Does Peru have an inheritance tax?
No. Peru does not have an inheritance tax in the strict sense.
An heir who receives property in Peru does not pay a tax simply because they inherit. The transfer of property following a death is not treated as a sale. It falls under succession law and registration formalities.
This is an important difference from certain European countries, where heirs may be taxed based on the amount received and their degree of kinship. In Peru, the central issue is the legal regularisation of ownership: having the heirs recognised, registering the succession, and then transferring title at the property registry (SUNARP).
Until this documentary chain is complete, heirs may encounter difficulties selling, renting or managing the property.
What can cost despite the absence of tax
Even without inheritance tax, a property succession in Peru generates costs. The main items are generally:
- Death certificates, succession certificates or wills
- Involvement of a notary or, in some cases, a judge
- Registration of the succession with SUNARP
- Transfer to the property registry
- Lawyer fees
- Official translation of foreign documents
- Apostille or legalisation of Swiss documents
- Power of attorney if the heirs cannot travel to Peru
- Possible bank fees related to settling the succession
These costs are very different from a proportional inheritance tax. They depend on the complexity of the case, the number of heirs, whether or not a will exists, and the presence of international elements.
Case 1: Peruvian resident or family living in Peru
For a person resident in Peru, the succession is handled within the local framework.
If a valid will exists, the heirs follow the testamentary route. If there is no will, the process requires an intestate succession (sucesión intestada), a procedure to officially recognise the legal heirs.
This procedure can be carried out through a notary when the situation is straightforward and uncontested. It may go through the courts if the case is disputed.
Once the heirs are recognised, the succession must be registered with SUNARP. For a property, an additional step is essential: having the heirs appear as the new titleholders in the property registry.
The sucesión indivisa
If the property generates rental income between the death and the final distribution, the succession may have its own tax obligations. In Peru, this is referred to as a sucesión indivisa. The income continues to exist for tax purposes until the heirs are identified and their shares determined. After that, each heir declares the income corresponding to their share.
Case 2: Swiss investor owning property in Lima
For a Swiss investor, the question splits into two levels.
Peruvian level
The property is located in Lima: Peruvian formalities apply. The heirs will need to be recognised and registered as owners with SUNARP. The absence of inheritance tax in Peru does not eliminate this step. The presence of international elements (Swiss documents, non-resident heirs) adds further procedures: apostilles, official translations, powers of attorney.
Swiss level
If the deceased was tax-resident in Switzerland, Swiss rules may come into play. Switzerland does not have a federal inheritance tax, but cantons apply their own rules. The treatment depends on the canton, the relationship between the deceased and the heirs, and the nature of the assets transferred.
A spouse or direct descendants are often exempt or very favourably treated, but this rule must be verified on a canton-by-canton basis. For more distant heirs, the tax exposure can be significant.
Switzerland–Peru tax convention
Switzerland and Peru have concluded a double taxation agreement covering income and wealth taxes (in force since 10 March 2014). However, there is no specific inheritance convention between the two countries. The tax treatment of a succession involving both jurisdictions must be verified with a tax adviser familiar with both systems.
Succession, donation and anticipo de legítima
Peruvian law recognises several transfer mechanisms:
- Succession (testamentary or intestate): transfer following the death of the owner.
- Donation (donación): inter vivos transfer, made gratuitously. May have specific tax consequences.
- Anticipo de legítima: advance on inheritance made during the owner's lifetime, reserved for legal heirs. Formalised before a notary.
Each mechanism has its own legal, tax and registry consequences. The choice depends on the family, asset and tax situation. It must be analysed with a lawyer specialising in Peruvian succession law and, for a Swiss investor, with a tax adviser familiar with both jurisdictions.
Is the Alcabala due on an inheritance?
The Alcabala is the Peruvian property transfer tax. In a standard sale, it is the buyer's responsibility.
But a transfer upon death should not be confused with a sale. Transfers that occur by reason of death are generally treated separately and do not follow the logic of an ordinary property acquisition.
This is an important point for families: receiving a property through inheritance is not the same transaction as buying one. However, if the heirs subsequently decide to sell the property, the future sale will need to be assessed under the rules applicable at that time.
Post-inheritance tax: rental income, property tax, capital gains
The succession is one step; the tax management of the property after transfer is another. A property received through inheritance may then:
- Generate rental income subject to Peruvian tax (~5% on gross rental income for non-domiciled individuals when the tenant is domiciled in Peru, under SUNAT rules; terms to be verified).
- Be subject to the annual property tax (Predial), calculated on the self-assessed value of the property.
- Create a taxable capital gain upon resale. The tax treatment of the capital gain depends on the seller's residence status and the rules applicable at the time of the transaction.
On the Swiss side, rental income received in Peru must in principle be included in the owner's tax return. The Switzerland–Peru double taxation agreement (in force since 2014) provides mechanisms to avoid double taxation on income; consult your tax adviser.
Summary table: tax or fee? Who pays? When?
| Item | Nature | Who pays | When |
|---|---|---|---|
| Inheritance tax (Peru) | Does not exist | — | — |
| Inheritance tax (Switzerland) | Cantonal tax | Heirs | Depending on the canton of the deceased |
| Notary (Peru) | Fee | Heirs | During the succession procedure |
| SUNARP registration | Fee | Heirs | After recognition of heirs |
| Lawyer (Peru) | Fee | Heirs | Throughout the procedure |
| Apostille / translation | Fee | Heirs | If foreign documents are involved |
| Alcabala (transfer upon death) | Not applicable | — | — |
| Alcabala (future resale) | Transfer tax | Buyer | If the property is resold |
| Property tax (Predial) | Annual tax | Owner | Every year after transfer |
| Rental income tax | SUNAT tax | Owner | If the property is rented |
What to prepare before you even buy
For a Swiss investor, the best succession is one that has been planned ahead.
- Clarify who will hold the property: individual, couple, joint ownership, structure?
- Determine the owner's tax domicile.
- Draft a will that is consistent with the international situation.
- Ensure that the heirs are aware of the property and the necessary documents.
- Keep purchase deeds, tax receipts, transfer records and SUNARP registrations neatly filed.
- Identify a trusted contact in Peru who can coordinate procedures in the event of death.
- Inform your Swiss tax adviser of the existence of the Peruvian property.
An international property asset must be understandable, provable and transferable.
The role of Swiss Lima Property
Swiss Lima Property is neither a notary, a lawyer nor a tax adviser. Our role is that of a trusted local coordinator, able to:
- Verify that the acquisition file is clean from the outset (title, SUNARP registration, up-to-date documents).
- Connect property owners with qualified Peruvian lawyers, notaries and tax specialists.
- Facilitate document management between Switzerland and Peru.
- Support families when needed, in coordination with the relevant professionals.
We emphasise this point: buying in Lima from Switzerland is not just about choosing the right district or the right price. You also need to organise the ownership, documentation and succession of the property properly.