Peru – Selling Property

What are the steps involved in selling property yourself in Peru?

Conducting a private property sale in Peru — without the involvement of a real estate agent — is entirely lawful and follows the same obligatory legal procedures as an agent-facilitated transaction. The process is anchored in notarisation and registration with SUNARP (Superintendencia Nacional de los Registros Públicos), Peru’s official national property registry. The following outlines the standard sequence of steps.

1. Verify your title at SUNARP. Prior to marketing your property, confirm its legal standing through SUNARP. A properly registered property will have a Partida Electrónica — an electronic title record — on which your name should appear as the registered owner, free of any outstanding debts, encumbrances, or legal disputes. If your property is not yet registered, initiate the saneamiento registral (title regularisation) process without delay.
2. Obtain a certificate of no municipal debts. Sellers are required to obtain a certificate of no municipal debts from the relevant local municipality. This document confirms that all property taxes (predial) and municipal service charges (arbitrios) have been paid in full.
3. List and market the property. Without an agent acting on your behalf, you may advertise through online property platforms, social media, or personal networks. Once you have identified a buyer and reached agreement on price, you can move forward with the legal stages below.
4. Sign an Arras (reservation agreement). After both parties agree on the price and terms, it is customary to sign an Arras — a reservation or preliminary agreement — accompanied by a deposit of typically 10–20% of the agreed purchase price. This demonstrates mutual commitment and is broadly comparable to an exchange of contracts in other legal systems.
5. Have a lawyer draft the Minuta de Compra-Venta. A central element of any Peruvian property transaction is the Minuta de Compra-Venta, a formally binding preliminary contract that sets out the essential terms of the agreement — including a precise description of the property, the agreed sale price, payment arrangements, and the obligations incumbent on each party. Although it is technically possible to prepare this document independently, retaining a qualified lawyer to do so is strongly recommended.
6. Sign the Escritura Pública (public deed) before a notary. The transaction achieves legal force for both seller and buyer upon signature of the Escritura Pública in the presence of a Peruvian notary, at which point it becomes an official public instrument.
7. Register the transfer with SUNARP. Following execution of the public deed, the notary prepares and forwards the parte notarial — an official certified copy of the deed — to SUNARP to formally record the change of ownership in the new owner’s name. Registration ordinarily takes between 7 and 15 business days once all required documents and fees have been submitted.

Throughout the entire process, the seller should retain copies of every document and ensure that any outstanding mortgage or encumbrance on the property is discharged before or simultaneously with the sale. The Peruvian tax authority, SUNAT, must also receive payment of any capital gains tax owed (see below) as part of completing the transaction.

Do most sellers in Peru use an estate agent, or is private selling common?

There is no statutory requirement to engage a licensed estate agent when selling property in Peru, and private sales do take place. That said, using an agent is the more common approach in practice, particularly in urban centres such as Lima, Miraflores, and Cusco, where agents with established buyer networks and local market expertise can meaningfully improve both the speed of a sale and the price achieved.

Peru’s real estate sector operates with limited regulatory oversight, which results in considerable variation in the quality and professionalism of agents operating in the market. While reputable practitioners do exist — many of whom specialise in serving international clients with cross-border transaction experience — fraudulent conduct and unethical behaviour are sufficiently common to make careful selection of any agent essential.

There is no mandatory national licensing body for Peruvian real estate agents comparable to, for example, the RICS in the United Kingdom or equivalent professional bodies in France or Germany. This absence of mandatory professional standards makes thorough due diligence all the more important when appointing an agent. Always request references, verify the agent’s track record, and ensure any commission arrangement is documented in writing before proceeding.

Online property portals are widely used across Peru, with platforms such as Urbania and A Dónde Vivir enabling private sellers to reach a broad audience without intermediaries. A strong preference for cash transactions characterises the Peruvian real estate market, as buyers — including foreign nationals — frequently encounter difficulties accessing local mortgage finance, while elevated interest rates make cash purchases more appealing. Sellers should be prepared to accept and properly document cash payments through formal banking channels in order to satisfy anti-money laundering requirements.

Agent commissions are negotiated directly between seller and agent and are not governed by a statutory fee schedule. Rates generally fall in the range of 3% to 5% of the sale price, though this varies by location and property type. It is essential to agree and confirm the commission rate in writing before formally instructing any agent.

How does capital gains tax work when selling property in Peru?

Peru imposes capital gains tax on property disposals, and its approach is notably simpler than the tiered or income-linked structures found in many comparable jurisdictions. Always confirm the current applicable rates with SUNAT prior to completing your sale, as rates and thresholds are subject to change.

