Tax change for non-domiciled property owners

[Alan]

If you own property in Peru, but do not reside here, here is some good news for you if you decide to sell.

The Peruvian government has reduced the capital gains tax applied to the sale of real estate for non-domiciled property owners from 30% to 5%. According to the Legislative Decree N°1258 published on December 8th in the “El Peruano” newspaper, the new rules will take effect beginning on January 1st, 2017. The new rules apply to “personas naturales”, or in other words, individual owners, not corporations.

[Alpineprince]

And what is the rate for those of us who are residents?

[Lloyd007]

If you have one property, then I believe it is 0%. At least, is one when I sold a few years ago. However, it may have changed - but I don't think so.

There are taxes applicable if you own more than one property, but don't remember how much.

[Alan]

If you have one property, then I believe it is 0%. At least, is one when I sold a few years ago. However, it may have changed - but I don't think so.

There are taxes applicable if you own more than one property, but don't remember how much.

That's right. You were allowed to sell up to three properties in a year,upon which point you were hit by a tax since the government assumed that you were a company as opposed to a simple investor. If memory serves, the tax was also %30. I haven't heard of that changing.

If you are domiciled, and are selling up to three properties, you would pay a 5% tax on capital gains (positive difference between purchase and sale price). However, if you have owned the property since before Jan. 01 2004, you are exonerated from this tax.

The buyers, on their end, get hit with the alcabala tax, which is 3% on the amount of the purchase above a deductible of 10 UIT (S./39,500).

The seller has the obligation of paying the municipal taxes for the entire year.