Peru tax lawyer for expats

US citizens and permanent residents living in Peru must continue to comply with US federal tax obligations, even while residing abroad. The Internal Revenue Code requires reporting of worldwide income, and additional disclosure requirements such as the Report of Foreign Bank and Financial Accounts (FBAR) and Foreign Account Tax Compliance Act (FATCA) may apply. At the same time, expats often have Peru tax obligations that require advice from a Peru-licensed attorney. Law Offices of SRIS, P.C. is a US law firm that assists expats with US tax compliance and collaborates with Peru-licensed Of Counsel for Peru-law matters. For a consultation on cross-border tax issues, reach the firm at (888) 437-7747.

US tax obligations for expats in Peru

US expats remain subject to the same federal income tax filing requirements as US residents. The foreign earned income exclusion (IRC § 911) may allow qualifying individuals to exclude a portion of their foreign earned income from US taxation, and the foreign tax credit (IRC § 901) can offset US tax liability for income taxes paid to Peru. Additionally, expats with foreign financial accounts exceeding certain thresholds must file an FBAR, and those with specified foreign financial assets may need to file Form 8938 under FATCA. The rules are complex, and failure to comply can result in significant penalties.

Peru tax obligations are separate and are governed by Peruvian law. A US-licensed attorney cannot advise on Peru tax law. For that, the firm works with Martín Mayandía, Of Counsel, who is admitted to practice law in Peru (2009) and is not admitted in any US state bar. His role is limited to Peru-law matters in collaboration with the US-admitted attorneys of the firm. All US-law aspects are handled by Mr. Sris and the US-admitted attorneys of the firm.

Frequently Asked Questions

Do I need to file a US tax return while living in Peru?

Yes, US citizens and permanent residents must file a US federal income tax return regardless of where they live. The US taxes worldwide income. Even if you owe no US tax after applying the foreign earned income exclusion or foreign tax credit, you may still need to file to report your income and claim those benefits. The filing threshold, forms, and deadlines are the same as for US residents, though automatic extensions may apply for those living abroad.

What is the foreign earned income exclusion?

The foreign earned income exclusion allows qualifying US expats to exclude a certain amount of foreign earned income from US taxation. To qualify, you must have foreign earned income, your tax home must be in a foreign country, and you must meet either the bona fide residence test or the physical presence test. The exclusion is claimed on Form 2555. The excluded amount is adjusted annually for inflation. It does not cover unearned income such as interest, dividends, or capital gains.

How does the foreign tax credit work for Peru taxes?

The foreign tax credit reduces your US tax liability dollar-for-dollar for income taxes paid to Peru. You can claim the credit on Form 1116. The credit is generally limited to the US tax attributable to your foreign-source income. If you paid Peru income tax on the same income that is also subject to US tax, the credit can prevent double taxation. Proper documentation of Peru taxes paid is essential. The credit is available regardless of whether a tax treaty exists between the US and Peru.

What is FBAR and do I need to file it?

FBAR (Report of Foreign Bank and Financial Accounts) is required if you have a financial interest in or signature authority over foreign financial accounts exceeding $10,000 in aggregate at any time during the calendar year. The report is filed electronically with FinCEN on FinCEN Form 114. It is separate from your tax return. The threshold applies to the total value of all foreign accounts, not per account. Penalties for noncompliance can be severe, including civil and criminal penalties.

What is FATCA and how does it affect expats in Peru?

FATCA (Foreign Account Tax Compliance Act) requires certain US taxpayers to report specified foreign financial assets on Form 8938 if the total value exceeds applicable thresholds. The thresholds vary based on filing status and whether you live in the US or abroad. For expats, the threshold is generally higher. FATCA also imposes reporting requirements on foreign financial institutions, which may affect your banking relationships in Peru. Compliance with both FBAR and FATCA may be required.

Do I need a Peru tax lawyer for my Peru tax obligations?

Yes, Peru tax matters should be handled by a lawyer licensed in Peru. US-licensed attorneys cannot provide legal advice on Peruvian tax law. Law Offices of SRIS, P.C. collaborates with Martín Mayandía, Of Counsel, who is admitted to practice law in Peru (2009) and is not admitted in any US state bar. His role is limited to Peru-law matters in collaboration with the US-admitted attorneys of the firm. This ensures that both your US and Peru tax obligations are addressed by qualified professionals.

How does the firm help with cross-border tax issues?

The firm’s US-licensed attorneys handle US tax compliance, while the Peru-licensed Of Counsel addresses Peru tax matters. Mr. Sris and the US-admitted attorneys can assist with US tax return preparation, FBAR and FATCA compliance, foreign earned income exclusion claims, and foreign tax credit calculations. For Peru tax issues, the firm engages Martín Mayandía, who is admitted in Peru (2009) and not admitted in any US state bar, to provide Peru-law advice. The two sides coordinate to help you manage your overall tax situation.

What should I bring to a consultation about expat taxes?

Bring your most recent US tax return, any Peru tax filings, details of your foreign financial accounts, and information about your income sources. For US tax matters, also bring records of any foreign taxes paid, your travel dates (for the physical presence test), and documentation of your housing expenses if you plan to claim the foreign housing exclusion. For Peru tax matters, the Peru Of Counsel will advise on what Peruvian documents are needed. Having this information ready helps the attorneys assess your situation efficiently.

How do I contact the firm about Peru expat tax issues?

You can reach Law Offices of SRIS, P.C. at (888) 437-7747 to schedule a consultation. The firm’s US principal location is in Virginia, and consultations are by appointment only. The firm’s US-admitted attorneys can discuss your US tax obligations, and if Peru tax advice is needed, the firm will coordinate with Martín Mayandía, Of Counsel, who is admitted in Peru (2009) and not admitted in any US state bar. All US-law aspects are handled by Mr. Sris and the US-admitted attorneys of the firm.

Can the firm help if I have both US and Peru tax issues?

Yes, the firm is structured to address both US and Peru tax matters through its US-licensed attorneys and its Peru-licensed Of Counsel. The US-admitted attorneys handle all US tax compliance, while Martín Mayandía, who is admitted in Peru (2009) and not admitted in any US state bar, provides Peru-law advice. This collaborative approach allows you to work with a single point of contact for your cross-border tax needs, with each attorney operating within their licensed jurisdiction.