Can You Buy Property in Peru on a Tourist Visa? The Facts for Foreign Investors

Drawing on my extensive experience as a licensed Peruvian real estate broker in Arequipa, I frequently encounter questions from foreign investors regarding the legality and practicality of purchasing property while visiting on a tourist visa. The short answer, unequivocally, is yes, it is possible for a foreigner to buy property in Peru, even if your only current immigration status is a tourist visa. However, while legally permissible, the process is laden with critical nuances, practical challenges, and requires a meticulous approach to due diligence and legal representation.

This article, crafted for serious investors and expats considering Arequipa, will guide you through the intricacies, legal requirements, and essential steps to ensure a secure and successful property acquisition in Peru.

The Legal Framework: Foreigners and Property Ownership in Peru

Peru's legal framework is generally welcoming to foreign investment in real estate.

Constitutional Right: Article 71 of the Peruvian Constitution explicitly grants foreigners the same rights as Peruvians regarding property ownership, investment, and contractual matters. This means there's no inherent legal barrier to a non-resident acquiring real estate.
The Border Zone Exception: The main restriction, which rarely applies to major urban centers like Arequipa, is that foreigners cannot own property within 50 kilometers of Peru's international borders without specific governmental authorization. Arequipa city is situated well outside this restricted zone.
No Residency Requirement for Ownership: Crucially, Peruvian law does not require you to be a resident to own property. Your tourist visa, while dictating the length of your stay, does not impede your ability to enter into a property purchase agreement.

However, while ownership is permitted, the process of acquiring property can be significantly more challenging without a stable legal status (like residency) or, more practically, a robust legal team empowered to act on your behalf.

The Tourist Visa Conundrum – What It Means (and Doesn't Mean)

Your tourist visa allows you to visit Peru for a limited period, typically 90 days, which can often be extended. What it doesn't do is grant you the same ease of access to administrative processes as a resident. This impacts aspects like opening bank accounts, obtaining a Peruvian tax ID (RUC), and efficiently managing your property if you need to leave the country. This is where strategic planning and professional assistance become indispensable.

Step-by-Step Guide: Buying Property on a Tourist Visa (or While Visiting)

Navigating the Peruvian real estate market as a foreigner, especially on a tourist visa, demands a structured, step-by-step approach focused on protection and compliance.

Step 1: Secure Unwavering Legal Representation

This is not merely a recommendation; it is an absolute necessity. A specialized, bilingual Peruvian real estate lawyer will be your shield and sword.

Why a Lawyer is Paramount:
- Due Diligence: They will conduct the exhaustive checks required (detailed below).
- Contract Review & Drafting: Ensuring all agreements are legally sound and protect your interests.
- Power of Attorney (POA): If you need to leave Peru, a POA allows your lawyer (or a trusted representative) to act on your behalf for signing documents, opening bank accounts, obtaining your RUC, and handling other administrative tasks. This is a critical tool for tourist visa holders.
- Navigating Bureaucracy: Peruvian bureaucracy can be complex. Your lawyer understands the processes, required documentation, and local nuances.
- Language Barrier: Overcoming potential misunderstandings due to language differences.
Selection: Choose a lawyer with a proven track record in real estate, particularly with foreign clients, and ideally, one intimately familiar with Arequipa's specific regulations and municipal procedures.

Step 2: Obtain Your Peruvian Tax ID (RUC)

For any significant financial transaction in Peru, including property purchases, you will need a Peruvian Tax ID number, known as RUC (Registro Único de Contribuyentes).

Necessity: The RUC is required for signing the public deed (Escritura Pública), paying property taxes, and generally operating within the Peruvian financial system.
How to Obtain It: While you can attempt to get one in person at SUNAT (the national tax authority) with your passport and a temporary local address (e.g., your hotel or rental agreement), it is often far more efficient for your lawyer to obtain it on your behalf via a Power of Attorney. This avoids potential delays and communication issues.

Step 3: Property Search and Initial Offers

With your legal team engaged, you can confidently begin your property search. ArequipaRealEstate.com offers curated listings in desirable neighborhoods.

Initial Offer: Once you find a property, your lawyer will help draft an initial offer.
Earnest Money (Arras): It's common practice to pay a small earnest money deposit (arras) to take the property off the market while due diligence is conducted. This amount is usually 5-10% of the purchase price and is typically held in escrow by the notary or a reputable real estate agency, or paid directly to the seller with a robust pre-purchase agreement (Minuta de Arras). Your lawyer will advise on the safest and most legally sound way to manage this.

