Peru top income tax rate: 30%. Corporate tax: 29.5%. IGV (VAT): 18%. Peru’s progressive income tax system reaches only 30% at the top bracket, while the 5% capital gains tax on Lima Stock Exchange transactions is one of Latin America’s lowest. Lima has rapidly evolved into a South American business hub — attracting entrepreneurs, NGO workers, and expats seeking a major Pacific city with lower costs than Santiago or Bogotá.
Sources: SUNAT (Superintendencia Nacional de Aduanas y de la Administración Tributaria) 2024; OECD Tax Database 2024; official Peruvian government fiscal authorities.
Key Tax Data at a Glance
| Tax Type | Rate | Notes | Source | Year |
|---|---|---|---|---|
| Income Tax — top rate (resident) | 30% | Over S/ 231,750 (~USD 62,000) | SUNAT | 2024 |
| Income Tax — lowest rate (resident) | 8% | Up to S/ 25,750 (UIT 5x) | SUNAT | 2024 |
| Income Tax — non-resident | 30% | Flat on Peru-source income only | SUNAT | 2024 |
| Corporate Tax | 29.5% | Standard rate; standard 2024 SUNAT rate | SUNAT | 2024 |
| IGV (standard VAT rate) | 18% | 16% IVA + 2% municipal promotion tax | SUNAT | 2024 |
| Capital Gains Tax — stocks (BVL) | 5% | Lima Stock Exchange transactions | SUNAT | 2024 |
| Social Security (employee) | 13% or 12.5–13% | ONP public pension (13%) or AFP private (12.5–13%) | SUNAT | 2024 |
| Digital Nomad Visa | No | Standard tourist visa 183 days (renewable); standard income resident requirements apply | Official | 2024 |
Income Tax Brackets (Residents)
Peru uses a progressive tax system indexed to the UIT (Unidad de Impuesto Tributario — Tax Reference Unit). For 2024, 1 UIT = S/ 5,150 (approximately USD 1,398 at standard rates). Residents pay tax on worldwide income; non-residents at a flat 30% on Peru-sourced income only.
| Annual Income Range (Soles) | Annual Income Range (USD) | Tax Rate |
|---|---|---|
| Up to S/ 25,750 (5 UIT) | Up to ~USD 6,990 | 8% |
| S/ 25,750 – S/ 103,000 (5–20 UIT) | ~USD 6,990–27,960 | 14% |
| S/ 103,000 – S/ 180,250 (20–35 UIT) | ~USD 27,960–48,825 | 17% |
| S/ 180,250 – S/ 231,750 (35–45 UIT) | ~USD 48,825–62,790 | 20% |
| Over S/ 231,750 (45+ UIT) | Over ~USD 62,790 | 30% |
Non-Resident Taxation
Non-residents working in Peru or earning Peru-source income are taxed at a flat 30% rate on income derived from Peruvian sources only. The 183-day rule determines residency: if you spend more than 183 days in Peru during a calendar year, you are considered a resident and subject to worldwide income taxation.
Non-residents are not eligible for the progressive brackets above. Foreign income is not taxed unless remitted to Peru (territorial system distinction). Standard tourist visas allow 183 days entry; extensions are available but do not automatically establish tax residency without formal residency application.
Corporate Tax
Corporations and legal entities in Peru are subject to a 29.5% corporate income tax rate on net profits. Dividends paid to non-resident shareholders are subject to a 5% withholding tax on distribution amounts. Small businesses and microenterprises may qualify for reduced rates under special tax regimes; consult SUNAT for current eligibility.
Peru is a signatory to OECD standards and BEPS initiatives. Transfer pricing documentation is required for related-party transactions. SUNAT actively enforces compliance, particularly for foreign-sourced income in high-value sectors.
IGV — Consumption Tax (VAT)
Peru’s IGV (Impuesto General a las Ventas) standard rate is 18%, comprising 16% national IVA (Value Added Tax) plus 2% municipal promotion contribution. The tax applies to the sale of goods, provision of services, and imports. Exporters typically qualify for zero-rating on exported goods. Food (certain staples), medicine, and water for domestic consumption may carry reduced rates or exemptions under specific conditions.
