Barrios & Fuentes Abogados
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes. Foreigners can own and occupy real estate and can hold shares in properties owing companies. There are no restrictions on foreigners owing or occupying real state. Except for the restriction of article 71 of the Political Constitution of Peru which establishes that within fifty kilometres of the borders, foreigners cannot acquire or possess mines, land, forests, waters, fuels or energy sources, directly or indirectly, individually or in society.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
No, with exception of what was mentioned in the previous paragraph.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The Buyer must pay a 3% tax on the purchase price.
If the real estate is new and sold by a construction company, Sale Tax (18%) is applicable, but only on the construction value.
If the Seller is not a company (natural person), it must pay a 5% Income Tax applicable to the profit. The sale of a real estate purchase before 2004, it is exonerated of Income Tax.
In a year term, the Seller could make 2 real estate sales with a 5% Income Tax, but if a 3rd sale is made in the same year, that sale is subject to 29.5 % Income Tax. However, if the real estate is the place (home) where the Seller has been living for more than 2 years, no Income Tax is applicable.
If the Seller is a company, it is subject to a 29.5% Income Tax applicable to the profit.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
The owner of a property pays a Real State Tax to the Municipality where the property is located. Such Real State Tax could not be passed to someone else.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
No.
How is the ownership of Real Estate evidenced in your jurisdiction?
The ownership of the real estate is evidenced by a registration in the Real Estate Public Registry of the Public Registry of the city where the real estate is located.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
All documents filed at the Public Registry are public.
Ownership of some kind companies is public information and could be requested openly, with exception of Public Limited Companies (Sociedad Anónima or Sociedad Anónima Cerrada).