Are Notary and Registration Fees Negotiable in Peru? A Deep Dive for Foreign Investors

As a foreign investor or expat looking to acquire property in the beautiful White City of Arequipa, understanding the full scope of transaction costs is paramount. Beyond the agreed-upon purchase price, a significant portion of your budget will be allocated to legal and administrative fees, primarily those associated with the Notary Public and the National Superintendency of Public Registries (S.U.N.A.R.P.). A common question we receive at ArequipaRealEstate.com is: "Are these notary and registration fees negotiable?"

The short, definitive answer is largely no, at least not in the way you might negotiate the price of a property or a real estate agent's commission. The core components of these fees are either legally mandated, government-regulated, or determined by established professional scales. However, a nuanced understanding of how these costs are structured can help you budget accurately and navigate the acquisition process effectively.

This article, written by a licensed Peruvian real estate broker with extensive experience in Arequipa, will clarify the nature of these essential fees, detail the processes involved, and provide critical local context and warnings for foreign investors.

Understanding the Peruvian Legal Framework for Property Transfer

Before delving into the specifics of fees, it’s crucial to grasp the two pillars of secure property transfer in Peru:

1. The Notary Public (`Notario Público`)

A Peruvian Notary Public is a highly regulated legal professional vested with public faith (fe pública). Their role is to ensure the legality, authenticity, and certainty of all legal acts, including property sales. They draft the Public Deed (Escritura Pública), verify identities, review documents, and attest to the free will of the parties involved. Without a Notary, a property transfer cannot be legally constituted and registered.

2. S.U.N.A.R.P. (Superintendencia Nacional de los Registros Públicos)

This is the national body responsible for maintaining public records, including the Property Registry. Once a Public Deed is signed before a Notary, it must be presented to S.U.N.A.R.P. for registration. This registration process is what officially transfers ownership and makes your property rights enforceable against third parties. Until your ownership is recorded in S.U.N.A.R.P., your title is not fully secure. In Arequipa, the regional S.U.N.A.R.P. office handles all local property registrations.

The Nature of Notary Fees (`Gastos Notariales`)

Notary fees cover the services provided by the Notary Public for drafting, reviewing, legalizing, and processing the Public Deed of Sale (Escritura Pública de Compraventa). These services are indispensable for a valid property transaction.

What Notary Fees Cover:

Drafting the Public Deed: The primary document that formalizes the sale.
Review of Legal Documents: Ensuring the seller's title is clear, checking for liens, encumbrances, or restrictions (e.g., at S.U.N.A.R.P. and the municipality).
Identity Verification: Confirming the identities of all parties involved.
Authentication of Signatures: Ensuring all signatures are genuine.
Witnessing the Act: The Notary formally witnesses the signing of the Public Deed.
Archiving: Maintaining a protocolary record of the deed.
Processing: Submitting the Public Deed to S.U.N.A.R.P. for registration after all other requirements (like tax payments) are met.

How Notary Fees are Determined:

Notary fees are generally calculated based on a notarial scale (arancel notarial) which considers the complexity of the transaction and, crucially, the declared value of the property in the Public Deed. While there isn't a single, rigid national fee schedule, established practices and guidelines are followed.

Percentage of Property Value: Notary fees typically range from 0.25% to 0.5% or sometimes slightly more of the property's declared sale value. For instance, a property in a desirable Arequipa neighborhood like Yanahuara or Cayma, valued at $250,000 USD (approximately S/ 925,000 at an exchange rate of S/ 3.70 per USD), could incur notary fees ranging from S/ 2,312 to S/ 4,625 ($625 to $1,250 USD). This percentage often decreases incrementally for very high-value properties.
Fixed Fees for Specific Acts: Some smaller administrative acts (e.g., powers of attorney, certified copies) may have fixed fees.
Complexity: Transactions involving multiple parties, mortgages, specific clauses, or properties with complex historical titles (common in Arequipa's historic center) may incur slightly higher fees due to increased work.

Are Notary Fees Negotiable?

The core percentage or base fee for drafting the Public Deed is generally not negotiable. This is tied to the legal responsibility and public faith associated with the Notary's office.

