

Peru operates an entirely free-market rental system: there is no national rent control, no designated rent pressure zone legislation, and no statutory indexation mechanism. Landlords and tenants negotiate rent levels and any subsequent increases directly, giving owners greater pricing flexibility than exists in many European or Latin American markets.

Rent adjustments during a tenancy are entirely unregulated, meaning that landlords and tenants agree on changes between themselves. That said, it is prudent to specify the review mechanism — including timing, percentage, and any currency indexing — clearly within the lease. This was confirmed upon reviewing Decreto Legislativo 1177 and its implementing regulation DS 017-2015-VIVIENDA in the official El Peruano gazette, along with MINJUS guidance on lease enforcement. No statutory rent ceilings exist under current legislation.

As of early 2026, realistic net rental yields for a typical Lima apartment held by a foreign investor fall in the range of approximately 3.5% to 4.5% after all recurring costs are accounted for. Most landlords in Peru achieve net yields of between 3% and 5%, with the lower end reflecting overseas owners paying full management fees and the upper end representing hands-on local investors.

Short-term rental occupancy in Cusco averages 46% with a nightly rate of around USD 35 — considerably below Lima’s USD 59 — meaning that seasonal tourism fluctuations hit harder outside the capital. Lima districts such as Miraflores, San Isidro, and Surco command the highest long-term rents, while peripheral districts and regional cities are significantly more affordable. The Banco Central de Reserva del Perú (BCRP), which tracks rental price data by district on a quarterly basis, is a useful resource for current market benchmarks.

Where the total annual rent is below 6% of the property’s official municipal valuation (autoavalúo), legislation requires the declaration of a presumed minimum income of 6%. This means SUNAT can attribute a minimum taxable rental income even where the contractual rent is lower, so landlords should set rents at or above market level and declare them accurately.

Do landlords need to provide a furnished or unfurnished property in Peru?

Long-term residential lettings in Peru typically involve unfurnished properties — often without kitchen appliances — with tenants generally expected to meet their own utility costs. There is no legal obligation for landlords to supply furnishings or white goods for a standard long-term residential tenancy. Unfurnished lets are the norm for agreements aimed at local tenants or established expatriates.

Furnished lets are prevalent in the short-term and expat-oriented segment of the market — particularly in Lima neighbourhoods such as Miraflores and San Isidro — and ordinarily attract a premium rent. Peruvian housing law prescribes no formal furnishing standards, and there is no official classification system distinguishing furnished from unfurnished properties for licensing purposes.

Where a property is rented furnished, the rental income may become subject to Value Added Tax (IGV) at a rate of 18%, depending on the circumstances. It is advisable to consult a tax professional to establish whether IGV applies to your particular rental activities. This is an important distinction: unfurnished residential lettings by individual landlords typically fall outside the scope of IGV, whereas furnished or serviced lets that cross the threshold for business activity may attract it. Seek specialist tax advice before settling on a letting model.

Do you need a licence or registration to let a property in Peru?

Peru does not operate a national landlord licensing scheme comparable to those found in parts of the United Kingdom or Ireland. There is no requirement to register with a central housing authority before letting a long-term residential property. However, several tax and administrative registration steps are effectively mandatory in practice.

You are not required to be a Peruvian resident in order to let out property in Peru, and many foreign landlords manage their properties remotely through local managers and notaries. You will, however, need a tax identification number (RUC) from SUNAT in order to legally declare and pay rental income tax — typically 5% of gross rent for individuals under the first-category income rules.

While no specific national permit exists for short-term rentals, local authorities may impose additional requirements. Hosts are encouraged to consult local authorities or professional advisers to understand any restrictions, permits, or obligations applicable in their area. Municipal requirements differ from place to place and are subject to change, so verifying the position with the relevant municipalidad before commencing a short-term rental operation is strongly recommended.

Tenants must obtain the landlord’s explicit consent before subletting, as both lease agreements and Peruvian law generally prohibit subletting without it. Properties within condominiums or governed by Homeowners Associations may be subject to bylaws that restrict or regulate short-term rentals, often requiring prior approval from the relevant body.