Capital gains arising from the sale of real estate by both domiciled and non-domiciled individuals are subject to an effective income tax rate of 5%. Technically, the computation applies a rate of 6.25% to the net taxable income, which yields an effective rate of 5%. This rate is levied on the profit generated — that is, the difference between the original acquisition price and the eventual sale price — rather than on the total sale proceeds.

Capital gains realised by non-residents through the disposal of Peruvian property are taxed at this same flat 5% rate. The taxable gain is determined by deducting the invested capital — encompassing the original purchase cost and the cost of any improvements — from the gross sale price or market value of the property, although these deductions are subject to approval by the tax authorities.

A significant exemption exists in respect of primary residences. Income derived from the sale of a property that served as the seller’s main home — referred to in Peruvian law as casa habitación — falls outside the scope of income tax. A property qualifies as a casa habitación when it is used exclusively for residential purposes; it must not serve any commercial function, and an individual may only designate one property as their casa habitación at any given time.

Annual property taxes range from 0.2% to 1% of assessed value, while capital gains tax applies at 5% upon disposal, with primary residences benefiting from the exemption described above. Properties that were acquired before 1 January 2004 are also exempt from capital gains tax under a transitional provision — consult SUNAT or a local tax adviser to determine whether this rule applies in your specific circumstances.

From 1 January 2017, individuals who are not Peruvian tax residents have also been subject to the 5% rate on proceeds from property disposals. However, non-resident sellers may apply to be taxed solely on the difference between the original acquisition price and the sale price — a mechanism known as devolución del capital invertido. This requires obtaining a Recovery of Invested Capital Certificate from SUNAT before payment is received.

Unlike certain jurisdictions where the period of ownership affects the applicable tax rate, Peru’s 5% flat rate applies irrespective of how long the property has been held (as of 2025). For up-to-date information and any changes to the applicable rates, consult SUNAT’s official website or seek advice from a local tax specialist.

Are there other taxes or costs involved in selling property in Peru?

In addition to capital gains tax, both sellers and buyers bear certain costs at the point of sale. The allocation of these costs between the parties can in some cases be negotiated, but particular obligations are fixed by law. Always confirm current figures with a licensed notary or SUNAT.

Notary fees in Peru generally fall between 0.5% and 1% of the property’s sale price. On a transaction valued at US$100,000, this translates to between US$500 and US$1,000 in notary charges. These fees cover the preparation and formalisation of the sale contract, verification of all legal documentation, and confirmation that each party has the legal capacity required to complete the transaction.

The buyer bears responsibility for the Alcabala transfer tax, levied at 3%. This tax does not apply where the commercial value of the property falls below 10 UITs (S/53,500 for the year 2025), or in the case of a first-time sale within a horizontal property development (condominium) or multifamily building. As a seller, you will not be directly liable for this tax, but it is worth understanding its impact on the buyer’s total costs, as it may influence price negotiations.

Additional charges may include the Impuesto a las Transacciones Financieras (ITF), levied at 0.005% on banking operations connected with property transactions. While this is a modest levy, it underlines the importance of channelling all payments through regulated banking institutions.

Legal fees for property transactions in Lima typically range from 1% to 2% of the sale price, covering services such as title searches, contract preparation, and legal counsel. Each party is generally expected to retain their own legal representative and meet their own legal costs accordingly.

The total combined cost of taxes and fees in the first year typically amounts to between 4.5% and 6% of the property’s sale price in Peru, encompassing the 3% transfer tax, 0.5%–1% in notary fees, 0.3%–0.5% for SUNARP registration, and 1%–2% in legal fees. For current tax rates, refer to SUNAT; for registration fees, contact SUNARP directly.

What legal requirements must sellers meet in Peru?

Peru does not currently require sellers to produce energy performance certificates or structural surveys before placing a property on the market, in contrast to the mandatory pre-sale disclosure requirements that exist in many European countries. The legal obligations placed on Peruvian sellers centre principally on demonstrating clear title and transparently disclosing the property’s legal and financial position.

The seller is required to furnish a property title, a certificate of no encumbrances, and a municipal tax clearance certificate. The certificate of no encumbrances, obtained from SUNARP, confirms that the property carries no registered mortgages, liens, or legal disputes, while the municipal clearance demonstrates that all local taxes are fully paid and current.

Thorough due diligence is essential given the potential for irregular title situations to arise in the Peruvian market. This involves scrutinising the property’s registration records at the Public Registry, verifying that the physical boundaries of the property correspond to those shown in official records, and confirming that all necessary permits and approvals are in place.

Foreign sellers are subject to the same rights and obligations as Peruvian nationals when disposing of property. Under Article 71 of the Peruvian Constitution, foreigners enjoy the same treatment as Peruvian citizens with respect to property ownership, with one exception: foreigners may not, directly or indirectly, acquire or hold title to land, mines, forests, water, or energy resources situated within 50 kilometres of the country’s national borders. This restriction applies equally to acquisition, so foreign sellers who previously purchased property within a border zone should obtain specialist legal advice before proceeding.

