PERU Law and Practice Contributed by: Percy Castle, Violeta Moncada, Angel Quispe and Dayana Evangelista, Casahierro Abogados
detailed in 1.1 Tax Regimes . There is no formal “exit tax,” but timing the tax residency status can signifi - cantly mitigate exposure. 1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens There are no wealth taxes in Peru, but real estate is subject to a tax levied by the local government based on the value of urban and rural properties, with pro - gressive rates between 0.2% and 1%. In addition, the transfer of real estate is subject to a 3% property transfer tax, with the first ten Tax Units (or “UIT” in Spanish, which is a monetary measurement amount represented in local currency and established by the government at the beginning of each year fol - lowing inflation and other calculations – approximately USD1,618 per unit today – that tends to increase eve - ry year). It is assessed by the local government and must be paid by the acquirer. This tax is not applicable in case of transfers caused by the foretaste of the inheritance. 1.6 Stability of Tax Laws Peru’s tax laws are generally stable, but recent devel - opments reflect a clear trend toward stricter compli - ance and broader anti-avoidance measures. For high- net worth individuals, trusts and estates, the concern is not an imminent increase in tax rates but rather the expanding oversight of the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT) and the OECD-aligned anti-abuse frame - work. SUNAT has adopted a stronger fiscal stance, with a marked emphasis on maximising tax collection through enhanced enforcement and substance over form evaluations. 1.7 Transparency and Increased Global Reporting Peru has taken significant steps to address perceived abuses and loopholes in its tax laws, aligning with global transparency initiatives while balancing privacy concerns. The emphasis is on anti-avoidance, cross border reporting, and beneficial ownership disclosure. In 2013, international tax transparency rules were introduced, requiring tax residents to pay tax on income derived from foreign entities classified as con -
trolled non-domiciled entities, even in cases where such entities do not distribute dividends. On the other hand, Peru adopted the Common Report - ing Standard (CRS) in 2018 and began the automatic exchange of financial account information with partner jurisdictions. As a result, offshore accounts held by Peruvian residents are reported to SUNAT, while Peru also shares information on foreign residents’ accounts held locally. On this basis, SUNAT has increasingly initiated tax reviews and audits, leveraging the data obtained through CRS to strengthen compliance and enforcement. With respect to FATCA, Peru signed an intergovern - mental agreement with the United States to ensure compliance. Under this framework, local banks and financial institutions are required to identify US per - sons and report their accounts to SUNAT, which then exchanges the information with the Internal Revenue Service (IRS). However, in tax practice, FATCA imple - mentation has not proven to be as effective or com - prehensive as the CRS. Peru ratified the OECD Multilateral Instrument (MLI), effective January 2026, thereby modifying its dou - ble tax treaties to incorporate anti-abuse provisions, principal purpose tests, and strengthened permanent establishment rules. Peru requires companies, trusts, and foundations and other entities to identify and maintain updated information regarding their ultimate beneficial owners (UBOs), which must be reported to SUNAT. Although the register is not fully public, SUNAT and financial regulators have access to this data. This development has a direct impact on estate planning, as anonymity in offshore structures is no longer a viable option. All measures adopted have made foreign accounts and structures visible to SUNAT. Estate planners must therefore anticipate disclosure and design vehicles that are fully compliant. Planning now requires bal - ancing asset protection with transparency obligations, while also demonstrating economic substance and a genuine estate or succession purpose. Structures driven purely by tax considerations risk being rechar -
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