Real Estate in Peru For Sale and For Rent
Premier Casa Peru Real Estate Sales, Rentals and Property Management
With the recovery of the real estate market in Peru in the last years real estate experts agree on the fact that the market is growing, with an expected higher profitability for investors.
Furthermore, since there are no governmental restrictions on foreign investment on Peruvian property investing in real estate in Peru is an attractive business model.
What makes the real estate market attractive is that recent legislation passed which greatly reduces the tax burden for non-domiciled owners, meaning foreigners. The capital gains tax for this group of owners of Peruvian real estate was reduced from 30% to 5%. Consequently, you are likely to pay significantly less in capital gains taxes from real estate as a foreigner in Peru than in many other countries.
Ultimately, it is all about finding a market that suits your individual objectives and hire an experienced real estate attorney who can advise and guide you through the process.
Who we are
Premier Casa Peru real estate is a full service international company based in Lima, Peru, with a full range of real estate services, including property sales, commercial real estate, asset management, real estate tours and more, which specializes in long and short term sales and rentals within Lima Peru.
Premier Casa Peru provides the highest standards of quality and integrity in all transactions related to property sales, management and advisory services. Our reputation for uncompromising real estate professionalism in everything we do is earned day to day by serving our clients and earning their trust.
Real Estate Sales
Whether you intend to buy a plot of land, a house, or a condo in Peru, there are key considerations of this process to help you formulate your investment plan.
Both foreign residents and nonresidents may buy real estate in Peru. Investment in Peru real estate property does not require government approval, unless such property is in vicinity of Peru's frontiers. Foreigners are restricted to own property that is close to government installations and military bases. Foreigners' ownership of real estate in Peru is generally absolute. It is common for expats to be represented by a real estate agent, as the whole process is more
Real Estate Rentals
The land of Machu Picchu is an intriguing destination. Visitors are enchanted by Peru's scenic beauty and warmhearted people. Its pleasing weather and laidback, yet affordable lifestyle are added advantages, especially for senior citizens who are looking for a retirement haven. Meanwhile, Lima, Peru's cosmopolitan capital, has become a city of significant hub for entrepreneurs and professionals from around the world.
Working people often move to urbanized areas like Lima and Arequipa and normally choose to live in corporate housing. Furthermore, there is a diverse range of options: single-family homes, high-rise apartment buildings, and smaller suburban housing. Finding a property to rent can be quite challenging, which is why our expert term is ready to help you find one that is closest to your most liking. There are plenty of good rental options available in the city's best neighborhoods.
Renting an apartment in Lima tends to be costly in comparison to other Peruvian cities, depending on the neighborhood and state of the property. Keep in mind that the rent is generally higher if the property comes with furniture, electronics, and kitchen appliances.
Premier Casa is at your service. Contact us for all your rental needs in Peru.
Rental Contract Term
According to Peruvian law, a maximum term of 10 years is established for all lease contracts. However, if the property is owned by the Peruvian state or an incapacitated citizen, the limit decreases to 6 years.
In regard to expired contracts, it is important to note that when the parties continue to act as if a contract were in force, this does not translate into a renewal of the contract on paper. Peruvian law merely considers this indeterminate contract to proceed under the same terms as the expired contract, until the tenant is requested to leave the premises by the landlord. By default, the tenant should receive a 1-month notice prior to the date of departure, and ask for the tenant to return the premises. Both parties are free to decide on a different notice period, as long as it is established in the contract.
These rules apply to either party when they wish to resolve a lease contract before the expiration of the contract: the resolving party must give prior notice of no less than 1 month, or on a mutually agreed timetable. It should be noted that neither party will incur in penalties upon resolution, unless established otherwise in the contract, which is not uncommon in case the tenant leaves before the term.
Property Improvements by the Tenant
Peruvian law stipulates that a landlord is obliged to reimburse the tenants for any necessary and useful improvements they have made to the property during the term of their contract. Necessary improvements are defined as an enhancement to the property, with the purpose of preventing any deterioration or damage. Useful improvements are not necessarily required but elevate the overall value of the premises.
Keep in mind that the term for a tenant to claim the imbursement of the necessary and/or useful improvements expires 2 months after having returned to the property.
Notwithstanding the positive nature of these improvements, it is important to receive the landlord's approval before making any changes to the property. Your landlord also has the right to contest whether they are under the obligation to reimburse you for improvements, depending on the nature of said improvements.