All transactional documents must be notarised by a Peruvian Notario Público. Where the seller is resident abroad, they may conduct the sale through a duly authorised power of attorney. Sellers living outside Peru may transact through a power of attorney granted to their lawyer or another nominated representative, executed either at the Peruvian Consulate in their country of residence or before a foreign notary.

Where a property is not registered with SUNARP — commonly described as informal or imperfect possession — the transaction carries heightened risk. In such cases, additional precautions are essential, and engaging a lawyer with specific experience in property regularisation is strongly recommended. Properties lacking formal registration cannot be sold with the benefit of a mortgage, which substantially narrows the buyer pool.

How does the exchange and completion process work in Peru?

Peru’s property completion process bears a closer resemblance to civil-law systems — such as those in France, Spain, or Germany — than to common-law systems like those in the United Kingdom or Australia, where solicitors handle the majority of the process independently. In Peru, a notary occupies a central and legally indispensable role at the point of completion.

The standard transaction sequence in Peru typically follows this path: the parties agree on price; due diligence is conducted through SUNARP to verify title and check for encumbrances; an Arras is signed with a 10–20% deposit; a lawyer prepares the Minuta; the Escritura Pública is signed before a notary; the buyer settles the Alcabala transfer tax with the municipality; and finally the transfer is registered with SUNARP to formally vest ownership in the buyer.

The notary’s role is fundamental to the property transfer process in Peru — they verify the legal standing of the property, confirm the absence of outstanding debts or encumbrances, and ensure that the transaction is conducted in full compliance with Peruvian law. Notary fees are a mandatory expense and must be settled before the property deed can be executed and the transfer effected.

From the signing of the initial agreement through to the final transfer of legal ownership, the property sale process in Peru generally takes between 30 and 60 days. This timeframe may vary depending on the complexity of the transaction and how efficiently the parties involved proceed. Where unresolved title issues, missing permits, or outstanding municipal liabilities exist, the process can extend considerably.

Payment for the property is ordinarily made by bank transfer. Under Peru’s bancarización requirements, all price payments must be routed through legally recognised payment channels — including bank transfers, certified bank cheques, and deposits. Cash payments above prescribed thresholds are subject to reporting obligations designed to prevent money laundering. Sellers should ensure that funds are received through a Peruvian bank account or an authorised equivalent in order to maintain a clean and legally compliant transaction record.

Once the Escritura Pública has been signed and all fees settled, the notary dispatches the parte notarial to SUNARP. The registration process ordinarily takes between 7 and 15 business days from the point at which all required documentation and fees are submitted. The transfer of ownership is not fully finalised in law until this registration is completed.

Is property exchange or part-exchange an option in Peru?

Direct property exchange — where two parties swap ownership of their respective properties without a conventional monetary sale — is neither a widely used arrangement nor a formally regulated practice within Peru’s residential real estate market. While Peruvian civil law does not in principle prohibit such arrangements, there is no dedicated legal framework specifically governing property swaps of the kind recognised in certain other markets.

Any such arrangement would in practice be structured as two concurrent and parallel sale transactions: each property would be independently appraised, a separate Minuta de Compra-Venta would be drawn up for each, both would undergo individual notarisation and registration at SUNARP, and any difference in value between the two properties would be resolved through a cash payment. All standard taxes — including capital gains tax — would be assessed and applied to each transaction independently.

For foreign sellers, property exchange introduces a significant degree of additional complexity. Each transaction would require its own independent documentation, with separate tax obligations calculated and discharged in respect of each property. Currency reporting requirements would continue to apply to any cash element involved in settling a value differential. The practical obstacles — locating a willing counterparty, independently valuing two properties, and navigating two simultaneous legal procedures — mean that direct exchange arrangements are uncommon in practice.

If you are considering this approach, you should consult a Peruvian real estate lawyer with relevant experience in non-standard transactions, and seek specific guidance from SUNAT regarding the tax treatment of any exchange arrangement before taking any further steps.

What should foreign sellers know about repatriating sale proceeds from Peru?

Peru does not impose blanket currency controls preventing foreign nationals from transferring proceeds from a property sale out of the country, but there are important reporting obligations and practical steps that foreign sellers must follow to repatriate funds lawfully and without complication.

All property transactions must be settled through formal banking and financial channels under Peru’s bancarización rules. Payments must be made via authorised instruments such as bank transfers, certified bank cheques, deposits, and comparable mechanisms. Transactions conducted outside these channels can give rise to legal and tax complications for both the buyer and the seller.