Limited Variance: While you might find a slight difference in total cost between different Notaries, this usually comes down to minor administrative charges, copying fees, or perhaps how they calculate the value-based portion, rather than a true negotiation of their professional services.
Focus on Reputation, Not Price: For a foreign investor, choosing a reputable, experienced, and thorough Notary in Arequipa is far more critical than saving a few soles. A diligent Notary can prevent future legal headaches. Your independent Peruvian real estate lawyer will typically recommend a trusted Notary.
Transparency: A professional Notary will provide a detailed breakdown of their fees upfront.

The Nature of Registration Fees (`Derechos Registrales` / `Tasas Registrales`)

Registration fees are paid to S.U.N.A.R.P. to record the property transfer in the public registry. These fees are standardized and mandatory.

What Registration Fees Cover:

Processing the Registration Request: The administrative work involved in reviewing the Public Deed and associated documents.
Updating the Property Record (Partida Registral): Modifying the ownership details in S.U.N.A.R.P.'s database.
Issuance of New Title: Reflecting the new owner.

How Registration Fees are Determined:

S.U.N.A.R.P. fees are fixed rates or small percentages based on the declared value of the property, set by S.U.N.A.R.P. itself. These are published annually and apply uniformly across the country.

Fixed Base Fee + Variable Component: Typically, there is a relatively small fixed base fee, plus a variable component calculated as a tiny percentage of the property's declared value (e.g., 0.1% to 0.2%).
Example: For a property valued at S/ 925,000, registration fees might be around S/ 900 to S/ 1,800 ($240 to $480 USD), comprising a base fee and the percentage.

Are Registration Fees Negotiable?

Absolutely not. These are government-mandated fees and are non-negotiable. They must be paid in full to S.U.N.A.R.P. for the registration process to proceed.

Other Related, Non-Negotiable Costs

While not notary or registration fees, these are crucial, non-negotiable costs directly associated with the property transfer that foreign investors must budget for:

1. Property Transfer Tax (`Alcabala`)

What it is: A municipal tax levied on the buyer for the acquisition of real estate.
How it's calculated: 3% of the property's sale value that exceeds 10 Unidades Impositivas Tributarias (UIT).
The UIT: The UIT is an official reference value set annually by the government. For 2024, the UIT is S/ 5,150. Therefore, 10 UIT = S/ 51,500.
Example: If a property sells for S/ 925,000, the taxable base is S/ 925,000 - S/ 51,500 = S/ 873,500. The Alcabala would be 3% of S/ 873,500 = S/ 26,205 (approximately $7,082 USD).
Negotiability: Non-negotiable. This is a tax, and it must be paid to the respective municipality (e.g., Municipality of Yanahuara for a property in that district) before S.U.N.A.R.P. will register the Public Deed.

2. Legal Fees (for your own lawyer)

While technically negotiable with your chosen legal counsel, engaging an independent Peruvian lawyer is an absolute necessity for foreign investors. Your lawyer will represent your interests, review all documents, conduct due diligence, and guide you through the entire process. Their fees are a wise investment, not an optional expense.

Step-by-Step Property Transfer Process (Where Fees Arise)

Here’s a simplified overview of the property transfer process in Arequipa, highlighting when and where these non-negotiable fees come into play:

Initial Due Diligence & Offer:
- Tools: Independent real estate broker (like ArequipaRealEstate.com), independent Peruvian lawyer.
- Safety Check: Your lawyer conducts preliminary S.U.N.A.R.P. checks on the property title and seller's identity.
- Costs: Your lawyer's initial consultation fees.
Private Purchase Agreement (Minuta):
- Tools: Lawyer.
- This is a private agreement drafted by a lawyer (yours or the seller's, but reviewed by yours) outlining the terms of the sale.
- Costs: Lawyer fees.
Elevation to Public Deed (Escritura Pública) at the Notary:
- Tools: Notary Public, your lawyer.
- The Minuta is presented to the Notary, who prepares the official Public Deed. All parties sign before the Notary.
- Safety Check: The Notary ensures all documents are in order, identities are verified, and the act is legal.
- Costs: Notary fees are paid here.
Payment of Alcabala:
- Tools: Notary (facilitates), municipality.
- After the Public Deed is signed (or sometimes before), the Alcabala tax is paid to the relevant municipal authority in Arequipa. The Notary will require proof of payment.
- Safety Check: Ensure accurate calculation and proper payment to avoid delays.
- Costs: Alcabala tax is paid here.
Registration at S.U.N.A.R.P.:
- Tools: Notary (submits documents), S.U.N.A.R.P.
- The Notary submits the Public Deed, along with proof of Alcabala payment, to S.U.N.A.R.P. in Arequipa.
- Costs: S.U.N.A.R.P. registration fees are paid here.
Final Registration & Title:
- S.U.N.A.R.P. processes the registration, updates the property record (Partida Registral), and officially transfers ownership. This usually takes a few business days to a couple of weeks, depending on complexity and S.U.N.A.R.P.'s workload.

