Peru Property Tax Guide
Peru imposes a progressive annual property tax (Impuesto Predial) at rates from 0.2% to 1% of the cadastral value, a one-time transfer tax (Alcabala) of 3% on the portion of the purchase price exceeding 10 UIT, and capital gains tax of up to 30% on property sales. Property tax is collected by municipal governments. All amounts in PEN.
Peru's property tax system is administered at the municipal level (Impuesto Predial) and the national level (Alcabala, capital gains). For related guidance, see our Capital Gains Guide →, Investment Income Guide →, and Personal Tax Guide →.
Impuesto Predial — Annual Municipal Property Tax
- Impuesto Predial is an annual tax levied by each district municipality (municipalidad distrital) on the ownership of real estate (land and buildings).
- Tax base: The cadastral value (autovalúo) of the property, determined by the municipality based on official land and construction values. Cadastral values are typically well below market value.
- Progressive rates:
- 0.2% — on the first 15 UIT of cadastral value (up to PEN 80,250)
- 0.6% — on the portion from 15 UIT to 60 UIT (PEN 80,251 to PEN 321,000)
- 1.0% — on the portion exceeding 60 UIT (above PEN 321,000)
- Payment: Due annually, typically by the last business day of February. Payment in instalments (quarterly) is available in most municipalities.
- Exemptions: Properties owned by the state, religious institutions, educational and cultural non-profits, and diplomatic missions. Pensioners may qualify for a discount on the first 50 UIT of cadastral value.
Alcabala — Real Estate Transfer Tax
- Alcabala is a one-time transfer tax payable by the buyer upon the acquisition of real estate.
- Rate: 3% on the portion of the purchase price that exceeds 10 UIT (PEN 53,500). The first 10 UIT of the purchase price is exempt.
- Example: A property purchased for PEN 300,000 — Alcabala is 3% × (PEN 300,000 − PEN 53,500) = PEN 7,395.
- Due date: Within 30 days of the transfer deed (escritura pública). The buyer files the return with the municipality where the property is located.
- Exemptions: First-time home buyers (for properties up to 25 UIT / PEN 133,750), transfers between spouses, inheritances, and properties acquired through public auction.
Capital Gains on Property Sales
- Gains from the sale of real estate are subject to capital gains tax under the Impuesto a la Renta. See the Capital Gains Guide for full details.
- The gain is calculated as the sale price minus the adjusted cost basis (purchase price plus improvements, indexed for inflation).
- Rates: 5% on gains up to 3 UIT (PEN 16,050), then progressive at IIT rates (8–30%) on the excess. No distinction between short-term and long-term holding periods.
- Primary residence exemption: Gains from the sale of the taxpayer's primary residence may be exempt if the proceeds are reinvested in a new primary residence within 12 months.