Step 4: Comprehensive Due Diligence – The Foundation of a Secure Investment

This is the most critical stage, where your lawyer's expertise is indispensable. Skipping or rushing due diligence is the primary cause of future legal headaches.

S.U.N.A.R.P. (National Superintendency of Public Registers) Checks:
- Title Search: Verify the seller is the undisputed legal owner and that the property is accurately described and registered in the public registry.
- Encumbrances: Crucially, check for any liens, mortgages, easements, judgments, or other legal encumbrances that could affect your ownership or use of the property.
- Marital Status: Confirm the seller's marital status, as spousal consent is often required for the sale of communal property under Peruvian law.
- Property History: Review the chain of ownership to ensure no past irregularities.
Municipal Records Review:
- Property Taxes (Impuesto Predial): Ensure all past annual property taxes are paid up to date. Outstanding taxes transfer with the property.
- Utility Debts: Check for any unpaid water (Sedapar) or electricity (Seal) bills, as these can also become your responsibility.
- Zoning & Permits: Verify that the property's use aligns with municipal zoning regulations and that any significant renovations or additions have the necessary permits.
Technical & Physical Inspection:
- Beyond legal checks, conduct a thorough physical inspection of the property's structural integrity, plumbing, electrical systems, and overall condition. This is particularly important for older homes, where issues can be hidden.
Local Context/Warning: Historic Property Rules in Arequipa Arequipa's historic center, a UNESCO World Heritage site, has stringent regulations governed by the Municipality of Arequipa and the Ministry of Culture. If you are considering a property within this zone (or even sometimes near it):
- Renovation Restrictions: Major structural changes, alterations to facades, and use of non-traditional materials (other than the distinctive white sillar stone) are heavily regulated or prohibited.
- Permit Requirements: Any renovation or restoration work requires specific permits, which can be time-consuming and costly to obtain.
- Impact on Value & Use: These rules can significantly impact your ability to modify the property, potentially affecting its suitability for certain commercial uses or personal preferences. Your lawyer and a local architect should be consulted for historic properties.

Step 5: Drafting the Purchase Agreement (Minuta de Compraventa)

Once due diligence is complete and satisfactory, your lawyer will draft the formal purchase agreement.

Key Details: This document specifies the property's exact description, the agreed-upon purchase price, payment terms, deadlines, responsibilities of each party, and penalties for non-compliance.
Signatures: All parties (buyer, seller, and their spouses if applicable) will sign this agreement, often before a notary.

Step 6: Notarization (Elevación a Escritura Pública)

The purchase agreement (Minuta) must be "elevated to a public deed" (Escritura Pública) before a Peruvian Public Notary (Notario Público).

Notary's Role: The notary is a public official who verifies the identity of all parties, ensures they understand the transaction, confirms their legal capacity to enter the agreement, and witnesses the signing. They also ensure all necessary documents (RUC, passports, etc.) are in order.
Formal Deed: This Escritura Pública is the official, formal document proving the transaction. If you are using a Power of Attorney, the notary will verify its validity and ensure your representative has the authority to sign on your behalf. This is crucial if you cannot be present for the signing due to visa limitations.

Step 7: Registration at S.U.N.A.R.P.

After notarization, the notary submits the Escritura Pública to S.U.N.A.R.P. for registration.

Official Ownership Transfer: This step officially records the transfer of ownership from the seller to you in the public registry.
Protection: Until the property is registered in your name at S.U.N.A.R.P., your ownership is not fully protected under Peruvian law. This process typically takes a few days to a couple of weeks.

Step 8: Payment of Taxes and Fees

Several taxes and fees are involved in a property purchase in Peru.

Alcaba (Transfer Tax): This is a municipal tax paid by the buyer, amounting to 3% of the sale price (or cadastral value if higher). Critically, it is applied only to the portion of the price that exceeds 10 UIT (Unidad Impositiva Tributaria). For 2024, 1 UIT is S/5,150, meaning the first S/51,500 (approximately USD $13,500) of the purchase price is exempt from this tax.
Notary Fees: Varies based on property value and complexity, typically 0.5% to 1% of the sale price.
Registration Fees: Relatively small, fixed fees for registering the deed at S.U.N.A.R.P.
Lawyer Fees: As agreed upon for their services.
Seller's Capital Gains Tax: The seller is typically responsible for Capital Gains Tax (Impuesto a la Renta por Enajenación) on the profit from the sale, unless it's their primary residence held for at least two years. While this doesn't directly affect the buyer's costs, your lawyer will ensure the seller complies, as outstanding tax issues can sometimes complicate future transactions.