As soon as the contract ends, the tenant has to return the property to the owner unless otherwise agreed. In certain cases, where an eviction is necessary, the landlord will initiate legal action.
Generally, eviction lawsuits tend to drag on for several months in Peruvian courts. However, recently, a new regime was adopted by the government under the Legislative Decree N 1177.
Under this regime, the landlord can evict the tenant by means of a "Unique Procedure of Eviction", The eviction procedure as a whole is complicated and lengthy. It is crucial to seek the legal advice of an experienced lawyer to deal with eviction issues.
Finding a place to live in Peru can be a bit tricky considering the abundant options available, especially in large cities. It's best to consult a licensed expert to help you with your search and guide you through the rental procedure.
History of Peru
If you are a history buff, Peru will not disappoint you for its history is among the most enticing ones in all of South America.
Peru's history dates as far back as 3200 BC, with the Norte Chico civilization in Caral. However, Peru's best known era was that of the Inca Empire from the 13th-16th centuries. At its most glorious period, the empire occupied what is now Peru, Bolivia, Chile, Ecuador, and Argentina.
While modernity and globalization were the phenomena that dominated the rest of the "Old World" outside of the Inca Empire, the Incas remained isolated in the Andes mountains, solving common human problems using inspired ingenuity. According to Inca scholar Gordon F. McEwan, the Incas did not possess the use of wheeled vehicles, nor did have enough animals to ride or can draft animals that could pull wagons or plows. Although they were expert metallurgists, their knowledge of iron and steel was absent, making do with bronze for their tools and implements. The scholar also noted that there was no system of writing, which was fundamental to the administration of European kingdoms and empires as well as for the transmission of knowledge and civilization. Then again, these supposed disadvantages did not seem to hinder the Incas from constructing one of the greatest imperial states in human history.
In the 1500s, the land of Peru was forcefully occupied by the Spanish conquistadors. Consequently, it led to a war between the invaders and the Inca that lasted nearly a decade. While the Spanish had advanced military equipment and tactics, the Inca knew the land better than anyone, had mountain fortresses, and were no physically foreign to the high altitudes and strenuous conditions. However, in the end, the Spanish claimed the victory, mainly because of the foreign disease that they brought which the pure mountain immune systems of the Incas could not handle. The colonization resulted in the importation of the Spanish spoken and written, Spanish culture, and modern technology, which integrated with that of the Incas, forming the distinct Peruvian culture that we know today.
Facts about Peru
- The Culture is influenced by a unique fusion of Andean and Spanish traditions.
- In the mountains, there are still many Andean descendants, who live in farming villages at high altitudes making a living mainly by obtaining for themselves from the land.
- Coming down to lower elevations and the sea, Spanish influence is prevalent, with more metropolitan cities, like Lima, which resembles many of the big world capitals. Living in Peru means that you are up to experience the modernity weaving with shimmers of tradition on a daily basis.
- In Peru you will find amazing food for example chicken stews, guinea pig, choclo corn, and more than 4,000 types of potatoes native to the Andes).
- Tourist Visa: The tourist visa is the quickest and easiest document a U.S or Canadian citizen can obtain to enter Peru. Without applying for it at an embassy or consulate, upon arrival to the airport in Peru, you can achieve it, which takes as little time as stamping a passport. Entering the country via tourist visa in this manner is the method employed by most tourists and backpackers. You cannot work on this visa. Travelers can spend up to 183 days in Peru without needing to renew on this visa. At the end of this period, tourist visa holders will need to leave the country. Returning to Peru will renew the visa for another 183 days.
- Work Visa: A Peruvian working visa can be obtained by any foreigner who enters the country for multiple purposes with lucrative efforts that will boost the national economy. The work visa can be achieved either independently or as an employee. You will need an employment contract, and administrative relationship or services agreement. In order to work in Peru as a foreigner, you will need to apply for a work or business visa. The special visa is called "el Carné de extranjeria", which could be translated as "Foreign Resident ID Card". You will need to pay an initial fee of $200 US dollars and $20 US dollars a year. Depending on the status of your employer, a work visa is good for either 183 or 365 days, but can be renewed for the duration of the employment.
- Investor Visa: For those interested in moving to Peru with an investment plan in mind, there are fast-tracked ways to get residency if you have enough capital to make a sizeable investment. The main conditions for an investment visa include a proof of your capability of settling, developing, or managing single or multiple investments in Peru. The investment must be valued at a minimum of $154,000 USD.
