Inheritance Law in Peru

Answers to your qestions about moving to, and living in, Peru,
User avatar
adrian Thorne
Gold Member
Gold Member
Posts: 1134
Joined: Fri Aug 03, 2007 1:29 am
Location: Sol De La Molina

Inheritance Law in Peru

Postby adrian Thorne » Thu Jul 08, 2010 5:45 pm

My wife and I purchased our home In La Molina some three years ago, using my personal savings from the UK. The property is in joint names and I believed the property would automatically transfer to me. I now understand that if my wife should die, her daughter by a previous marriage has a claim on the property. I am also told this sum is as much as 25%, being the only daughter. If this is the case I would not have sufficient savings to cover this claim and may be forced to sell the property to satisfy the claim. Has any other expat had experience of this worrying situation.


User avatar
mammalu
Gold Member
Gold Member
Posts: 2251
Joined: Fri Sep 30, 2005 1:46 pm
Location: NJ, USA

Re: Inheritance Law in Peru

Postby mammalu » Thu Jul 08, 2010 6:37 pm

I don't know how the sale was set up, but if you bought as husband and wife, you should get it. When my mother passed away in Peru, my father automatically inherited everything (house, joint accounts, retirement benefits from Horizonte). Not us the children, but the living spouse.

Please talk to a lawyer who can review also your papers (deed of the house, etc.). Maybe if you go to the Peruvian embassy in the UK, you can pay for a lawyer there to review the deed.

Good Luck,
Stand with anybody that stands RIGHT. Stand with him while he is right and PART with him when he goes wrong." ! Abraham Lincoln
User avatar
sunflower
Gold Member
Gold Member
Posts: 840
Joined: Sun Oct 22, 2006 10:41 pm
Location: Cancun

Re: Inheritance Law in Peru

Postby sunflower » Fri Jul 09, 2010 2:47 pm

I would highly recommend having a conversation with a good lawyer!

As far as I was told the situation is the following: if the husband or wife dies, the other one automatically inherits 50%. The other 50% are equally divided under the children. This way it happened with the house we have rented. It belonged to a married couple. When the wife died last year, the husband got 50% of the house, the other 50% belong now in equal parts to the 4 children.

Eva
User avatar
sunflower
Gold Member
Gold Member
Posts: 840
Joined: Sun Oct 22, 2006 10:41 pm
Location: Cancun

Re: Inheritance Law in Peru

Postby sunflower » Fri Jul 09, 2010 3:15 pm

It just caught my eye that my comment might be misleading. A house belongs to husband and wife together. the 100% belong to 50% to the husband and to 50% to the wife. If the wife dies, the husband keeps his 50% and inherits another 50% from his wife 50% (he inherits 25%) and has now 75%, the other 50% of his wife's 50% (25%) is divided between the children. That's the Peruvian law.

Probably there are loopholes or things are different when there is a will or a special contract, therefore see a lawyer you can trust.

Eva
User avatar
americorps
Gold Member
Gold Member
Posts: 3841
Joined: Tue Dec 12, 2006 4:16 pm
Location: Lima

Re: Inheritance Law in Peru

Postby americorps » Fri Jul 09, 2010 4:28 pm

My understanding is exactly the same as sunflower´s
Abundancia
Member
Member
Posts: 9
Joined: Sat Jul 10, 2010 10:23 am

Re: Inheritance Law in Peru

Postby Abundancia » Sat Jul 10, 2010 8:20 pm

But if you have a will it is followed as written, correct??? As I now live in Iquitos, my lawyer in US when I just drew up my will, stated I need to do another one here probably. Any6 recommendations for a Honest lawyer near here. I already had a bad experience. English speaking prefered but honest is at the top of the list. I also have a few business legal questions but will start a new thread, correct me that is the way it is done , Si?
User avatar
americorps
Gold Member
Gold Member
Posts: 3841
Joined: Tue Dec 12, 2006 4:16 pm
Location: Lima

Re: Inheritance Law in Peru

Postby americorps » Sat Jul 10, 2010 8:37 pm

Generally, no. Even with a will, the law trumps the will unless ALL family members sign the will, and even then if they contest, they will have a good chance.
User avatar
mammalu
Gold Member
Gold Member
Posts: 2251
Joined: Fri Sep 30, 2005 1:46 pm
Location: NJ, USA

Re: Inheritance Law in Peru

Postby mammalu » Sat Jul 10, 2010 9:16 pm

Would a Will change the way properties are inherited; sort of a Joint survivorship?

