Peru vs. Switzerland: Buying Property in Lima — What Changes

Two markets, two logics

Switzerland has one of the most tightly regulated property markets in the world. The Land Registry (Grundbuch) is reliable and exhaustive. Notaries are public officers whose deeds carry undisputed legal force. Mortgage financing is deep and standardised. Transactions follow well-documented processes, with transfer duties regulated canton by canton.

Lima is not the opposite of this system. Peru has a constitutional framework protecting private property and foreign buyers' rights (Article 71 of the Constitution). SUNARP (Superintendencia Nacional de los Registros Públicos) is a centralised public registry, accessible online, that performs a function comparable to the Grundbuch. But local practices, the market's level of formalisation and the tools available differ on several essential points that a Swiss investor must understand before committing.

The role of the notary

In Switzerland, the notary is a public officer appointed by the canton. Their role is codified by cantonal law. They authenticate the sale deed, draft the constitutive act and carry out registration at the Land Registry. In most cantons, they act for both parties and their impartiality is guaranteed by their status as a public officer.

In Peru, the notary (notario público) is a state-licensed professional who nonetheless practises privately. They are generally chosen by the buyer. Their role is to authenticate documents, verify the parties' identities, carry out preliminary searches at the public registries and forward the notarial deed to SUNARP for registration. The quality and rigour of notaries vary from one professional to another.

An important practical point: the Peruvian notary is not a guarantee in itself. They authenticate a deed; they do not certify the property's economic value or the absence of unregistered issues. Preliminary verification at SUNARP and due diligence on the property itself remain the responsibility of the buyer and their advisors.

Title verification: SUNARP

In Switzerland, the cantonal Grundbuch is the undisputed official reference for property ownership. Its level of completeness and reliability is very high. A Grundbuch registration is close to a legal certainty.

In Peru, SUNARP is the functional equivalent of the Grundbuch. Before any acquisition, the buyer or their lawyer must obtain the Partida Registral of the property (an extract of the property register). This official document lists:

• the identity of the current owner;
• the surface area and description of the property;
• any encumbrances: mortgages, seizures, preventive annotations;
• the history of registered transactions.

The difference with Switzerland stems from a structural reality of the Peruvian market: part of the housing stock is not yet fully formalised in SUNARP, particularly in less premium districts or older properties. Buying a property whose title is not clean at SUNARP represents a very serious risk that no serious foreign investor should take. Title verification is a non-negotiable step.

Bank financing

In Switzerland, the mortgage market is one of the most developed in the world. Banks typically finance up to 80% of a residential property's value (with a minimum 20% down payment under banking self-regulation rules), at rates that have historically been among the lowest in Europe.

In Peru, the situation is radically different for a foreign non-resident investor. Peruvian banks grant mortgage loans to non-residents only in very limited cases, with specific conditions and often rates well above European standards. In practice, the vast majority of foreign investors buy with their own funds.

This has a concrete implication: before looking at specific properties in Lima, a Swiss investor must ensure they have the full financing needed, including acquisition costs, without counting on local bank leverage. Properties in Lima are generally priced in USD, which adds a USD/CHF exchange-rate risk to take into account.

Taxation

In Switzerland, property taxation is precisely regulated by each canton. It includes transfer duties (which vary by canton), imputed rental value, mortgage deductions, and capital gains tax on resale. Tax transparency is very high.

In Peru, the main taxes a foreign investor needs to know are:

• Alcabala: a 3% transfer tax on the purchase price above a threshold indexed to the UIT (Unidad Impositiva Tributaria), paid by the buyer. In 2026, the UIT is set at 5,500 soles (DS 301-2025-EF).
• Rental income tax: for an owner not domiciled in Peru, rental income of Peruvian source may be subject to approximately 5% under SUNAT rules when the tenant is domiciled in Peru; modalities differ if the tenant is not domiciled in Peru. This point remains subject to the owner's tax status, reporting obligations and applicable tax treaties between Peru and Switzerland, and must be validated with a qualified Peruvian tax advisor.
• Property tax (Predial): an annual tax calculated on the property's self-assessed value, paid by the owner. It is generally modest for residential properties.

