HELP! Real Estate Tax Question

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PeruFan
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HELP! Real Estate Tax Question

Postby PeruFan » Wed Oct 10, 2018 7:02 am

I am in the process of selling an apartment in Lima. I had to leave Lima, very quickly 4 years ago due to major health issues.

I was a resident of Peru for about 15 years. I had a carnet. I purchased the home in August of 2004. I have of course lost my carnet long ago since I was not in country, and was not having it renewed.

The home was my primary residence from 2004-2014. I never rented the home. It has sat empty for the past 4 years. When I sell the apartment what will my tax obligation to Peru be? I am finding and hearing mixed answers. It is my understanding that I will pay 5% of the gains. Can anyone confirm this? Can anyone send me to the legislation, or source of this information?

I would be selling the home and sending the cash to the US. Any information you can provide would be GREATLY appreciated. I have tried searching here and can't find the answer.


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adrian Thorne
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Re: HELP! Real Estate Tax Question

Postby adrian Thorne » Wed Oct 10, 2018 10:44 pm

Sad about your situation, but as non-residents in Peru , you will have to pay 30% tax on the profit in Peru. Had you been living in the house as your main dwelling and as a Peruvian resident it would be 3%
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alan
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Re: HELP! Real Estate Tax Question

Postby alan » Thu Oct 11, 2018 11:11 am

adrian Thorne wrote:Sad about your situation, but as non-residents in Peru , you will have to pay 30% tax on the profit in Peru. Had you been living in the house as your main dwelling and as a Peruvian resident it would be 3%


Hi PeruFan and Adrian,

Actually, the scenario is not so bleak. One of the changes made in the early months of PPK's administration was to reduce the tax from 30% to a more manageable 5%. It is the responsibility of the buyer to withold the amount and to pay the tax.

Legal base can be found here: http://orientacion.sunat.gob.pe/index.p ... en-el-pais
Alpineprince
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Re: HELP! Real Estate Tax Question

Postby Alpineprince » Thu Oct 11, 2018 4:21 pm

A friend has sold two places recently. In both cases he had too pay the tax "upfront" on the morning of the closing before receiving the check. Also, you need to advise one of the agencies (forgot which) of the sale and tax payment within a short period of time or you will face fines.
liveinlima
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Re: HELP! Real Estate Tax Question

Postby liveinlima » Thu Oct 11, 2018 5:04 pm

Hi PeruFan

The percentage of capital gains to be paid if not domiciled in Peru (by definition being at least 183 days during the year prior to the year of the sale, even if a Peruvian citizen is 5%. This is 5% of the difference between the purchase and sale price. This went into effect January 1, 2017., previously being 30%. This amount is to be paid before the final signing of the escritura (before final amount received) but should easily be covered with the hard money downpayment or "arras," which is typically 10%, normally received weeks prior.

If domiciled in Peru (again meaning physically in the country for at least 183 days of the year prior to the year of the sale, regardless of resident, citizen or even tourist) the property being sold is a normal residential dwelling (not a commercial property for example), it is the only property owned and has been owned for at least 2 years the sale is exempt form capital gains.

Tim Brace
Gm @ LIVE IN LIMA
[email protected]
www.liveinlima.com
PeruFan
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Re: HELP! Real Estate Tax Question

Postby PeruFan » Tue Oct 16, 2018 6:56 am

THANK YOU to those that responded with information. That was very helpful. Your thoughts confirmed what I thought I was reading online.

We are in the process of selling now. Hopefully in a few more days we will have the apartment sold. I so appreciate your input.
Alpineprince
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Re: HELP! Real Estate Tax Question

Postby Alpineprince » Tue Oct 16, 2018 11:49 am

liveinlima wrote:Hi PeruFan

If domiciled in Peru (again meaning physically in the country for at least 183 days of the year prior to the year of the sale, regardless of resident, citizen or even tourist) the property being sold is a normal residential dwelling (not a commercial property for example), it is the only property owned and has been owned for at least 2 years the sale is exempt form capital gains.

Tim Brace
Gm @ LIVE IN LIMA
[email protected]
http://www.liveinlima.com

Can anybody verify this?
69roadrunner
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Re: HELP! Real Estate Tax Question

Postby 69roadrunner » Tue Oct 16, 2018 5:36 pm

Alpineprince wrote:
liveinlima wrote:Hi PeruFan

If domiciled in Peru (again meaning physically in the country for at least 183 days of the year prior to the year of the sale, regardless of resident, citizen or even tourist) the property being sold is a normal residential dwelling (not a commercial property for example), it is the only property owned and has been owned for at least 2 years the sale is exempt form capital gains.

Tim Brace
Gm @ LIVE IN LIMA
[email protected]
http://www.liveinlima.com

Can anybody verify this?

Treading on shaking ground there, seems asking that gets ypur post deleted.
At any rate any replies are moot as the op is happy with what he has found online in the first place.
cwcdavid
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Re: HELP! Real Estate Tax Question

Postby cwcdavid » Tue Feb 12, 2019 8:06 am

Does anyone know if you need an RUC when you sell and pay this capital gains tax?

Also has anyone been through the process to get an RUC without a CE. I.m aware there.s a thread that says not possible but that makes little sense since there are perfectly legal sources of income or profit (eg renting a house) on which tax would be payable and a non resident would thus need an ruc.

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