- Retirement Visa: Retirement visa is one of the most favorable forms of residency for qualified applicants planning to move to Peru. The requirements to obtain a Retirement Visa include a permanent $1000 monthly income while living in the country, plus $500 for each dependent applying. Rentista Visa holders are exempt from paying annual resident taxes and Peruvian Income Tax. Retirees can also import possessions from home, tax and, duty-free.
- Dinner for two at a casual restaurant can be less than $8, $30 in a medium restaurant and groceries for a family of 2-3 can cost under $20 a week
- The landscape of Peru can be described with three main regions. The selva (jungle), covered by the Amazon rainforest, encompasses almost 60% of the country. The costa (coast) is an arid plain with valleys created by seasonal rivers located in the west. The sierra (highlands) comprises the Andes mountains and the highest point of the country, Huascarán Sur, at over 22,000 ft.
- The jungle regions typically have high temperatures (annual average around 88°F) and heavy rainfall. The coastal region, in contrast, feels more temperate and moderate with low rainfall but high humidity (average temperatures range 63-74°F annually). In the summer, the mountain regions have frequent rain, with humidity and temperature dropping as you ascend further up the Andes. Cusco, for example, at over 11,000 ft, has an average annual temperature of 52°F in the summer and 45°F in the winter.
Peru is characterized with a rich diversity of natural resources such as gold, natural gas, silver, petroleum, copper, iron, coal, potash, ore, and hydropower. In 2011, the country's GPD growth rate went to nearly 7% as private investment in the mining sector increased, which translated into a $305.8 billion GDP. This is because 60% of Peru's total exports relied on its mining sector, which contributed 8.8% to the GDP growth of country in 2010.
Needless to say, because of the abundant natural resources, the trading and exporting markets are huge for investment in Peru. Since 2000, there has been an average annual growth of 5.5% in the export of goods and services. Such positive increase is mostly due to Peru's favorable international trade conditions.
Peru Investment Visa
You will need an investment visa if you wish to establish a financial footprint in Peru. The key requirement to obtain this stamp on your passport is that the investor must develop or establish a business; or purchase property in the value of $154,000 USD. This legislation is subject to change so make sure you keep yourself posted with the current policy.
If you are investing in a business in Peru, the investment must be made directly from a bank account in the name of the investor in a single-sum bank transfer, the amount of which must be at least $30,000 USD. The investor must also submit a business plan approved by a Peruvian economist and he/she must also employ a minimum of five Peruvian citizens within the first year of business.
Peru Investor Visa investment lasts for one year and can be extended continuously, as long as all requirements are still being met. An advantage Peru investment visa provides is legal residency. Note that the visa holder must be in the country for no less than 183 days of the calendar year. As this is an investment visa and not a working visa, the visa holder is not allowed to work directly in Peru but serves strictly as an investor.
Real Estate Market
The Peruvian real estate sector is an important and growing business sector. Lima, the capital city, has a high potential real estate market because of a high housing demand and higher living standards.
Peru real estate market can be very profitable to a U.S, Canadian, or European investor due to the affordable cost of living in the country, and favorable currency exchange rate.
In Lima, the country's most expensive city, sale-to-rent price ratios in are comparatively higher than other similar markets, meaning profits tend be greater here than in many other Latin American countries. Depending on the property type and location, the price varies. Residential city-center apartments for sale list prices are considerably higher than similar properties just outside of the city's center. Depending on the property type, the price varies.
When it comes to property rentals, you can expect rented 1-bedroom furnished apartments in a beautiful building in Miraflores to go around $1,400 a month (another nice 1-bedroom furnished apartment two blocks away from Barranco Main Square for $650). These options are designed for residential long-term clients.
Before making any investment abroad, it is crucial to understand the political situation of that country. Knowing that the country is safe and stable will give you a peace of mind and assurance about your investment.
Peru is a presidential representative democratic republic with a multi-party system. A presidential term is 5 year and cannot be extended consecutively. The Peruvian government is directly elected and voting is mandatory, meaning there are fines for not doing so, for all Peruvians from the age of 18 to 70. The country is a member of the World Trade Organizations, APEC, along with the Andean Community of Nations, as well as the United Nations.
The Global Peace Index ranked Peru 71 out of 163 countries for overall peace and safety. Before making any investment abroad, it is crucial to understand the political situation of that country. Knowing that the country is safe and stable will give you a peace of mind and assurance about your investment.