A Simple Guide to Notary Fees for Real Estate Transactions in Arequipa

As a licensed Peruvian real estate broker with years of experience navigating the Arequipa market, I can tell you that understanding the role and costs of a public notary is paramount for any successful and secure property transaction in Peru. For expats and foreign investors, the notary acts as a cornerstone of legal certainty, verifying every detail to protect your investment. This guide will demystify notary fees, explaining what they cover, how they are calculated, and what to expect when buying property in the White City.

Why a Notary is Non-Negotiable in Peruvian Real Estate

In Peru, the involvement of a Public Notary ( Notario Público ) is not merely a formality; it is a legal requirement for the vast majority of real estate transactions, particularly for the transfer of ownership. A private purchase agreement (Minuta or Contrato de Compra-Venta) is a preliminary step, but it must be elevated to a Public Deed (Escritura Pública) before it can be registered with the National Superintendence of Public Registries (S.U.N.A.R.P.). Without this Escritura Pública and subsequent registration, legal ownership is not fully transferred, leaving your investment vulnerable.

The notary's role extends far beyond simply stamping documents. They are highly trained legal professionals with significant responsibilities, including:

Identity Verification: Ensuring all parties involved are who they claim to be, preventing fraud.
Legal Capacity Assessment: Confirming that parties have the legal right to buy or sell.
Property Title Research: Conducting due diligence through S.U.N.A.R.P. to verify the property's legal status, ownership history, absence of liens, encumbrances, or disputes. This includes obtaining a Copia Literal (certified copy of the registry entry) and a Certificado de Gravámenes (certificate of encumbrances).
Reviewing & Elevating Documents: While the initial private purchase agreement (Minuta) is typically drafted by the parties' lawyers, the notary meticulously reviews it, verifies its legality, and then formally prepares and authorizes the Escritura Pública (Public Deed) to reflect the agreement accurately and comply with all Peruvian laws.
Tax Compliance: Ensuring that all necessary taxes, such as Alcabala (property transfer tax), are paid before the deed is submitted for registration.
Public Record Creation: Authorizing the Escritura Pública, which becomes a permanent public record and the basis for S.U.N.A.R.P. registration.

Skipping the notary process is not an option for securing your property rights in Peru. It’s an investment in the legal integrity and safety of your purchase.

Understanding Notary Fees in Arequipa: The Components

Notary fees are not a single, fixed cost but rather a composite of several elements, each serving a specific purpose. Understanding these components is crucial for budget planning.

Professional Fees (Honorarios Profesionales): This is the notary's direct compensation for their legal expertise, time, and responsibility in drafting, reviewing, and authorizing the Public Deed. This fee is generally calculated on a sliding scale, typically a percentage of the property's transaction value. Higher transaction values usually result in a lower percentage rate, though there is often a fixed minimum fee for smaller transactions.
Administrative Costs (Gastos Administrativos): These cover the operational expenses incurred by the notary's office in processing your transaction. This can include:
- Official forms and stamps.
- Preparation of multiple certified copies (copias certificadas).
- S.U.N.A.R.P. searches (búsquedas registrales) and obtaining crucial documents like the Copia Literal and Certificado de Gravámenes.
- File management and storage.
- Courier services for submitting documents to S.U.N.A.R.P.
General Sales Tax (IGV - Impuesto General a las Ventas): In Peru, professional services are subject to IGV, which is currently 18%. This tax is applied only to the notary's professional fee, not to the administrative costs or other taxes the notary collects on behalf of the state.

Other Related Costs Handled by the Notary (but not part of their direct fee):

While not part of the notary's fee, these are significant costs that the notary's office typically collects and facilitates payment for, making them an integrated part of your overall transaction expenses:

Alcabala (Property Transfer Tax): This is a municipal tax levied on the transfer of real estate. The rate is 3% of the property's value (either the transaction price or the cadastral value, whichever is higher), minus an exemption equivalent to 10 Tax Units (UIT - Unidad Impositiva Tributaria). For 2024, one UIT is PEN 5,150, so the exemption is PEN 51,500. The notary is legally obligated to ensure this tax is paid before the deed can be registered with S.U.N.A.R.P.
S.U.N.A.R.P. Registration Fees (Derechos Registrales): These are official fees charged by S.U.N.A.R.P. to register the new Public Deed and update the property's ownership record. These fees are relatively small and fixed, usually a few hundred soles depending on the complexity and type of registration.