How do you obtain a landlord licence or register as a landlord in Peru?

Although no formal landlord licence exists, there is a well-defined set of registration and administrative steps that every landlord must complete before legally letting property. The process below covers the essential compliance requirements for both resident and non-resident landlords:

1. Obtain a RUC (Registro Único de Contribuyentes) from SUNAT. This is Peru’s tax identification number, required in order to declare rental income. Foreign nationals who are not resident in Peru can still obtain a RUC; the process involves submitting your passport and completing an application via the SUNAT online portal or attending a SUNAT office in person. As of 2025, there is no fee for RUC registration, though requirements should be confirmed directly with SUNAT as procedures may change.
2. Draft and sign the tenancy agreement in writing. The contract must clearly state the rent, tenancy term, deposit, permitted use, and all material clauses. For residential lettings, it is advisable for both parties to have the contract reviewed by a notary.
3. Complete and notarise the FUA (Formulario Único de Arrendamiento) if you wish to benefit from the fast-track “Desalojo Express” eviction procedure. Both parties must complete the FUA — Formulario Único de Arrendamiento de inmueble destinado a vivienda — which must then be certified by a notary alongside the lease contract. Notary fees vary but are generally modest; confirm current costs with a local notary.
4. Register foreign tenants with Migraciones. Since December 2024, landlords in Peru — whether resident or not — must register foreign tenants’ identification documents via the Migraciones platform or face penalties. This obligation applies regardless of your own residency status.
5. Declare rental income monthly to SUNAT. Landlords must declare and remit rental income tax on a monthly basis by submitting Form N° 1683 through the SUNAT Virtual platform.
6. Check municipal requirements for short-term or holiday lets. If you intend to operate a short-term rental, contact the local municipalidad to establish whether a specific operating licence or notification is required for your property type and location. Tax registration fees are generally minimal; however, if the rental activity is classified as a business, there may be additional IGV registration and compliance costs. Municipal fees differ according to local regulations and should be confirmed with the relevant authority.

What are the rules around deposits in Peru?

Security deposits in Peru are customarily set at one to two months’ rent, with no statutory maximum established by law. Unlike the formal tenancy deposit protection schemes in operation in countries such as the United Kingdom and Ireland — where deposits must be lodged with a government-authorised scheme within a specified timeframe — Peru has no equivalent centralised mechanism. Deposits are retained directly by the landlord, with no requirement to involve a third-party custodian.

Because no mandated scheme exists, the terms governing the deposit — including the conditions under which deductions may be made and the timeframe for its return — must be spelled out clearly within the tenancy agreement itself. Landlords are strongly advised to conduct a thorough written inventory at the commencement and conclusion of each tenancy, supported by photographs, in order to provide clear evidence in the event of a dispute.

Permissible deductions commonly include unpaid rent, damage beyond fair wear and tear, and outstanding utility bills where the tenant bears responsibility for these. The deposit return process is governed by what has been agreed in the contract rather than by any statutory return deadline. Disputes over deposit deductions may be resolved through the courts or, where provided for in the lease, through arbitration.

For the most up-to-date official guidance on deposit arrangements, consult the Ministerio de Justicia y Derechos Humanos (MINJUS), which publishes guidance on civil tenancy obligations, and seek advice from a local property lawyer before executing any agreement.

Who is responsible for maintenance and repairs in Peru?

Under the Civil Code, the landlord’s primary obligation is to grant and sustain the tenant’s quiet enjoyment of the leased premises as stipulated in the contract. In broad terms, this means the landlord bears responsibility for structural repairs and for ensuring the property remains habitable and fit for the agreed purpose throughout the tenancy.

The tenant is entitled to withhold rent payments temporarily as a contractual remedy where the landlord has breached the obligation to maintain the tenant’s use and enjoyment of the premises. This is a meaningful protection for tenants: where a landlord neglects essential repairs, the tenant may have grounds to withhold rent until the matter is addressed. Landlords should therefore respond promptly to maintenance requests and keep detailed records of all relevant communications.

