Peru » The Purchase Process

As of the last decade, the Peruvian government adopted measures to nurture and support private investments, whether national or foreign, in a joint or separate manner. One such measure is the spread of the Law for the Promotion of Foreign Investment, which grants equal treatment to local and foreign investors, orchestrating foreign investments assurance mechanisms.

The object of this Law is to have assurance free plan and private assets in all economic actions and under any corporate or contractual form certified by law. Likewise, it creates rights, guaranties and obligations applicable to all national or foreign individuals or enterprises investing in the country.

The Law for the endorsement of Foreign Investment guarantees:

Free initiative and private investment in all economic activities and under any corporate or contract form as authorised by the Constitution and pursuant to law.

Equally applicable rights and obligations to both national and foreign investors and to the companies in which they invest.

• Foreign investment's automatic authorisation.
• Property rights of foreign investors, subject to no further limits except those stipulated in the Political Constitution:

Within fifty kilometres off the country's borders, foreign individuals and enterprises shall not be authorised to obtain concessions and rights in relation to energy sources, whether directly or indirectly, as individuals or as societies, under penalty of losing, in benefit of the State, the right granted, with no other exceptions than those established by law because of national security (Article 126 of the Political Constitution of Peru).

Equal applicable intellectual and industrial property rights to both national and foreign investors.

• Right of freedom for enterprise and industry and the right of freedom for foreign and for domestic trade to foreign investors.
• Right to remit abroad in freely convertible currency, without requiring beforehand, for this purpose, an authorisation to foreign investors.
• Right to purchase shares, participations or rights owned by national or sub-regional investors to foreign investors.
• Right to converted foreign currency into national currency to foreign investors.
• Right to use the most favourable purchase rate exchange to make such exchange operation to foreign investors.
• Right to carry insurance, inside and outside the country, to protect  their investment against commercial and non-commercial risk.
• Law stability.

Obtaining local legal counsel is highly recommended for doing business in Peru. Potential investors should contact an attorney to understand the legal framework for investments found in the Foreign Investment Promotion Law, the Framework Law for Private Investment, the Law for the Promotion of Private Investment in State-Owned Companies, and the Law for the Promotion of Private Investment in Public Utility Facilities.

Non-citizens of Peru can buy real estate with no formal approval from the Peruvian government needed as long as such property is not situated near Peru’s borders.

Once a buyer has decided upon a property, the first step is to get a copy of the notarized deed (escritua) of the property from the Public Registry. It is imperative to check the Declaratoria de Fabrica to ensure that both the land and building constructed on it are registered.

The next step is to obtain a Property Register Certificate (CRI, Certificado Registral Inmobiliario) from the Property Register. This certificate verifies the existence and description of the property, the identity of the present owner and information about the title of the property.

The next step is to get the Sale-Purchase Agreement (minuta) executed by the Notary Public (Notario Público) and then to register the property. Next pay the Transfer Tax (Impuesto de Alcabala) at the Tax Service Administration (Servicio de Administración Tributaria).

The Notary then prepares the official Sale-Purchase Agreement after receiving receipt of the payment of transfer tax and municipal taxes. The final procedure is to file the Public Deed for registration with the Property Register.