I would like to buy eventually some Real estate with my husaband in Peru; but if something happens to any of us, we would like the surviving spouse to get everything (my children do not live in Peru).
Stand with anybody that stands RIGHT. Stand with him while he is right and PART with him when he goes wrong." ! Abraham Lincoln
User avatar
adrian Thorne
Gold Member
Gold Member
Posts: 1134
Joined: Fri Aug 03, 2007 1:29 am
Location: Sol De La Molina

Re: Inheritance Law in Peru

Postby adrian Thorne » Sun Jul 11, 2010 6:44 am

Thank you all for your comments. I have spoken with a lawyer who´s interpretation of the law is as follows. If the property was purchased in joint names the surviving partner retains their 50% and may continue to live in the property for the rest of their natural life. However if they decide to sale the 50% owned by the deceased is divided between the children and surviving spouse in equal proportions. A will has little or no value here, as the rights of dependents are protected. I have two children born in The UK and they are not eligible to claim. My step daughter born in Peru benefits from either of our deaths.
If a dependent is in financial need prior to the death of a parent they can receive payment in advance, by signing a waver document against any further claim. But beware this has been successfully challenged in court, when they discover the final value of the estate can be far higher than the original sum paid.
Ruud
Gold Member
Gold Member
Posts: 183
Joined: Tue Jul 10, 2007 6:40 pm
Location: Tarapoto

Re: Inheritance Law in Peru

Postby Ruud » Mon Jul 12, 2010 11:48 pm

Maybe the following is not relevant in your case, but can be in other cases.

It also might depend on what conditions you are married. The default of Peruvian marriage law can be different from your home country.

As a lawyer explained to me, the default is that goods and money the partners own before the marriage, stay their property within their marriage. What you collect within the marriage is shared.
He even went so far explaining that when you buy a house within the marriage with money from one spouse that he/she had before the marriage, you can dispute who actually is the owner.

If you want that goods and money that are earned within the marriage stay with the earner, you can make "Una Seperación de Patrimonios", also called "Una Seperación de los Bienes" at a notario. The acta has to be made and registered before the marriage.
Ruud
Gold Member
Gold Member
Posts: 183
Joined: Tue Jul 10, 2007 6:40 pm
Location: Tarapoto

Re: Inheritance Law in Peru

Postby Ruud » Tue Jul 13, 2010 12:10 pm

Adrian if it gives you peace of mind, you mind consider to put the property on your sole name. Of course your wife has to cooperate...
Talk to a lawyer how this can be done without it being a compra - vendo.


adrian Thorne wrote:My wife and I purchased our home In La Molina some three years ago, using my personal savings from the UK. The property is in joint names and I believed the property would automatically transfer to me. I now understand that if my wife should die, her daughter by a previous marriage has a claim on the property. I am also told this sum is as much as 25%, being the only daughter. If this is the case I would not have sufficient savings to cover this claim and may be forced to sell the property to satisfy the claim. Has any other expat had experience of this worrying situation.
User avatar
caliguy
Gold Member
Gold Member
Posts: 1210
Joined: Tue Jan 10, 2012 3:55 pm
Location: Lima-13

Re: Inheritance Law in Peru

Postby caliguy » Thu Jul 28, 2016 7:50 pm

i'm in a similar situation, although no children/dependents are involved. would this mean that i would get 100% of all assets here in Peru? would i have to pay any capital gains taxes on real estate? obviously i'll have to hire a lawyer to help out.
every place has it's own spirit. you just need to tune into it.
User avatar
fanning
Gold Member
Gold Member
Posts: 1418
Joined: Sun Aug 17, 2008 8:01 pm
Location: Lima

