Peru foreign buyer real estate
Peruvian individuals and businesses acquiring real estate in the United States encounter a legal landscape that blends federal tax rules, state property law, and cross-border financial considerations. Law Offices of SRIS, P.C., a US law firm founded in 1997, advises foreign buyers on structuring acquisitions, complying with FIRPTA withholding, and navigating the transaction from offer through closing. The firm works with Peruvian counsel to address international aspects of the purchase, including the transfer of funds and authentication of documents required by US lenders, title companies, and the Internal Revenue Service. Reach us at (888) 437-7747.
How a Peruvian Buyer Purchases US Real Estate
Peruvian buyers can acquire residential or commercial property in the United States without a special visa or US residency. The process is largely the same as for a domestic buyer, with the addition of specific tax obligations under the Foreign Investment in Real Property Tax Act (FIRPTA) and certain document-authentication requirements. A buyer from Peru must typically provide a valid passport, taxpayer identification (either a Social Security number or an Individual Taxpayer Identification Number), and evidence of the source of funds for anti-money laundering compliance. Financing may be available from US lenders, but many Peruvian buyers close in cash to avoid the additional documentation and higher interest rates often associated with foreign-national mortgages.
FIRPTA is the central US tax framework governing a Peruvian buyer’s acquisition and eventual disposition of US real estate. Under 26 U.S.C. § 897, a disposition of a US real property interest by a foreign person is treated as effectively connected with a US trade or business, making the gain subject to US income tax. At closing, the buyer may need to provide a FIRPTA affidavit or obtain a withholding certificate from the IRS. The buyer should also understand the estate tax implications, as US-situs real estate owned by a non-resident alien is included in the gross estate for US federal estate tax purposes. Proper entity structuring—for example, through a foreign corporation or a US limited liability company—can mitigate some tax exposure, but the choice must be evaluated against both US and Peruvian tax consequences. Because the Peruvian tax system taxes worldwide income, a Peruvian buyer must coordinate the US and Peruvian sides of the transaction to avoid double-taxation.
Frequently Asked Questions
Can a Peruvian citizen buy a house in the United States without a green card?
Yes. A Peruvian citizen does not need US residency or a green card to purchase residential real estate. There is no citizenship or immigration-status requirement to own property in any US state. The key practical steps are obtaining an Individual Taxpayer Identification Number (ITIN) if a Social Security number is unavailable, opening a US bank account to facilitate the transfer of funds, and working with a title company that has experience with foreign buyers. The buyer will not be granted any immigration benefit solely from the purchase, but acquiring a US home does not violate immigration law either.
Do I need to travel to the United States to complete the purchase?
Not necessarily. While an in-person closing is common, Peruvian buyers can often execute the required documents in Peru with the help of a US-licensed attorney and a notary public in compliance with Peruvian law. The signed documents then need to be authenticated for use in the US. If Peru is a signatory to the 1961 Hague Apostille Convention (as of 2026-05, Peru has been a signatory since 1998), an apostille issued by the Peruvian competent authority can replace consular legalization. The apostille certifies the notary’s signature and seal, making the document acceptable to US title companies and recorders. Alternatively, a power of attorney can be granted to a US-based representative to sign on the buyer’s behalf.
How are US real estate purchases taxed for Peruvian buyers?
On purchase, the buyer faces state and local transfer taxes plus potential FIRPTA withholding obligations. The IRS requires a buyer to withhold 15% of the amount realized upon the disposition of a US real property interest by a foreign seller, but at the time of acquisition it is the seller’s obligation. More relevant for the buyer is ensuring that the seller provides the required certification of non-foreign status or that the buyer withholds the appropriate amount to avoid personal liability. Beyond closing, the buyer must file annual US income tax returns if the property generates rental income. The US and Peru do not have a comprehensive income tax treaty, so the buyer must claim a foreign tax credit in Peru for US taxes paid, subject to Peruvian limits.
What type of title should I hold?
For a Peruvian buyer, fee simple title is the strongest and most common form of ownership for residential real estate. The title can be held in the buyer’s individual name, in a US-domiciled limited liability company (LLC), or in a foreign entity. Holding through an LLC can provide liability protection and may simplify estate planning because the LLC interest is intangible personal property that may avoid US probate. However, the LLC must be properly formed and maintained, and the buyer should consult both US and Peruvian legal and tax advisors. Joint ownership with a spouse or partner is possible under state-specific rules.
Can I get a US mortgage as a Peruvian national?