Step 9: Utility Transfers

Once registered as the owner, you (or your lawyer via POA) will need to transfer the utility accounts (electricity, water, internet) into your name. This usually requires your RUC number or Carné de Extranjería (foreigner's ID card), if you obtain residency.

Practical Considerations for Tourist Visa Holders

While legally possible, managing the logistics on a tourist visa presents unique challenges:

Time Limitations: A typical 90-day tourist visa can be tight for a comprehensive property purchase process, especially if unexpected delays occur or if you need to perform significant due diligence. An extension is often possible, but relying on it can add stress. This is where a reliable Power of Attorney becomes invaluable, allowing the process to continue even if you must leave Peru.
Opening a Bank Account: As a non-resident, opening a traditional bank account in Peru can be difficult, if not impossible, for many banks due to stringent "Know Your Customer" (KYC) regulations. While some smaller institutions or specific branches might be more flexible, it's not guaranteed. Your lawyer, with a robust POA, can sometimes facilitate opening an account in your name or manage transaction-related funds through their firm's designated client account. Avoid large cash transactions due to money laundering concerns and practical risks.
Managing Property Remotely: If you purchase property and then leave Peru, consider professional property management services. This ensures your investment is maintained, bills are paid, and any rental income is managed efficiently and legally.

Cost Overview for Foreign Buyers in Arequipa

Beyond the purchase price, consider these approximate closing costs for the buyer:

Lawyer Fees: Typically 1% to 3% of the property value, or a fixed fee for comprehensive due diligence and closing services.
Notary Fees: Approximately 0.5% to 1% of the property value.
S.U.N.A.R.P. Registration Fees: Relatively small, fixed fees.
Alcaba (Transfer Tax): 3% on the amount exceeding 10 UIT (approx. S/51,500 or $13,500 USD).
Total Closing Costs (Buyer): Expect to budget approximately 4% to 6% of the property's purchase price to cover all these fees, excluding any real estate agent commissions (which are typically paid by the seller in Peru).

Reliable Neighborhoods in Arequipa for Expats & Investors

Arequipa offers a range of attractive neighborhoods, each with its own character. For foreign investors and expats, I often recommend:

Yanahuara: Renowned for its colonial architecture, beautiful miradores (viewpoints overlooking the city and Misti volcano), and serene atmosphere. It's a highly desirable and safe residential area with good amenities and a charming, historic feel.
Cayma: A larger, more modern district with excellent infrastructure, shopping centers, and a mix of residential and commercial properties. It offers a comfortable, suburban feel with easy access to the city center and a variety of housing options.
Sachaca: A quieter, more suburban area offering larger lots and a peaceful, semi-rural environment. It's a bit further from the hustle and bustle but provides good value, green spaces, and a pleasant setting.
Cercado (Historic Center): While charming and iconic, properties here come with strict renovation rules, higher foot traffic, and potential noise concerns. Ideal for those seeking an authentic, vibrant Arequipan experience and who appreciate historic preservation.

Conclusion

Buying property in Peru on a tourist visa is indeed possible and can be a highly rewarding investment in Arequipa's thriving market. However, it is an endeavor that demands vigilance, a thorough understanding of Peruvian legal processes, and, above all, the guidance of experienced local professionals. Your success hinges on meticulous due diligence and empowering a trusted legal team to navigate the complexities on your behalf.

⚠️ Legal Notice: Consult a Local Lawyer. The information provided in this article is for general informational purposes only and does not constitute legal, financial, or investment advice. Real estate laws and regulations in Peru can be complex and may change. It is imperative to consult with a licensed Peruvian real estate attorney and other relevant professionals (e.g., tax advisors, notaries) to obtain advice tailored to your specific situation before making any property purchase decisions.

Ready to explore the enchanting real estate opportunities in Arequipa? Visit ArequipaRealEstate.com to browse our exclusive listings and connect with our expert team for personalized guidance.