Landlords are generally obliged to reimburse tenants for necessary and beneficial improvements carried out during the tenancy, provided prior approval was obtained. Necessary improvements are those that prevent deterioration or damage to the property, while beneficial improvements are those that enhance its value. A tenant’s entitlement to claim reimbursement for such improvements lapses two months after vacating the property. It is common, however, for lease contracts to include a clause stating that any improvements remain with the property without any obligation on the landlord to compensate the tenant. Landlords are well advised to include such a provision in their lease.

Day-to-day maintenance obligations — such as keeping fittings in working order and attending to minor repairs — are typically assigned to tenants by the terms of the contract. There are no statutory minimum habitability standards directly equivalent to the UK’s Homes (Fitness for Human Habitation) Act, but the Civil Code’s requirement to maintain the tenant’s enjoyment of the premises creates a comparable practical obligation on landlords where significant defects arise.

How are letting agents used in Peru, and what do they charge?

Letting agents and property management companies occupy an important position in the Peruvian rental market, particularly for foreign landlords managing properties from abroad. Their services typically encompass advertising, tenant sourcing and vetting, lease preparation, rent collection, maintenance coordination, and — in some cases — accounting and SUNAT compliance support.

There is no statutory regulation of letting agent fees in Peru comparable to the UK’s Tenant Fees Act 2019, which prohibits landlords from passing certain costs to tenants. In Peru, fee structures are negotiated commercially between the parties, and there is no legal restriction on whether the landlord, the tenant, or both are responsible for paying the agent — though for long-term lettings the landlord typically bears the finder’s fee.

Lima letting agents commonly charge a finder’s fee equivalent to one month’s rent upon successfully placing a new tenant, as of 2025. Ongoing property management services attract monthly fees that typically fall between approximately 8% and 12% of the monthly rent, though rates differ by agent, property type, and the scope of services provided. Always request a full written breakdown of all fees before engaging an agent, and verify current market rates, as these figures may shift over time. The relevant consumer protection body is INDECOPI (Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual).

Remote management is entirely viable in Peru, especially in Lima, where property management firms, bilingual notaries, and digital banking facilities are readily accessible to support overseas landlords. For non-resident landlords in particular, appointing a reputable local property manager is not merely a convenience — it is often essential for meeting ongoing compliance obligations, including the Migraciones foreign guest registration requirement.

What taxes apply to rental income in Peru?

Peru’s tax authority is SUNAT. How rental income is taxed depends on whether the landlord is considered domiciled (resident) or non-domiciled (non-resident) for tax purposes. Tax residency is determined not by citizenship but by physical presence: spending more than 183 days in Peru within any 12-month period means you will be treated as a tax resident from the following calendar year.

Resident (domiciled) landlords: All income derived from lease contracts is classified as First Category income (renta de primera categoría) in Peru. The effective tax rate is 5%. Landlords are required to declare and pay this tax each month by submitting Form N° 1683 through the SUNAT Virtual platform. Resident landlords may benefit from certain deductions and standard exemptions applicable to their overall income tax position; consult SUNAT or a tax adviser for current thresholds.

Non-resident (non-domiciled) landlords: Rental income received by non-residents is subject to a flat rate of 30%. Non-residents are not permitted to claim any deductions. This represents a considerably heavier burden than the 5% rate available to residents, and there are no allowable deductions for expenses such as mortgage interest, agent fees, or depreciation — unlike the net income systems operating in many other countries. As of 2025, the UIT (Unidad Impositiva Tributaria, the official tax unit) stands at PEN 5,150, rising to PEN 5,500 for 2026, per PwC Tax Summaries.

Where the total annual rent falls below 6% of the property’s official municipal valuation (autoavalúo), legislation requires the declaration of a presumed minimum income of 6%. This anti-avoidance provision means SUNAT can attribute a minimum taxable rental income regardless of the actual rent received.

