Cost of Living in Arequipa for Expats: A Detailed Monthly Budget Breakdown for 2024

As a licensed Peruvian real estate broker specializing in Arequipa, I frequently guide foreign investors and expats through the practicalities of establishing a life in our magnificent "White City." Understanding the cost of living is paramount to a successful transition, ensuring both financial stability and peace of mind. This comprehensive guide provides a detailed monthly budget breakdown for expats in Arequipa for 2024, grounded in current market realities and local regulatory context.

Arequipa offers a significantly lower cost of living compared to major North American or European cities, allowing for a high quality of life, often with a reduced budget. However, navigating local prices, understanding legal obligations, and setting up services requires careful planning and due diligence.

Currency & Conversion Rate

All figures will be presented in Peruvian Soles (PEN/S/) and converted to approximate United States Dollars (USD) for clarity. Please note that exchange rates fluctuate. For the purpose of this article, we will use an approximate rate of S/ 3.75 to 1 USD.

Step-by-Step Monthly Budget Breakdown for Expats

Below is a detailed look at typical monthly expenses. These figures are estimates and can vary based on individual lifestyle choices.

1. Housing (Rent & Utilities)

Housing will likely be your largest expense. Arequipa offers diverse rental options, from modern apartments in upscale neighborhoods to colonial homes in the historic center.

Rental Costs (Monthly):

Unfurnished Apartment (1-2 bedrooms):
- Outside City Center/Good Neighborhoods (e.g., Yanahuara, Cayma, La Campiña): S/ 1,500 – S/ 2,500 (approx. $400 - $670 USD). These areas offer tranquility, green spaces, and good security.
- City Center/Cercado (Modern Building): S/ 1,800 – S/ 3,000 (approx. $480 - $800 USD). Proximity to amenities, but can be noisier.
Furnished Apartment (1-2 bedrooms): Expect a 20-40% increase over unfurnished rates, typically S/ 2,000 – S/ 4,000 (approx. $530 - $1,070 USD), depending on the quality of furnishings and location.
Larger Homes (3+ bedrooms): S/ 3,000 – S/ 6,000+ (approx. $800 - $1,600+ USD) in prime residential areas like Yanahuara or Cayma.

Safety Check & Legal Warning: Always secure a formal rental contract (Contrato de Arrendamiento) written in Spanish, preferably reviewed by a local attorney. It should detail the rent, duration, conditions for termination, and security deposit (garantía), which is typically equivalent to 1-2 months' rent. Ensure the contract is legalized by a notary public (legalización de firmas) to provide legal standing and facilitate future administrative processes (e.g., residency applications). Verbal agreements are extremely risky and offer little legal protection.

Utilities (Monthly):

Electricity (Seal - Servicio de Electricidad de Arequipa): S/ 80 – S/ 250 (approx. $21 - $67 USD). Varies significantly with usage, especially if using electric heaters or air conditioning (less common in Arequipa's mild climate).
Water (Sedapar): S/ 30 – S/ 70 (approx. $8 - $19 USD).
Gas (Balón de Gas): S/ 45 – S/ 60 (approx. $12 - $16 USD) for a 10kg cylinder, which typically lasts 1-2 months for cooking. Piped natural gas is available in some newer buildings, supplied by Quavii in Arequipa, which is generally cheaper and more convenient.
Internet & Cable TV (Movistar, Claro, Win): S/ 100 – S/ 250 (approx. $27 - $67 USD) for high-speed fiber optic internet (50-300 Mbps) and basic cable package.

2. Food & Groceries

Arequipa offers an incredible culinary scene and affordable fresh produce.

Groceries (Monthly):

Basic (Cooking at home): S/ 800 – S/ 1,500 (approx. $215 - $400 USD). This budget allows for a good mix of fresh produce from bustling local markets like the Mercado San Camilo or Mercado Mayorista and staples from supermarkets (Wong, Metro, Plaza Vea). Local markets consistently offer significantly better prices and fresher produce.
Mid-range (Including some imported goods): S/ 1,500 – S/ 2,500 (approx. $400 - $670 USD).