Non-residents are subject to Peruvian tax only on income derived from Peruvian sources. Before transferring funds abroad, non-resident sellers should confirm that their capital gains tax liability has been fully discharged with SUNAT. Non-resident sellers may also need to obtain a Recovery of Invested Capital Certificate from SUNAT to claim a deduction for the original purchase cost against the sale proceeds, thereby reducing the amount of tax payable.

Peru has concluded a number of double taxation agreements (DTAs) with other countries, which may allow tax paid in Peru on a property sale gain to be credited against any liability arising in your country of residence. In cross-border transactions, it is important to consider the potential application of any double taxation treaty entered into by Peru, as these agreements frequently contain provisions specifying maximum tax rates and mechanisms for eliminating double taxation. You should check with your home country’s tax authority — and with a specialist international tax adviser — to determine whether a DTA applies to your situation and how it affects your overall tax position.

Once tax obligations have been met and sale proceeds are held in a Peruvian bank account, international wire transfers are generally straightforward, although your bank may request documentation establishing the source of the funds — namely, evidence of the property sale. Larger transfers may trigger additional reporting requirements under Peru’s anti-money laundering regulations. Working with both a Peruvian tax adviser and a currency transfer specialist is advisable to plan the repatriation efficiently and in full compliance with all applicable rules. For official guidance, consult SUNAT and the Banco Central de Reserva del Perú (BCRP).

Frequently asked questions: selling property in Peru

How long does it typically take to sell a property in Peru from listing to completion?

The legal completion process — from execution of the initial reservation agreement to final registration with SUNARP — typically spans between 30 and 60 days for a property with a clean, registered title. The time required to market the property and secure a buyer can add further weeks or months, depending on location and prevailing market conditions. Properties affected by unregistered titles or unresolved legal issues can take significantly longer — in some cases many months — before the sale can proceed.

Can I sell my property in Peru remotely without being present in the country?

Physical presence in Peru is not required at every stage of the process, as a notarised Power of Attorney enables a designated representative to sign documents on the seller’s behalf. If you are based abroad, you may sell property in Peru through a power of attorney granted to your lawyer or another authorised representative, executed either at the Peruvian Consulate in your country of residence or before a foreign notary. Where the power of attorney is executed outside Peru, it will need to be apostilled before it can be used.

What happens if the buyer pulls out of the sale after signing the Arras?

The Arras agreement offers the seller a degree of protection. If the buyer withdraws after executing the agreement and paying the deposit, the seller is generally entitled to retain the deposit as compensation for the failed transaction. Where it is the seller who withdraws, they may be required to repay the buyer double the amount of the deposit originally received. The precise consequences depend on the specific terms of the Arras agreement, making it important to have a lawyer review the document carefully before it is signed.

Do I need a Peruvian tax identification number (RUC) to sell property in Peru?

Yes. A Peruvian tax identification number — known as a RUC — is a prerequisite for property transactions. As a seller, you will need a RUC to declare and remit capital gains tax to SUNAT. Foreign nationals may obtain a RUC from SUNAT offices in Peru. The application process typically requires a valid passport and evidence of address. Your local lawyer can assist with obtaining a RUC if you do not already hold one.

Is there any inheritance or gift tax to consider if I transfer property rather than sell it?

Peru does not levy a gift or inheritance tax. Where ownership of a property is transferred by way of gift or succession, standard Peruvian income tax rules may nonetheless apply depending on the structure of the transfer, so specific legal advice should be sought in advance. For conventional sales, capital gains tax at 5% applies in the usual manner.

Are there any restrictions on selling property in border zones?

Under the Peruvian Constitution, foreign nationals may not, directly or indirectly, acquire or hold title to land situated within 50 kilometres of the country’s national borders. If you originally purchased property in a restricted border zone under a special permit or other prior arrangement, you should obtain specialist legal advice before attempting to sell, as transfers of title in these areas are subject to heightened regulatory scrutiny.

What documents does a seller need to prepare for the sale?

The seller is required to provide a property title, a certificate of no encumbrances from SUNARP, and a municipal tax clearance certificate. You will additionally need your national identity document or passport, your Peruvian RUC, any prior purchase deeds, documentation supporting any improvements made to the property (to substantiate cost deductions for capital gains purposes), and evidence that all property taxes and service fees are fully paid and up to date. Your notary and lawyer will supply a comprehensive checklist tailored to your specific property and circumstances.

Will I owe tax in my home country as well as in Peru on the sale of my property?

The answer depends on your country of residence and whether it has a double taxation agreement in force with Peru. Peru’s double taxation treaties with other countries typically include provisions addressing maximum applicable tax rates and mechanisms for the elimination of double taxation. In broad terms, tax paid in Peru on your capital gain may be creditable against any liability arising in your home country, though the specific rules differ considerably between jurisdictions. You should consult a tax adviser who is conversant with both Peruvian tax law and the rules applicable in your country of residence before completing your sale.