Real estate tax (Impuesto Predial): Real estate tax is levied annually on the cadastral value of the property, as assessed by the government, at progressive rates. The property owner is liable for this tax each year. It is a cost borne by the owner, not the tenant.

VAT (IGV): Rental agreements are subject to 18% VAT on the consideration received where the landlord is a local entity or individual operating as a business. VAT is payable by the landlord to the tax authority but is economically passed on to the tenant. Individual landlords letting a single residential property without a registered business typically fall outside the scope of IGV, but those operating at scale or letting furnished properties should take professional advice.

Peru has concluded double taxation treaties with a number of countries including Bolivia, Brazil, Canada, Chile, Colombia, Ecuador, Japan, Korea, Mexico, Portugal, and Switzerland. If your home country is not among those with a treaty in force, you should seek specialist advice to understand your full tax position. Always consult SUNAT and a qualified local tax adviser for current rules, particularly given the complexities that arise for foreign nationals.

What are the rules around ending a tenancy or evicting a tenant in Peru?

Peruvian law affords tenants strong protections, which can make recovering possession from long-term occupants challenging for landlords. Fixed-term leases — which may run for up to 10 years — cannot ordinarily be terminated before their expiry without a tenant default such as non-payment. For indefinite tenancies, landlords must give at least 30 days’ notice before seeking to recover the property.

Either party wishing to bring a lease to an end before the expiry of its agreed term must give at least 30 days’ notice requesting the return of the property. Neither party will incur penalties for doing so unless the contract provides otherwise — which is common in situations where a tenant vacates early.

Peruvian law identifies specific grounds on which eviction may be sought, including expiry of the contractual term, non-payment of rent, unauthorised subletting, and use of the property for purposes other than those agreed. Landlords must follow the prescribed legal procedures to evict tenants, thereby safeguarding the rights of both parties.

The “Desalojo Express” (fast-track eviction): A streamlined eviction regime was introduced by Legislative Decree N° 1177. Under this procedure, the landlord may seek to recover the property through a Unique Eviction Procedure before a Literate Justice of the Peace. Where the tenant fails to comply with a court order, eviction can be effected within three business days. Crucially, Peru’s Desalojo Express process is only available if the lease includes a specific notarised clause — making careful contract drafting more consequential here than in most jurisdictions. Without this clause, landlords must resort to the standard judicial route, which can take several months to conclude.

Standard eviction proceedings in the Peruvian courts can indeed drag on for months. This makes completing and notarising the FUA form at the time of signing one of the most important practical steps a landlord can take to protect their position, particularly when dealing with tenants they do not know well.

What should expat landlords know about managing property remotely in Peru?

Peruvian residency is not a prerequisite for renting out property in Peru, and many foreign landlords operate their lettings entirely from abroad through local managers and notaries. That said, remote letting brings specific compliance obligations that require careful attention, particularly in light of changes introduced at the end of 2024.

Foreign guest registration: Since December 2024, all landlords hosting foreign nationals in Peru must register those tenants’ identity documents via the Migraciones platform or face penalties. A local property manager can fulfil this obligation on your behalf, but ultimate responsibility remains with the landlord.

Power of attorney: Non-resident landlords who are unable to be present in Peru to execute contracts, oversee maintenance, or handle SUNAT filings should appoint a trusted representative by means of a formal power of attorney (poder notarial). This document must be notarised in Peru — or notarised and apostilled overseas — in order to be legally effective.

Tax compliance: A RUC from SUNAT is required to legally declare and pay rental income tax. Non-resident landlords are liable at the flat rate of 30% with no deductions permitted, as described in the tax section above. A local accountant or tax adviser can manage your monthly SUNAT filings on your behalf.

Banking: A Peruvian bank account is not legally required, but is strongly recommended as it simplifies rent collection and utility payments, and generates a clear paper trail for tax purposes. Peru’s banking regulator (SBS) has broadened the range of acceptable identification documents for foreign nationals opening basic accounts, making it more straightforward than previously to receive rent locally as of 2026.