Peruvian tax rules applicable to non-residents may change. This guide does not constitute personalised tax advice. Consult a tax advisor qualified in Peruvian and Swiss law before any investment. See also our dedicated guide: Swiss taxation after buying property in Peru.

Co-ownership

In Switzerland, condominium ownership (PPE or Stockwerkeigentum) is codified in the Swiss Civil Code (Art. 712a ff. CC). It precisely governs each co-owner's rights and obligations, the management of common areas, owners' meetings and decisions on works. Transparency and formalisation are generally high.

In Peru, condominium buildings are governed mainly by Ley N° 27157 (Ley de Regularización de Edificaciones) and its regulations. Each building in principle has a junta de propietarios (owners' association) and an administrator. The quality of management of these condominiums varies widely in Lima: some buildings are perfectly administered, others have significant unpaid fees or unresolved structural issues.

Before buying into a condominium in Lima, it is recommended to check: the state of the condominium's accounts, any existing shared debts, the quality and responsiveness of the administration, and the general condition of the common areas. This information can be requested from the seller or the building's administrator.

Acquisition costs

In Switzerland, transaction costs vary by canton. They generally include transfer duties (0.5% to 3.3% depending on the canton), notary fees (0.1% to 1% depending on the canton) and Land Registry fees. In Geneva, total costs can be significant.

In Peru, acquisition costs in Lima break down roughly as follows:

• Alcabala: 3% of the purchase price above the UIT threshold (paid by the buyer);
• Notary fees: approximately 0.3% to 1% of the transaction value;
• SUNARP registration fees: approximately 0.3% of the value;
• Real estate agency commission: often paid by the seller, but varies by agreement.

In total, acquisition costs in Lima for a buyer generally range between 4 and 7% of the purchase price. These percentages are estimates based on data available in mid-2026 and may change. A detailed guide on this topic is available on this site: How much does buying an apartment in Lima really cost?

Negotiation and real estate agents

In Switzerland, listed prices are generally not very negotiable in a tight market. Real estate agents are subject to professional obligations and property valuations are precise. Transactions take place in a formalised framework.

In Peru, listed prices often include a margin for negotiation. In certain market segments, it is common to seek a 5 to 15% reduction on the asking price depending on market conditions, the seller's motivation and the property's quality. This practice is accepted and expected.

Real estate agents in Peru: the profession is overseen by an official registry of the Ministry of Housing, unlike Switzerland where the activity remains largely unregulated. It is nonetheless important to verify that the chosen agent is properly registered and to surround yourself with reliable professionals. Through our local network, we connect our clients with recognised agents and support them in verifying the property before any payment.

Distance management

Managing an apartment in Lima from Geneva presents real, concrete challenges: a 7-hour time difference, communicating in Spanish with most local contacts, managing tenants remotely, overseeing maintenance and minor works, local tax compliance with SUNAT, and responsiveness in case of a problem.

These challenges are not insurmountable, but they should not be underestimated. An investor who buys a property in Lima without having organised a local management setup beforehand quickly finds themselves in a difficult position. In practice, a trusted local property management partner is essential from day one.

The importance of a local relay

This is precisely the purpose of Swiss Lima Property. Our role is not to sell you a property or to provide personalised financial or legal advice: it is to help you prepare your project, verify the essential elements, identify competent local contacts (notaries, lawyers, property managers) and coordinate the process between Switzerland and Lima.

A Swiss investor arriving in Lima for the first time without a local relay risks making decisions without a proper understanding of local practices. With a serious advisor who knows both contexts, they have an adapted framework and verified contacts on the ground.

Our role covers analysis, property selection, coordination of the process and introductions. To learn more about our approach: About Swiss Lima Property.