Dining Out (Monthly):

Economical (Daily Menu – "Menú del Día"): S/ 12 – S/ 25 (approx. $3 - $7 USD) per person for a multi-course lunch at local restaurants, often including a soup, main dish, and drink.
Mid-range Restaurant: S/ 50 – S/ 120 (approx. $13 - $32 USD) per person for dinner with drinks.
High-end Restaurant: S/ 150 – S/ 300+ (approx. $40 - $80+ USD) per person.
Coffee/Snack: S/ 10 – S/ 25 (approx. $3 - $7 USD).
Assuming 2-3 economical meals per week, 1-2 mid-range dinners, and occasional coffee: S/ 400 – S/ 1,000 (approx. $107 - $267 USD).

3. Transportation

Arequipa’s public transport system is improving, and taxis are widely available.

Public Transport (Bus/Combi):

S/ 1.00 – S/ 2.50 (approx. $0.27 - $0.67 USD) per ride. Monthly passes are not common, as fares are typically paid per trip. Most expats use a mix of public transport and taxis.

Taxis/Ride-sharing (Uber, InDriver, local apps):

S/ 8 – S/ 25 (approx. $2 - $7 USD) for most intra-city trips. Rates can surge during peak hours or bad weather. Always confirm the fare with the driver before starting the trip if not using a ride-sharing app.

Estimated Monthly Cost: S/ 150 – S/ 400 (approx. $40 - $107 USD) depending on frequency.

Owning a Car (If applicable):

Fuel (Gasoline 95 Octane): S/ 19 – S/ 22 (approx. $5.00 - $5.80 USD) per gallon.
Parking: S/ 3 – S/ 8 (approx. $0.80 - $2.10 USD) per hour in paid lots.
SOAT (Mandatory Insurance): Approx. S/ 500 – S/ 700 (approx. $133 - $187 USD) annually.
Technical Inspection (Revisión Técnica): Approx. S/ 100 (approx. $27 USD) annually.
Monthly Cost (fuel & occasional parking): S/ 300 – S/ 800+ (approx. $80 - $215+ USD).

4. Healthcare

While Peru has a public healthcare system (MINSA), many expats opt for private clinics and health insurance for higher standards and shorter wait times.

Private Consultation (Specialist):

S/ 80 – S/ 200 (approx. $21 - $53 USD).

Basic Private Clinic Visit/GP:

S/ 60 – S/ 120 (approx. $16 - $32 USD).

Dental Cleaning:

S/ 100 – S/ 200 (approx. $27 - $53 USD).

Private Health Insurance (Local/International):

S/ 300 – S/ 1,000+ (approx. $80 - $267+ USD) per month, depending on age, coverage, and provider. Many expats maintain international plans or opt for robust local plans from reputable providers like Rimac Seguros, Pacífico Seguros, or Mapfre Perú.

Estimated Monthly Cost (without major issues, with insurance): S/ 350 – S/ 1,200 (approx. $93 - $320 USD).

5. Entertainment & Lifestyle

Arequipa offers a vibrant cultural scene, outdoor activities, and plenty of social opportunities.

Gym Membership:

S/ 80 – S/ 200 (approx. $21 - $53 USD) per month.

Cinema Ticket:

S/ 20 – S/ 35 (approx. $5 - $9 USD).

Cultural Events/Museums:

S/ 10 – S/ 50 (approx. $3 - $13 USD) per entry.

Bar/Pub (Drinks):

S/ 15 – S/ 30 (approx. $4 - $8 USD) per drink.

Haircut:

S/ 25 – S/ 60 (approx. $7 - $16 USD).

Estimated Monthly Cost (moderate social life): S/ 300 – S/ 800 (approx. $80 - $215 USD).

6. Miscellaneous & Contingency

Always factor in unexpected costs and administrative fees.

Visa/Residency Costs:

Initial processing fees for a Carné de Extranjería (residency permit) can be significant, often totaling over S/ 1,000 for various administrative fees and annual renewals. While not a monthly cost, it's a critical initial and recurring investment.

Clothing/Personal Care:

S/ 100 – S/ 300 (approx. $27 - $80 USD).

Education (Language Lessons/Other):

S/ 200 – S/ 500 (approx. $53 - $133 USD).