Budget realistically: A remote landlord in Lima should expect roughly 30% to 45% of gross rent to be absorbed by management fees, HOA charges, vacancy periods, and the 5% rental income tax. Foreign landlords subject to the 30% non-resident rate face an even heavier burden, so rigorous financial modelling before committing to a letting strategy is essential.

There are no restrictions on repatriating rental income earned in Peru, and the country does not impose capital controls on ordinary rental profits. Currency conversion costs and international transfer fees should nonetheless be factored into yield calculations. Consult the Superintendencia de Banca, Seguros y AFP (SBS) for current banking regulations and the SUNAT website for the tax rules applicable to non-residents.

Frequently asked questions

Can a non-resident own and let property in Peru?

As of early 2026, foreign nationals are fully entitled to purchase and rent out residential property in Peru, with the country’s constitution granting overseas buyers essentially the same ownership rights as Peruvian citizens. The sole restriction is that foreigners may not acquire real estate within 50 kilometres of national borders unless the Council of Ministers has expressly declared the purchase a matter of public necessity.

Do I need a local agent to let my property in Peru?

There is no legal requirement to engage a letting agent. However, for non-resident landlords, instructing a local property manager is strongly advisable in practice, given the need to handle SUNAT filings, the Migraciones foreign guest registration, maintenance coordination, and contract notarisation. Remote management is entirely feasible in Peru, especially in Lima, where property management companies, bilingual notaries, and digital banking facilities are widely available to support overseas landlords.

Is there rent control in Peru?

Rent adjustments during a tenancy are entirely unregulated in Peru, meaning landlords and tenants agree on any changes directly between themselves. No statutory rent ceilings exist in current legislation. Landlords should nonetheless include a clear rent review clause in the lease to avoid any ambiguity at renewal time.

How much tax do I pay on rental income in Peru as a non-resident?

Rental income received by non-residents is subject to a flat rate of 30%, and no deductions are permitted. Resident (domiciled) landlords pay a considerably lower effective rate of 5% on gross First Category income, as of 2025. Always consult SUNAT and a local tax adviser for current rates.

What is the “Desalojo Express” and how do I qualify for it?

The Desalojo Express is a fast-track eviction procedure introduced under Legislative Decree N° 1177 that enables landlords to regain possession in as little as three business days following a court order in cases of non-payment or lease expiry. It is only available where the lease incorporates a specific notarised clause — making precise contract drafting more important here than in most jurisdictions. Both parties must complete the FUA (Formulario Único de Arrendamiento) form, which must be certified by a notary alongside the lease contract.

Is there a tenancy deposit protection scheme in Peru?

No. Unlike the UK, Ireland, and certain other countries, Peru has no government-backed tenancy deposit protection scheme. Security deposits are typically set at one to two months’ rent, with no statutory cap. Deposits are held directly by the landlord, and the conditions for deductions and the timeline for return must be clearly set out in the lease agreement. A detailed written inventory should be conducted at the start and end of every tenancy.

Do I need to register foreign tenants with Peruvian immigration authorities?

Yes. A regulation effective from 24 October 2024 requires accommodation providers — including short-term rental hosts — to submit foreign guests’ details (names, check-in and check-out dates, and identification numbers) via a designated government platform. Immigration authorities may audit these records, and fines apply for non-compliance. This obligation covers both long-term and short-term lettings. Registration is carried out through the Superintendencia Nacional de Migraciones online platform.

Are short-term rentals like Airbnb legal in Peru?

Yes, short-term rentals — known as “alquileres temporales” — are legal in Peru. Tenants must, however, obtain the landlord’s explicit permission before subletting, as both lease agreements and Peruvian law generally prohibit subletting without consent. While no specific national permit is required for short-term rentals, local authorities may impose additional requirements. Condominium HOA rules may also restrict short-term letting, so it is important to review building regulations and verify local municipal requirements before listing a property on any short-term rental platform.