Taxes

Taxes in Peru

Peru's tax system is relatively straightforward compared to many Latin American countries, with some notable benefits for retirees.

Tax Residency

You become a Peruvian tax resident (domiciled) if:

• You spend 183+ days in Peru within any 12-month period
• Residency effects begin the FOLLOWING year

Key distinction:

• Residents (domiciled): Taxed on worldwide income
• Non-residents (non-domiciled): Taxed only on Peruvian-source income at flat 30%

Tax Rates for Residents (2026)

Progressive rates based on UIT (Unidad Impositiva Tributaria):

1 UIT = 5,500 PEN (~$1,450 USD) for 2026

Important: The first 7 UIT (~$10,150 USD) of annual income are exempt from tax.

Tax Exemptions & Benefits

Rentista visa holders:

• Pension income from personal work (government/private pensions) is EXEMPT from Peruvian income tax
• May also be exempt from annual foreigner tax (tasa anual de extranjeria)
• Exempt from import duties on personal and domestic items brought to Peru

No wealth-related taxes:

• No wealth tax
• No gift tax
• No inheritance tax
• These make Peru attractive for high-net-worth individuals

Capital gains:

• Stocks and securities: 5-6.25% flat rate
• Property: May be exempt under certain conditions

Important Taxes

Income Tax (Impuesto a la Renta):

Annual filing required if above thresholds. Tax year is calendar year. Filing deadline: first three months of following year, with specific dates set by SUNAT annually based on RUC number.

IGV (VAT):

18% on most goods and services (16% national + 2% municipal). Already included in prices.

Property Tax (Impuesto Predial):

0.2%-1% annually depending on property value. Relatively low.

Transaction Tax (ITF):

0.005% on all bank deposits and withdrawals.

Digital Nomads and Taxes

The situation:

• No specific digital nomad tax regime yet
• After 183 days, you become a tax resident (effective following year)
• Must then report worldwide income including remote work earnings
• Tourist visa holders technically not domiciled for tax purposes

Strategies (consult professional):

• Stay under 183 days to avoid tax residency
• Use Rentista visa if qualifying - pension income is tax-exempt
• Document all income sources carefully
• Understand home country tax obligations simultaneously

Getting a RUC

RUC (Registro Unico de Contribuyentes) is Peru's tax ID number.

Required for:

• Filing taxes
• Opening business accounts
• Issuing invoices
• Receiving formal Peruvian income

How to obtain:

Register at SUNAT offices with passport or carné de extranjería.

Professional Help

Recommended for:

• Anyone with international income
• Digital nomads staying 6+ months
• Business investors
• Property owners

Cost:

• Peruvian accountant (contador): $50-150/month
• Tax advisory firms: Higher but more comprehensive
• Many firms work with expats and understand international situations

US-Peru Tax Considerations

No tax treaty between US and Peru. American expats can use:

• Foreign Earned Income Exclusion (FEIE)
• Foreign Tax Credit (FTC)
• FBAR reporting if accounts exceed $10,000