Re: Inheritance Law in Peru

Postby fanning » Thu Jul 28, 2016 11:28 pm

You pay 5% over the 'profit'. For acquirements after 2012 it really matters how much you actually paid for the real estate, if you got it through inheritance you 'bought' it for ZERO soles, so you pay 5% over the selling amount. You only pay when you sell, not when you get it by inheritance. ( as a rule of thumb ofcourse, consult a lawyer when you actually sell ! )
The 5% is only if you are a tax resident, else it is 30%.
User avatar
caliguy
Gold Member
Gold Member
Posts: 1210
Joined: Tue Jan 10, 2012 3:55 pm
Location: Lima-13

Re: Inheritance Law in Peru

Postby caliguy » Fri Jul 29, 2016 9:05 am

fanning wrote:The 5% is only if you are a tax resident, else it is 30%.

thank you fanning. the wife and i purchased the property in 2005. it looks as though i'll be paying the 30%.
every place has it's own spirit. you just need to tune into it.
User avatar
fanning
Gold Member
Gold Member
Posts: 1418
Joined: Sun Aug 17, 2008 8:01 pm
Location: Lima

Re: Inheritance Law in Peru

Postby fanning » Fri Jul 29, 2016 1:35 pm

I think if it is your primary residence you don't pay the impuesto, but I am not sure of that, and you need to actually live there.
If you are liable for the impuesto and acquired it after 2002 or 2004 the 'autovalue' is your 'buying' price, corrected by a table on the ministry of economy. http://www.mef.gob.pe/index.php?option=com_content&view=article&id=296&Itemid=100244&lang=es

Check out your options. 30% over hundreds of thousands of dollars, is a lot more than 5%, and not paying the tax is even a lot more savings.
The notary where you do the sale will check everything out, because if you don't pay the tax ( when you have to ) the notary won't even pass the compra-venta.
krisserlis
Silver Member
Silver Member
Posts: 29
Joined: Mon Apr 05, 2010 10:58 pm

Re: Inheritance Law in Peru

Postby krisserlis » Tue Oct 11, 2016 2:26 am

I am wondering about inheritance in the following situation. I met my husband when I was living and working in Peru in the late 1980s. We moved to Australia in 1990 but before we left Peru, we bought a house for my husband's family. I paid most of the price, but the paperwork - such as it was ended up in just my husband's name. This did not bother me at the time as I wasn't thinking about inheritance complications. The house was bought for his extended family. A few years ago, after several years of tramites, we finally managed to get the title of the house registered. It ended up being registered in my husband's name as owner - fine - but it says he's "soltero", which obviously he is not!

We have two grown daughters who have little interest in owning the house in Peru, however we are not sure what will happen when my husband dies. He has 9 brothers and sisters. If we were to turn it over to one of them, then it seems their children would inherit whereas we want to keep it as an asset for all his family. I thought perhaps it would be better for our daughters to inherit, because then they can administer/arbitrate over who lives in the house and for how long etc. (They are Peruvian citizens but do not live there).

My husband's parents are very elderly and when they are gone, the house will be up for grabs. Up till now the family have deferred to my husband to arbitrate, but when he is gone I am unsure what will happen. I assume because I am not a co-owner that I will be out of the picture. Given the length of time it takes to get any tramites done in Peru, we would like to start thinking and planning for future eventualities. My husband is a dual Peruvian/Australian citizen. I do not have Peruvian citizenship.
User avatar
Alan
Gold Member
Gold Member
Posts: 2852
Joined: Tue Sep 27, 2005 5:10 pm
Contact:

Re: Inheritance Law in Peru

Postby Alan » Tue Oct 11, 2016 12:07 pm

Krisserlis, My understanding is that the house will default to your daughters when your husband dies (my, that sounds harsh), so that seems to solve the issue. Now, the other issue is who will be living in the house at that time, and whether or not they want to respect your daughters wishes.The tenancy laws here are very complicated and people who are living in a residence, with no contract, are given a lot of rights under the law. It can take months or years to evict. Possibly things are all fine and good now, but feelings and realities can change, so I think the best advice is to speak to a lawyer in Peru. Forewarned is forearmed.
User avatar
caliguy
Gold Member
Gold Member
Posts: 1210
Joined: Tue Jan 10, 2012 3:55 pm
Location: Lima-13

