Peru offers a relatively open and secure legal framework for land ownership, allowing both nationals and foreign investors to acquire real estate with full property rights. However, the process is formalistic and highly dependent on proper due diligence, notarisation, and registration before public authorities. Understanding each stage of the transaction is essential to mitigate risk and ensure valid title transfer.

This article outlines the legal process for purchasing a land plot and registering a new landowner in Peru.

Legal Framework for Land Ownership in Peru

Peruvian law permits foreign individuals and entities to own land under the same conditions as nationals. Ownership rights are constitutionally protected, with the primary limitation being land located within 50 kilometers of national borders, which requires special governmental authorisation.

Property rights are formalized and protected through registration with the National Superintendency of Public Registries (Superintendencia Nacional de los Registros Públicos, SUNARP), the national public registry system responsible for recording ownership and encumbrances.

Tax Identification and Representation

Before entering into a transaction, buyers, particularly foreigners, must obtain a Peruvian tax identification number (Registro Único del Contribuyente, RUC) from the National Superintendency of Customs and Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria, SUNAT). This is necessary for tax compliance and registration purposes.

Buyers may also act through a legal representative via a notarised and legalised power of attorney, a common practice in cross-border transactions.

Due Diligence

Land due diligence is the most critical stage of the acquisition process. At this point, a potential buyer should carefully verify the property’s ownership status through SUNARP records, confirm the absence or existence of any liens, mortgages, or other encumbrances, and review the historical chain of title. It is also essential to examine land boundaries and cadastral information, as well as the applicable zoning classification and any land use restrictions. In addition, it must be ensured there are no ongoing disputes, inheritance issues, or claims of informal possession affecting the property.

To confirm the legal status of the property, an Immovable Property Registry Certificate (Certificado Registral Inmobiliario, CRI) or “copia literal” is typically obtained.

Failure to conduct proper due diligence exposes the buyer to significant risks, particularly in cases involving unregistered or communal land.

Private Purchase Agreement

Once due diligence has been satisfactorily completed, the parties typically execute a private purchase agreement, commonly referred to as a "minuta (contrato) de compraventa".

This document sets out the identification of the buyer and seller, provides a detailed description of the property, and specifies the purchase price along with the agreed payment terms. It may also include any conditions precedent that must be fulfilled prior to completion.

While this agreement is legally binding between the parties, it does not by itself transfer ownership of the property.

Execution of the Public Deed

Ownership transfer in Peru requires formalisation through a public deed executed before a notary.

In this process, the notary plays a central role by verifying the identity and legal capacity of the parties, reviewing the relevant registry and supporting documents, and drafting and formalising the Public Deed. The notary also ensures that all legal requirements have been properly complied with.

Without notarisation, the transfer is not legally enforceable against third parties.

Payment of Taxes and Transaction Costs

The tax applicable to property transfers in Peru is generally calculated at 3% of the transfer value, subject to certain exemptions. In addition to this tax, the transaction typically involves notarial fees and registration fees. Compliance with the applicable tax obligations is required prior to or during the registration of the transaction.

Registration of Ownership with the Public Registry

The final and decisive step in the process is the registration of the public deed with the Public Registry. The notary typically submits the required documentation, either electronically or in physical form, for review by the registry authority.

The Public Registry then examines the legality of the deed, verifies compliance with all formal requirements, and records the transfer in the property registry.

Only upon successful registration does the buyer become the legally recognised owner, with rights that are enforceable against third parties.

How We Can Assist

A standard transaction involving a clean title may take between 2 to 6 weeks from due diligence to final registration. However, properties with irregularities may require additional time.

Our services include:

• Conducting legal due diligence on title, encumbrances, and land use;
• Drafting and negotiating purchase agreements;
• Coordinating notarisation and execution of the public deed;
• Advising on taxes and ensuring compliance; and
• Handling registration before the public registry.

The acquisition and registration of land in Peru is a structured legal process centered on three pillars: due diligence, notarisation, and registration. A proactive approach, combining thorough verification, proper documentation, and close coordination with notaries and registry authorities, remains the best safeguard against legal and financial risk.