How Notary Fees are Calculated: A Step-by-Step Guide

Estimating notary fees involves considering all the components mentioned above. While precise figures will vary by notary and transaction complexity, here’s a practical guide:

Step 1: Determine the Transaction Value This is the agreed-upon sale price of the property, stated in your purchase agreement (Minuta). For the notary's professional fees, this transaction value serves as the basis. For taxes like Alcabala, the legal basis is the higher of the transaction value or the property's cadastral value (autoavalúo).
Step 2: Calculate the Notary's Professional Fee This is typically a percentage of the transaction value.
- For properties with lower values (e.g., under USD $50,000), there might be a fixed minimum fee (e.g., PEN 1,500 - PEN 2,500).
- For properties with higher values (e.g., USD $100,000 to $500,000), the percentage can range from approximately 0.5% to 1.5% of the transaction value. The percentage usually decreases as the value increases.
- Example (for a USD $150,000 property, assuming 1 USD = 3.7 PEN for calculation):
  - Property Value: USD $150,000 = PEN 555,000
  - Estimated Notary Professional Fee: Let's assume 0.8% for this range:
    - PEN 555,000 x 0.008 = PEN 4,440
Step 3: Add Administrative Costs These are generally a fixed amount, varying slightly between notaries.
- Estimated Administrative Costs: PEN 400 - PEN 800
- Example: Let's use PEN 600.
Step 4: Add IGV (18%) to the Professional Fee
- IGV on Professional Fee: PEN 4,440 x 0.18 = PEN 799.20
Step 5: Calculate and Factor in Alcabala (Property Transfer Tax)
- Property Value: PEN 555,000
- Exemption (10 UIT for 2024): PEN 51,500
- Taxable Amount: PEN 555,000 - PEN 51,500 = PEN 503,500
- Alcabala (3%): PEN 503,500 x 0.03 = PEN 15,105
Step 6: Factor in S.U.N.A.R.P. Registration Fees
- These are usually quite modest.
- Estimated S.U.N.A.R.P. Fees: PEN 250 - PEN 500
- Example: Let's use PEN 350.

Total Estimated Costs for a PEN 555,000 (USD $150,000) Property:

Notary Professional Fee: PEN 4,440
Administrative Costs: PEN 600
IGV (on Professional Fee): PEN 799.20
Alcabala Tax: PEN 15,105
S.U.N.A.R.P. Registration Fees: PEN 350
TOTAL ESTIMATED TRANSACTION COSTS: PEN 21,294.20

(Approximately USD $5,755 at 1 USD = 3.7 PEN)

This example illustrates that the Alcabala tax is often the largest single component of these "related costs," far exceeding the notary's direct professional fee.

Local Context & Warnings for Arequipa

Arequipa presents some unique considerations for foreign investors:

Historical Properties: If you are investing in a property within Arequipa's UNESCO World Heritage historic center, be aware that additional permits or reviews might be required by the Dirección Desconcentrada de Cultura de Arequipa. While the notary's fees won't directly increase, the notary's due diligence process may involve verifying the existence and compliance of these specific historical property documents, adding a layer of complexity to the overall transaction. Always ensure your chosen notary has experience with this specialized area.
Notary Selection: Arequipa has many reputable notaries, particularly in established areas like Yanahuara, Cayma, and the city center, who are well-versed in handling transactions for foreign clients. As your broker, I advise against being swayed by significantly lower quotes from less-known notaries, as this could indicate a compromise on diligence or service. Reputable notaries are crucial for the safety of your investment.
Language Barrier: While many notaries or their staff may speak some English, it's prudent to ensure full comprehension. If you are not fluent in Spanish, engage a trusted, independent lawyer or a certified translator who can review documents and explain the process clearly. Do not rely solely on the notary's staff for translation if you have any doubts.
Pre-contractual Agreements: Even if you start with a private purchase agreement (Minuta), ensure your attorney (and ideally, the notary) reviews it thoroughly before you sign. This sets the stage for the public deed and avoids costly rectifications later.

Safety Checks & Best Practices

To ensure a smooth and secure transaction:

Always Request a Detailed Quote: Before committing, ask the notary for a clear, itemized breakdown of all anticipated costs, including professional fees, administrative expenses, IGV, and estimates for Alcabala and S.U.N.A.R.P. fees.
Verify Notary Credentials: Confirm that the notary is officially registered with the Colegio de Notarios de Arequipa. Your real estate broker or lawyer can assist with this.
Demand Receipts: Insist on official receipts (comprobantes de pago) for all payments made.
Understand Every Document: Never sign any document you do not fully understand. Take your time, ask questions, and consult your lawyer if anything is unclear.

Conclusion

The fees associated with a public notary in Arequipa are a fundamental and necessary component of purchasing real estate in Peru. While they represent a cost, they are an indispensable investment in the legal security and future value of your property. By understanding these fees and the critical role the notary plays, you can approach your Arequipa real estate investment with confidence and clarity.

⚠️ Legal Notice: Consult a Local Lawyer. The information provided in this article is for general informational purposes only and does not constitute legal advice. Real estate laws and regulations in Peru can be complex and are subject to change. It is imperative that you consult with a qualified, independent Peruvian real estate attorney and a licensed real estate broker in Arequipa before making any investment decisions or entering into any property transactions.

Planning your real estate investment in Arequipa? For expert guidance and access to exclusive property listings, visit ArequipaRealEstate.com today.