Re: Inheritance Law in Peru

Postby caliguy » Tue Oct 11, 2016 3:13 pm

fanning wrote:I think if it is your primary residence you don't pay the impuesto, but I am not sure of that, and you need to actually live there.
If you are liable for the impuesto and acquired it after 2002 or 2004 the 'autovalue' is your 'buying' price, corrected by a table on the ministry of economy. http://www.mef.gob.pe/index.php?option=com_content&view=article&id=296&Itemid=100244&lang=es

Check out your options. 30% over hundreds of thousands of dollars, is a lot more than 5%, and not paying the tax is even a lot more savings.
The notary where you do the sale will check everything out, because if you don't pay the tax ( when you have to ) the notary won't even pass the compra-venta.

thank you again fanning :D . it is not our primary residence. it is a 350 sq. meter locale which we us to warehouse machinery. if i remember correctly, we bought it in 2010 for $100,000. cash. i assume the value now is in the neighborhood of 300-400k. i clicked on the link you provided, and translated to english, but still couldn't figure it out.
every place has it's own spirit. you just need to tune into it.
User avatar
fanning
Gold Member
Gold Member
Posts: 1418
Joined: Sun Aug 17, 2008 8:01 pm
Location: Lima

Re: Inheritance Law in Peru

Postby fanning » Tue Oct 11, 2016 8:08 pm

The link is used to figure out the 'buying' price in case you got the property through inheritance. ( Which is the title of the topic ).

To explain that detail a bit further: Suppose the autovalue of 2010 was S/. 100.000 ( The autovalue is always lower than the actual value and you can find it on your municipal tax form of 2010) and you got the property through inheritance in june 2010. Then the adjusted autovalue according to the table NOW, is a factor 1.15.
This means the ficticious 'buying' price is S/. 115000.
If you sell the property now for S/. 1.000.000 your profit over which you pay taxes is S/. 1.000.000 - S/.115.000 = S/.885.000
If you are a resident you pay 5% over this amount (S/.44250) , if you are a non-resident you pay 30% over this amount (S/. 265.500)

In your case you bought it for US$ 100.000 so there is no fictious 'buying' price, but just the actual buying price ..
So in your case , if you sell for US$ 400.000 you have US$ 300.000 profit, and pay US$90.000 taxes.
User avatar
caliguy
Gold Member
Gold Member
Posts: 1210
Joined: Tue Jan 10, 2012 3:55 pm
Location: Lima-13

Re: Inheritance Law in Peru

Postby caliguy » Wed Oct 12, 2016 11:59 am

fanning wrote:


In your case you bought it for US$ 100.000 so there is no fictious 'buying' price, but just the actual buying price ..
So in your case , if you sell for US$ 400.000 you have US$ 300.000 profit, and pay US$90.000 taxes.

wow! thanks again fanning. :D
every place has it's own spirit. you just need to tune into it.
krisserlis
Silver Member
Silver Member
Posts: 29
Joined: Mon Apr 05, 2010 10:58 pm

Re: Inheritance Law in Peru

Postby krisserlis » Sat Feb 18, 2017 6:42 am

Alan wrote:Krisserlis, My understanding is that the house will default to your daughters when your husband dies (my, that sounds harsh), so that seems to solve the issue. Now, the other issue is who will be living in the house at that time, and whether or not they want to respect your daughters wishes.The tenancy laws here are very complicated and people who are living in a residence, with no contract, are given a lot of rights under the law. It can take months or years to evict. Possibly things are all fine and good now, but feelings and realities can change, so I think the best advice is to speak to a lawyer in Peru. Forewarned is forearmed.