Legal Fees (Ongoing advice, contract renewals):

Varies greatly. Budget S/ 100 – S/ 200 (approx. $27 - $53 USD) for occasional consultation or administrative support, especially for property-related matters.

Contingency Fund:

Always recommended to have an extra 10-15% of your budget for emergencies or unexpected expenses.

Estimated Monthly Cost: S/ 400 – S/ 1,000 (approx. $107 - $267 USD).

Sample Monthly Budget Summary (Expat Living Comfortably)

Category	Low Estimate (PEN)	High Estimate (PEN)	Low Estimate (USD)	High Estimate (USD)
Housing (Rent 1-2 BR)	S/ 1,800	S/ 3,500	$480	$930
Utilities (Elec, Water, Gas, Internet)	S/ 250	S/ 600	$67	$160
Groceries	S/ 800	S/ 1,800	$215	$480
Dining Out	S/ 400	S/ 1,000	$107	$267
Transportation (Public/Taxi)	S/ 150	S/ 400	$40	$107
Healthcare (Insurance + minor costs)	S/ 350	S/ 1,200	$93	$320
Entertainment & Lifestyle	S/ 300	S/ 800	$80	$215
Miscellaneous & Contingency	S/ 400	S/ 1,000	$107	$267
TOTAL MONTHLY ESTIMATE	S/ 4,450	S/ 10,300	$1,189	$2,746

Local Context & Important Warnings

Arbitrios Municipales & Impuesto Predial: For renters, ensure your rental agreement clearly states whether arbitrios municipales (municipal taxes for public services like trash collection, parks, street lighting, etc.) are included in the rent or if they are a separate charge. These are typically paid quarterly or annually. For property owners, arbitrios and impuesto predial (property tax) are annual obligations and are calculated based on the property's cadastral value.
Notary Public & SUNARP: Any significant legal transaction, from formalizing rental contracts to property purchase agreements (minuta, escritura pública), must be processed and formalized through a Notario Público. Their fees are regulated but vary. For property ownership, registration with S.U.N.A.R.P. (National Superintendency of Public Registries) is the ultimate proof of ownership and provides critical legal protection against third-party claims.
Historic Property Regulations: If considering living in, renting, or investing in the Historic Center of Arequipa (a UNESCO World Heritage site), be acutely aware of strict preservation rules. Renovations, changes to facades, or even specific paint colors require municipal and cultural ministry approval, which can add significant time and cost. Always consult with a specialized architect and legal counsel experienced in this unique regulatory environment.
Security Deposits (Garantía): This is standard practice in Peru. Ensure your contract explicitly specifies the conditions for its return. It is highly advisable to conduct a detailed, documented inventory of the property's condition, including photos and videos, upon moving in and out, signed by both parties, to avoid disputes over the return of your deposit.
Bank Accounts & Transfers: Opening a local bank account typically requires a Carné de Extranjería (residency permit) and a local tax ID (RUC or DNI if you've transitioned to a resident identity card). Until then, managing finances might involve international transfers, which can incur fees. Explore services like Wise (formerly TransferWise) for often more favorable exchange rates and lower fees for international money transfers.
"Gringo Pricing": While less prevalent in Arequipa than some major tourist centers, be mindful of potentially being quoted higher prices for goods or services if you are perceived as a foreigner. Always confirm prices before committing, especially for taxis or goods in non-fixed-price settings (e.g., smaller markets, artisan shops). Learning some basic Spanish will be invaluable in navigating daily interactions and securing fair prices.

Arequipa offers a remarkable blend of colonial charm, modern amenities, and a significantly affordable lifestyle for expats. With careful budgeting, legal diligence, and an understanding of local customs, you can establish a comfortable and enriching life in this beautiful city.

⚠️ Legal Notice: Consult a Local Lawyer.

The information provided in this article is for general informational purposes only and does not constitute legal or financial advice. We are licensed real estate professionals, not attorneys or financial advisors. Foreign residents and investors should always consult with a qualified Peruvian attorney and/or financial advisor regarding specific legal, tax, or investment matters before making any decisions. Laws and regulations can change, and individual circumstances vary.

Ready to explore your living options in Arequipa? Visit ArequipaRealEstate.com to browse properties, connect with our expert team, and make your move to Arequipa seamless.