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Peru Inheritance and Gift Tax Guide

Peru abolished its inheritance tax in 2004. There is no inheritance tax on any amount inherited, regardless of the relationship or size of the estate. Gift tax applies only to transfers between non-qualifying parties — gifts between spouses, lineal ascendants (parents, grandparents), and lineal descendants (children, grandchildren) are exempt. Gifts to other recipients are treated as income of the recipient and taxed at progressive IIT rates (8–30%). All amounts in PEN.

Peru's tax treatment of inheritances and gifts is among the most favourable in Latin America. The complete absence of inheritance tax and the broad gift exemptions for close family make Peru a tax-efficient jurisdiction for wealth transfers. For related guidance, see our Wealth Tax Guide →, Property Tax Guide →, and Investment Income Guide →.

No Inheritance Tax (Abolished 2004)

  • Peru's inheritance tax (Impuesto a la Herencia) was abolished by Law No. 28298 on 22 July 2004. Since then, no tax has been levied on the transfer of assets upon death, regardless of the amount or the relationship to the deceased.
  • What this means: Beneficiaries receive inherited assets (cash, real estate, securities, business interests) completely free of tax. There is no estate tax return to file, no inheritance tax assessment, and no reporting obligation to SUNAT.
  • Property transfers: While there is no inheritance tax, the transfer of real estate through inheritance triggers municipal registration fees (typically 0.5–1% of cadastral value) and notarial costs. The land registry (SUNARP) charges a registry fee, but this is not a tax.
  • Capital gains upon inheritance: When the beneficiary later sells inherited property, the cost basis is the fair market value at the date of death (for IIT purposes), so no tax is due on appreciation that occurred before the inheritance.

Gift Tax — Exempt for Close Family

  • Exempt recipients: The following gifts are exempt from any tax in Peru:
    • Gifts between spouses (cónyuges)
    • Gifts from lineal ascendants to descendants (parents to children, grandparents to grandchildren, and vice versa)
    • Gifts between siblings, uncles/aunts, and other collateral relatives do not qualify for the exemption and may be taxable to the recipient.
  • No limit on exempt amount: The exemption for gifts between spouses and lineal relatives is unlimited — there is no annual cap or lifetime limit. A parent can gift PEN 1 million to a child with zero tax consequences.
  • Reporting: Exempt gifts do not need to be reported to SUNAT. However, if the gift involves real estate, the transfer deed (escritura pública) must be registered with SUNARP, and the municipality may charge Alcabala (3% on purchase price exceeding 10 UIT) unless the property qualifies for the transfer tax exemption.

Taxable Gifts — IIT Rates (8–30%)

  • Non-exempt recipients: Gifts to recipients who are not spouses or lineal ascendants/descendants are treated as income of the recipient and subject to the progressive IIT rates (8% to 30%).
  • Examples of taxable gifts: Gifts to siblings, cousins, friends, business partners, or unrelated third parties. The fair market value of the gifted asset is included in the recipient's annual IIT return as miscellaneous income.
  • Tax calculation: The gift value is added to the recipient's other income for the year and taxed at the marginal IIT bracket. This means the effective rate depends on the recipient's total income, not just the gift amount.
  • Gift from companies: Gifts from a company to an individual are treated as employment income (Fifth Category) and subject to withholding at progressive rates. Companies cannot deduct gifts as business expenses.

Practical Considerations

  • Life insurance: Life insurance proceeds paid to named beneficiaries on the death of the insured are tax-free in Peru, consistent with the absence of inheritance tax.
  • Estate planning: The tax-free transfer of wealth to heirs makes Peru attractive for high-net-worth individuals. Common strategies include lifetime gifts to children (tax-free) and holding assets through Peruvian companies.
  • Foreign inheritances: If a Peruvian resident inherits assets from abroad (e.g., from a parent residing in a country with inheritance tax), Peru does not impose its own inheritance tax on the receipt. Any foreign inheritance tax paid may not be creditable against Peruvian IIT, as there is no inheritance tax to offset.
  • Real estate transfers: While inheritances and qualifying gifts are exempt from income tax, the Alcabala (3% transfer tax) may still apply when real estate is transferred by gift, unless the recipient qualifies as a close family member and the property is within the exemption limits.