Peru – Property Taxes

Property Tax

• Property tax in Peru is known as Impuesto Predial and is levied annually on the value of the property.
• The tax is calculated based on the official value of the property determined by the government, which is usually lower than the market value.
• The tax rate ranges from 0.2% to 0.5% of the property value.

Capital Gains Tax (CGT)

• Capital gains tax in Peru is imposed on the sale of property.
• The tax rate is 30% on the gain made from the sale of the property.
• CGT is calculated as the difference between the purchase price and the sale price of the property.

Inheritance Tax

• Inheritance tax in Peru is known as Impuesto a la Sucesión and is levied on the transfer of property through inheritance.
• The tax rate varies based on the relationship between the deceased and the heir, with rates ranging from 0% to 10%.
• There is no inheritance tax for direct descendants, but there is a tax for more distant relatives.

Gift Tax

• Gift tax in Peru is known as Impuesto a la Donación and is levied on gifts of property.
• The tax rate ranges from 0% to 10%, depending on the relationship between the giver and the recipient.
• There is no gift tax for direct descendants, but there is a tax for more distant relatives.

Tax on Property Income

• In Peru, rental income from properties is taxed as part of the owner’s overall income.
• The tax rate ranges from 0% to 28% based on the rental income.

Tax Advantages in Buying a House in Peru

• In Peru, there are tax exemptions for individuals who purchase their first home.
• The exemption applies to the first 200,000 Peruvian soles of the purchase price, and the tax rate for the remaining amount is reduced.
• This tax advantage can result in significant savings for first-time homebuyers.