Yes, but foreign-national mortgage programs typically require a larger down payment and offer higher interest rates than those for US citizens. Lenders will require a valid passport, an ITIN or foreign tax identification number, proof of income, bank statements, and often a credit report from a US-based credit bureau (which a Peruvian buyer may not have). Many Peruvian buyers therefore pay in cash to avoid the complexities of cross-border lending. If financing is sought, the buyer should engage a lender that has experience with international borrowers and start the process early.
What documents from Peru are needed for a US real estate closing?
The essential documents are a valid passport, a Peruvian-issued birth certificate or national identity document, evidence of the source of funds, and any corporate documents if the buyer is a Peruvian entity. If the buyer will sign closing documents outside the US, a notarized power of attorney or a remote online notarization (where permitted by state law) may be required. All foreign-language documents should be accompanied by a certified English translation. The apostille process under the 1961 Hague Apostille Convention simplifies authentication between Peru and the US.
Are there restrictions on the amount of money a Peruvian can transfer to the US for a property purchase?
Peruvian exchange controls do not generally restrict the transfer of funds abroad for legitimate investment purposes, but any transfer over certain thresholds must be reported to the Peruvian tax authority (SUNAT). The buyer should work with their Peruvian bank and legal counsel to ensure the transfer complies with Peruvian anti-money laundering and tax reporting rules. On the US side, the buyer must file FinCEN Form 114 (FBAR) if the US deposit exceeds $10,000, and possibly IRS Form 8938. The source of funds must be documented and declared to the title company and, in some cases, to the US lender.
What happens to the US property when the Peruvian owner dies?
US-situs real estate owned by a non-resident alien is subject to US federal estate tax if the fair market value of the deceased’s worldwide US-situs assets exceeds $60,000. The estate tax rate is graduated up to 40%, and the decedent’s estate must file a US estate tax return within nine months of death. Ownership through a properly structured foreign entity may avoid probate and reduce estate tax exposure, but the structure must be implemented before purchase and must satisfy US anti-avoidance provisions. Peruvian inheritance law and any applicable US-Peru estate tax treaty provisions (as of 2026-05, there is no comprehensive US-Peru estate tax treaty) also affect the disposition.
Is it better to buy residential or commercial property from a legal standpoint?
The choice depends on the buyer’s investment goals and tax profile, but from a legal standpoint residential property is generally less complex at acquisition than commercial property. Commercial transactions often involve environmental assessments, zoning due diligence, lease review, and more intricate financing. A Peruvian buyer acquiring a medical office building or a retail strip center, for example, should also consider the local business licensing and property management obligations. Both asset classes are available to foreign buyers with the same essential legal process.
Should I use a Peruvian lawyer, a US lawyer, or both?
Both. A US-licensed attorney should handle the property acquisition under US law, while a Peruvian lawyer should advise on Peruvian tax, exchange-control, and estate implications. Law Offices of SRIS, P.C., as a US law firm, guides the purchase from the US side — contract review, negotiation, closing, FIRPTA compliance, entity formation — while coordinating with Peruvian counsel. Martín Mayandía, Of Counsel for Peru matters at the firm, is admitted to practice law in Peru (2009). He is not admitted to practice law in the United States and serves as a liaison for Peruvian-law aspects, not as the attorney handling the US transaction.
How long does the typical real estate closing take for a Peruvian buyer?
A cash purchase can close in as little as two to three weeks once all documents are assembled; a financed purchase usually takes 45–60 days. The timeline is driven by the lender’s underwriting, the title company’s due diligence, and the time needed to authenticate foreign documents. Buyers should begin the process well in advance, particularly if they need to obtain an ITIN or open a US bank account.
About Mr. Sris and the Of Counsel Network
Atchuthan Sriskandarajah, Esq. (Mr. Sris), Owner and Founder of Law Offices of SRIS, P.C., is admitted to practice law in Virginia, Maryland, the District of Columbia, New Jersey, and New York. He has handled residential and commercial real estate transactions for US and international clients since 1997. The firm’s cross-border capabilities are augmented by its foreign-jurisdiction Of Counsel network, including Martín Mayandía (Peru, 2009). Mr. Mayandía is admitted to practice law in Peru and not in the United States, and his role is limited to Peruvian-law matters and liaison services with the firm’s US-licensed attorneys. Together, Mr. Sris and his Of Counsel bring extensive combined legal experience to Peruvian buyers acquiring property in the US.