Land leases are a common legal mechanism in Peru for granting the use and enjoyment of real property without transferring ownership. They are primarily governed by the Peruvian Civil Code, which establishes both mandatory rules (such as maximum duration) and supplementary provisions that parties may negotiate freely.

Peruvian law generally adopts a principle of equal treatment for foreign and domestic investors. As a result, foreign individuals and entities may enter into land lease agreements under the same conditions as Peruvian nationals, without the need for prior authorisation in most cases.

Legal Nature of a Land Lease in Peru

Under Peruvian law, a lease (arrendamiento) is a contractual right that allows the lessee to use property in exchange for rent. It is generally considered a personal right rather than a real right, meaning that the lease exists upon execution of the contract rather than upon registration, and registration is not required for its validity between the parties. However, registration plays a decisive role in protecting the tenant’s rights vis-à-vis third parties.

Process to Register a Land Lease

Although not mandatory, registering a lease is strongly recommended in commercial and long-term land arrangements. The registration is carried out before the Public Registry (Superintendencia Nacional de los Registros Públicos, SUNARP).

Step 1: Execution of the Lease Agreement

The parties must enter into a written lease agreement. While private documents are valid, notarisation is standard practice for registrable instruments.

Step 2: Notarisation

The lease agreement is typically formalised before a Peruvian notary public, who certifies the identities of the parties and the validity of the document.

The notary prepares or elevates the lease agreement into a public deed (escritura pública).

Step 4: Filing with the Public Registry

The notarised document or public deed is submitted to the Public Registry together with an application form, a copy of the lease agreement, proof of payment of the registration fees, and identification of the property, such as the registry file or title number.

The Public Registry reviews the legality and formal compliance of the document. If compliant, the lease is recorded in the property’s registry entry.

Once registered, the lease becomes part of the public record and is enforceable against third parties.

Legal Effects of Registration

Registration is not mandatory, but it has important legal consequences. A registered lease is enforceable against third parties and binds subsequent purchasers of the property, while also protecting the tenant from eviction by a new owner. By contrast, an unregistered lease may be terminated by a buyer. Registration further ensures priority and publicity, as third parties are deemed to have notice of registered rights. In practice, registration is essential for long-term or investment-grade land leases.

Maximum Duration of Land Leases in Peru

Under the Peruvian Civil Code, lease duration is subject to a strict statutory limit. As a general rule, fixed-term leases may not exceed ten years. In special cases, such as when the property belongs to a state entity or a legally incapacitated person, the maximum term is reduced to six years. Any contractual clause that exceeds these limits is automatically reduced to the applicable legal maximum.

There is no statutory minimum duration for leases, so the parties are free to agree on shorter terms as they see fit.

Although a single lease term cannot exceed ten years, the parties may agree on renewal options. Each renewal, however, must independently comply with the legal maximum duration. Arrangements that effectively create perpetual or excessively long tenures risk being recharacterised or curtailed under the law.

Alternative Structures

Where longer-term land use is required, parties often consider alternative legal structures. These may include usufruct rights, surface rights (derecho de superficie), or concessions, which can offer longer durations and greater stability than standard lease agreements under Peruvian law.

How We Can Assist

Our firm provides comprehensive legal support for land lease arrangements in Peru, guiding clients through every stage of the transaction with a focus on risk mitigation and regulatory compliance.

Our services include:

• Drafting and negotiating land lease agreements in compliance with Peruvian law;
• Advising on lease structuring, including renewals and long-term alternatives (e.g., usufruct, surface rights);
• Managing notarisation and registration before the Public Registry; and
• Conducting legal due diligence on property title, encumbrances, and zoning.

From initial negotiation to post-registration support, we deliver practical, business-oriented advice to ensure that your land lease in Peru is secure, compliant, and aligned with your strategic goals.