Hi Alan

Many thanks for your reply. Apologies that it has taken me so long to see it! I suspected that my daughters would inherit and that is fine with me, although it will burden them with a whole host of problems! We bought the house originally so my mother-in-law would have stable housing as my father-in-law is alcoholic and spendthrift. My inlaws lived there for many years with various of their children but my mother-in-law finally left to live with one of her daughters. My father-in-law stayed in the house with another son and his family who are supposed to be caring for him. When my father-in-law dies, we will then be faced with the issue of fairness to other siblings who haven't benefited from living in the house at a low rent. That's where the problems for my daughters will arise - squabbles among the family as to who gets to live in the house, for how long and at what rent. Currently the rent goes to support my mother and father in law. Hopefully my husband will stay alive long enough to negotiate some agreement between his brothers and sisters about sharing the house. No doubt I will be peacefully dead by then, ha ha!! But we will take your advice and speak to a lawyer. We plan to make a final visit (for me) to Peru next year and stay 6 months to sort out this and other issues.

Thanks again

Kristin
andyboi
Member
Member
Posts: 4
Joined: Mon Dec 03, 2007 8:59 pm

Re: Inheritance Law in Peru

Postby andyboi » Fri Oct 20, 2017 2:52 pm

Hello everyone,
I was just browsing and saw the 5% vs 30% for a non-resident. This might be a stupid question, but If someone has a Peruvian passport (dual citizen but does not live in Peru), would they be charged the 30% taxation (and be considered non-resident)?
Thank you,
W

fanning wrote:The link is used to figure out the 'buying' price in case you got the property through inheritance. ( Which is the title of the topic ).

To explain that detail a bit further: Suppose the autovalue of 2010 was S/. 100.000 ( The autovalue is always lower than the actual value and you can find it on your municipal tax form of 2010) and you got the property through inheritance in june 2010. Then the adjusted autovalue according to the table NOW, is a factor 1.15.
This means the ficticious 'buying' price is S/. 115000.
If you sell the property now for S/. 1.000.000 your profit over which you pay taxes is S/. 1.000.000 - S/.115.000 = S/.885.000
If you are a resident you pay 5% over this amount (S/.44250) , if you are a non-resident you pay 30% over this amount (S/. 265.500)

In your case you bought it for US$ 100.000 so there is no fictious 'buying' price, but just the actual buying price ..
So in your case , if you sell for US$ 400.000 you have US$ 300.000 profit, and pay US$90.000 taxes.
User avatar
Alan
Gold Member
Gold Member
Posts: 2852
Joined: Tue Sep 27, 2005 5:10 pm
Contact:

Re: Inheritance Law in Peru

Postby Alan » Fri Oct 20, 2017 6:39 pm

andyboi wrote:Hello everyone,
I was just browsing and saw the 5% vs 30% for a non-resident. This might be a stupid question, but If someone has a Peruvian passport (dual citizen but does not live in Peru), would they be charged the 30% taxation (and be considered non-resident)?
Thank you,
W


Yes, that is correct. They would be charged.
andyboi
Member
Member
Posts: 4
Joined: Mon Dec 03, 2007 8:59 pm

Re: Inheritance Law in Peru

Postby andyboi » Sun Nov 05, 2017 1:47 pm

Thanks!

Alan wrote:
andyboi wrote:Hello everyone,
I was just browsing and saw the 5% vs 30% for a non-resident. This might be a stupid question, but If someone has a Peruvian passport (dual citizen but does not live in Peru), would they be charged the 30% taxation (and be considered non-resident)?
Thank you,
W


Yes, that is correct. They would be charged.
User avatar
atpe
Member
Member
Posts: 19
Joined: Sat Mar 17, 2018 8:14 am

Re: Inheritance Law in Peru

Postby atpe » Tue Mar 27, 2018 3:52 pm

sunflower wrote:I would highly recommend having a conversation with a good lawyer!
As far as I was told the situation is the following: if the husband or wife dies, the other one automatically inherits 50%. The other 50% are equally divided under the children.
Eva
my cousin had it that way. need a good lawyer

Return to “Expat Information”

Login  •  Register