VAT registration is required for businesses exceeding the threshold; small-scale sellers may qualify for simplified regimes. Invoicing must follow SUNAT format requirements.
Capital Gains & Investment Income
Peru offers one of Latin America’s lowest capital gains tax rates: 5% on transactions via the Bolsa de Valores de Lima (BVL — Lima Stock Exchange). This attractive rate applies to gains on equities, securities, and derivatives traded through regulated exchanges, making Lima an appealing hub for investment professionals.
Real estate capital gains are subject to a 5% tax if two or more property transactions occur within two calendar years; otherwise, real estate transactions may be exempt. Dividends received by individuals are taxed as ordinary income under the progressive brackets above.
Crypto and non-regulated assets typically fall under ordinary income or capital gains rules depending on classification and holding period; SUNAT guidance on emerging assets continues to evolve.
Social Security
Peru offers two social security pension systems: the public ONP (Sistema Nacional de Pensiones) at a flat 13% employee contribution, and the private AFP (Administradoras de Fondos de Pensiones) system at approximately 12.5–13% employee contribution (plus commissions and insurance). Most private sector workers and expatriates opt for the AFP system due to higher projected returns.
International bilateral agreements may exempt certain expats from mandatory pension contributions; verify your home country’s treaty status with Peru. Employer contributions are separate and additional to employee rates.
Frequently Asked Questions
How much tax do expats pay in Peru?
Non-residents pay a flat 30% on Peru-source income only and are not subject to worldwide taxation. Residents (spending 183+ days per year) are taxed progressively at 8–30% on worldwide income, with the top rate (30%) applying only to annual earnings exceeding ~USD 62,800. Most expats working in Lima operate as non-residents initially or use territorial-income planning strategies.
Does Peru tax foreign income for non-residents?
No. Non-residents pay 30% on Peru-sourced income only. Foreign-earned income (dividends, remote work paid to foreign accounts, investment gains outside Peru) is generally not taxed by SUNAT. However, once you exceed 183 days in Peru during a calendar year, you become a resident and must declare worldwide income.
What is Peru’s competitive advantage for investors and entrepreneurs?
Peru’s 5% capital gains tax on Lima Stock Exchange transactions is one of the lowest in the region — comparable to Chile’s 0% for long-term holdings but far more accessible. Combined with Lima’s role as a financial and business hub, Peru attracts portfolio investors, fund managers, and traders seeking efficient tax treatment on liquid investments. Corporate rate (29.5%) sits mid-range for the region.
What taxes do freelancers and self-employed workers pay in Peru?
Freelancers and self-employed professionals (monotributistas and regular tax-filers) pay ordinary income tax under the progressive resident brackets (8–30%) if they are residents, or 30% flat if non-residents on Peru-source income. VAT (IGV 18%) must be collected and remitted to SUNAT on invoiced services. Many small freelancers qualify for the monotributo (simplified single-tax regime) with a fixed monthly fee and reduced compliance burden.
How does Peru compare to Colombia and Chile for taxes?
Peru vs Colombia: Peru’s top income tax (30% residents / 30% non-residents) is competitive; Colombia’s reaches 45% for high earners. Peru’s 5% capital gains on stocks beats Colombia’s 10–20% spreads. Corporate rates are similar (Peru 29.5% vs Colombia 35%). VAT similar (Peru 18% vs Colombia 19%).
Peru vs Chile: Chile’s 42% top income tax rate and 27% VAT are higher. However, Chile offers 0% capital gains tax on long-term holdings (2+ years), which is more favorable for buy-and-hold investors. Peru’s non-resident regime (30% flat, territorial) is more transparent than Chile’s complex residency rules. For business setup, both offer stability; Peru appeals more to short-to-medium-term traders and liquid-investment portfolios.
Explore Further
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Cost of Living
Sources: SUNAT (Superintendencia Nacional de Aduanas y de la Administración Tributaria) Peru 2024; OECD Tax Database 2024; official Peruvian Ministry of Finance. All rates verified April 2026. UIT 2024 = S/ 5,150. Exchange rate reference: 1 USD ≈ S/ 3.69 (informational only — consult current rates for transactions). This page is informational only and not financial or tax advice — consult a qualified tax professional licensed to practice in Peru (contador público or gestor tributario) for individual situations, residency determination, and treaty benefits.