Peru: Guide to Buying Costs and Procedures
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Total transaction costs are low in Peru
How high are realtors’ and lawyers’ fees in Peru? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Transfer Tax (Alcabala) | 3.00% | buyer |
| Notary Fees | 0.10% - 0.25% | buyer |
| Registration Fee | 0.30% | buyer |
| Estate Agent's Fees | 3.00% - 5.00% | seller |
| Costs paid by buyer | 3.40% - 3.55% | |
| Costs paid by seller | 3.00% - 5.00% | |
| ROUNDTRIP TRANSACTION COSTS | 6.40% - 8.55% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in Peru?
Foreign residents and non-residents alike may buy Peruvian property. Investment in Peruvian real estate property does not require government approval, except if such property is close to Peru’s frontiers. Foreigners are restricted to own property near government installations and military bases.
Real estate ownership is generally absolute. It is recommended to be represented by a real estate agent during the transaction. The whole process of registering a property can be completed in around 33 days.
Transfer of real property must be made by public deed. Notary publics are obliged to report to the tax authorities all transfers they register. All deeds must be hand-written and kept in the notary’s registry.
To ensure that the title is clean, a Property Registry Certificate must be obtained from the property registry. This ascertains the property’s existence and information details, and if it is free of mortgage debt, liens, or any other encumbrance.
The Notary Public prepares and files the Sale Purchase Agreement (SPA), or “minuta”, for registration and to be converted to a public deed. It is advisable to use the option to “block” the property register for 60 days while the SPA has not yet been converted to a public deed. This can be done through a pre-emptive registration to prevent any third party filings.
Footnotes to transaction costs table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Currency:
Peru uses Peruvian Nuevo Sol. Exchange rate is at US$1=PEN3.4012 as of 22nd June 2006.
Peru - more data and information
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