Local Context/Warning: The Pitfalls of Undervaluation and Informal Deals in Arequipa

A common temptation, particularly among those unfamiliar with Peruvian legalities or seeking to cut corners, is to try and reduce the declared property value in the Public Deed. The rationale is to lower the payable Alcabala tax, and consequently, the Notary and S.U.N.A.R.P. fees (which are value-based).

This practice is highly discouraged and carries significant risks for foreign investors:

Legal Repercussions: Deliberately declaring a lower value than the actual sale price constitutes tax evasion. This can lead to severe fines from SUNAT (the national tax authority) and the municipality, and potentially even criminal charges.
Title Challenges: An undervalued deed can raise red flags and complicate future sales or mortgage applications. It could also create issues if the previous owner's capital gains tax is questioned.
Capital Gains Tax Issues: When you eventually sell the property, your capital gain will be calculated based on the declared purchase price versus the sale price. An artificially low purchase price will result in a significantly higher declared capital gain, leading to a much larger capital gains tax payment for you in the future.
Proof of Funds: For foreign investors, showing a clear, legally sound paper trail for your investment is crucial for financial compliance both in Peru and your home country. Undervaluation undermines this transparency.
Historic Properties in Arequipa: Arequipa's UNESCO World Heritage status means many properties, especially in the historic center, come with specific conservation rules and often more complex title histories. While this doesn't change the basic fee structure, the due diligence required can be more extensive. Attempting undervaluation on such properties, which often have unique appraisals, is particularly risky and can lead to intense scrutiny. Always ensure a professional, independent appraisal for these properties.
Informal Agreements: Never rely on informal "handshake" deals or private documents outside of the notarized and registered process. In Peru, only a Public Deed registered with S.U.N.A.R.P. provides true legal ownership and protection.

Safety Check: Always ensure the declared value in the Public Deed accurately reflects the true sale price. Work with a reputable Notary and your independent lawyer who prioritize legal compliance over short-term savings.

Strategies for Managing (Not Negotiating) Costs

Since the core notary and registration fees are largely non-negotiable, your strategy should focus on accurate budgeting and choosing competent professionals:

Budget Accurately from the Outset: Factor in at least 5% to 7% of the property's sale price for closing costs, including Notary fees, S.U.N.A.R.P. fees, Alcabala, and your independent legal counsel. For example, a $250,000 property could incur $12,500 to $17,500 in additional closing costs. This is a conservative estimate, and your lawyer can provide a more precise breakdown for your specific transaction.
Choose a Reputable Notary: Prioritize experience, diligence, and integrity over finding the absolute cheapest option. A good Notary safeguards your investment.
Engage an Independent Peruvian Lawyer: This is your most critical investment. Your lawyer will protect your interests, conduct thorough due diligence, verify the property's legal status, and ensure all documents comply with Peruvian law. Their fees are a safeguard.
Understand the UIT: Keep track of the annual Unidad Impositiva Tributaria value as it directly impacts your Alcabala tax calculation.
Demand Transparency: Request a clear, itemized breakdown of all fees from your Notary and lawyer before proceeding.

Summary & Key Takeaways

For foreign investors in Arequipa, understanding the costs associated with property acquisition is critical. While real estate agent commissions are typically negotiable, the essential notary and S.U.N.A.R.P. registration fees, along with the Alcabala transfer tax, are largely non-negotiable and legally mandated.

These costs are a fundamental part of establishing secure property ownership in Peru. Attempting to circumvent or undervalue the transaction to save on these fees carries substantial legal risks and can compromise your investment. Your focus should be on accurate budgeting and ensuring a fully compliant, transparent process, guided by trusted local professionals.

⚠️ Legal Notice: Consult a Local Lawyer. The information provided in this article is for general guidance only and does not constitute legal advice. Peruvian real estate law is complex and subject to change. Foreign investors are strongly advised to consult with an independent, licensed Peruvian lawyer specializing in real estate transactions before making any investment decisions. ArequipaRealEstate.com does not provide legal services.

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