Relocation intelligence

🇵🇪 Moving to Peru: tax, residency and cost of living

A progressive system built on the UIT (tax unit of PEN 5,500 in 2026). Employment (fifth-category) income enjoys a 7 UIT allowance (PEN 38,500); above that, rates run from 8% through 14/17/20% up to 30%. Non-domiciled foreigners pay a flat 30% on Peruvian-source income only during their initial period.

Thinking of moving to Peru? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
30%
Corporate tax
29.5%
Capital gains
5%
Wealth tax
No
Inheritance tax
No
Cost of living index
37
Safety
4/10
Internet quality
6/10
Visa-free destinations
142
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

UIT 2026 = PEN 5,500. Employment income: 7 UIT (PEN 38,500) exempt, then 8/14/17/20/30% across bands of 5/20/35/45 UIT. Pension ONP 13% (or AFP about 12.5%) is an employee cost and non-deductible; EsSalud 9% is employer-borne. No wealth or inheritance tax.

Residency and visas

A residence permit (carne de extranjeria) via a work, rentista or investor visa is usually arranged within a few months; naturalisation now requires 5 years of continuous residence after the reform.

Property ownership

Foreigners can own residential property with the same rights as Peruvians, except within 50 km of the national borders.

Cost of living and quality of life

Low cost of living, rich culture and cuisine, but urban safety and bureaucracy require attention.

Passport and mobility

The Peruvian passport provides visa-free or visa-on-arrival access to 142 destinations in 2026 (Henley, rank 31).

Why people move to Peru

  • High tax-free allowance and low entry rate

    The first PEN 38,500 (7 UIT) of employment income is fully tax-free and the rate above that starts at just 8%, favourable for middle incomes.

  • Territorial-style start and affordable living

    Foreigners are taxed only on Peruvian-source income during their first period and the cost of living sits well below Western European levels.

Honest trade-offs

  • Zodra je gedomicilieerd raakt (vanaf het jaar na 183 dagen aanwezigheid) belast Peru je wereldwijde inkomen, dus de territoriale voordelen gelden alleen de eerste periode.
  • De verplichte pensioenbijdrage van circa 13% (ONP) of 12,5% (AFP) is werknemerslast en is niet aftrekbaar van de inkomstenbelasting, waardoor het nettoloon flink lager uitvalt.
  • Sinds de nieuwe nationaliteitswet is de termijn voor naturalisatie verhoogd van 2 naar 5 jaar ononderbroken legaal verblijf.
  • Criminaliteit en straatroof zijn een reeel probleem in de grotere steden, wat de veiligheidsbeleving voor nieuwkomers drukt.
  • Buitenlanders mogen geen onroerend goed bezitten binnen 50 kilometer van de landsgrenzen vanwege een grondwettelijke veiligheidsbeperking.

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Sources

Other destinations

AndorraUnited Arab EmiratesAfghanistanAntigua & BarbudaAnguillaAlbaniaArmeniaAngolaArgentinaAmerican SamoaAustriaAustralia