The purchase price: starting point, not final budget
In Lima, properties in sought-after districts (Miraflores, San Isidro, Barranco, Magdalena del Mar, San Miguel) are generally denominated in US dollars (USD). This is the reference currency of the formal Peruvian property market.
For a Switzerland-based investor, this implies exposure to CHF/USD exchange rate risk: if the Swiss franc strengthens against the dollar, the CHF value of your investment decreases proportionally. This risk is known and manageable, but must be factored in from the planning stage.
The purchase price is the largest line item, but you should systematically budget an additional 10% to 15% to cover all fees, taxes and set-up costs. The rest of this guide details each component.
The Alcabala: the unavoidable transfer tax
The Alcabala is the Peruvian tax on property transfers. It is the sole responsibility of the buyer.
Rate: 3% of the transfer value (or the cadastral self-assessment value if higher), after deducting the first 10 exempt UIT (Tax Units).
- UIT 2025: S/ 5,350 → exemption = S/ 53,500 ≈ USD 14,300
- UIT 2026: S/ 5,500 → exemption = S/ 55,000 ≈ USD 14,700
It is collected by the SAT (Lima Tax Administration Service), typically at the notary's office at the time of signing. Payment generates an official receipt to keep carefully.
Worked example — Alcabala
For a property at USD 120,000 ≈ S/ 456,000 (indicative rate S/ 3.8/USD):
Alcabala = 3% × (456,000 − 53,500) = 3% × 402,500 ≈ S/ 12,075 ≈ USD 3,180
That is approximately 2.6% of the purchase price.
Note: for the purchase of a new property from a developer (primera venta), specific rules may apply. Check with the notary at the time of the transaction.
Notary and public deed
In Peru, the notary plays a central role in a property transaction: they draft and authenticate the Escritura Pública de Compraventa (notarised deed of sale), which constitutes the legal title for the transfer of ownership.
Unlike the Swiss system where the notary is a cantonal public official, the Peruvian notary is a private professional freely chosen by the parties (typically the buyer). Choosing a trustworthy notary, recommended by your lawyer or local representative, is important.
Estimated cost: from 0.3% to 1% of the sale price depending on the notary and the complexity of the file. For a property at USD 120,000, that represents between USD 360 and USD 1,200.
Land registry registration (SUNARP)
After signing the Escritura Pública, the notary registers the transfer with the Superintendencia Nacional de los Registros Públicos (SUNARP), the Peruvian equivalent of the land registry. This step is essential: it makes your title enforceable against third parties and is your ultimate legal protection against any potential claims.
Estimated cost: from 0.5% to 1% of the sale price. For a property at USD 120,000: between USD 600 and USD 1,200.
The registration period varies from a few days to several weeks depending on the registry workload. Fees may vary depending on the urgency of the procedure.
Lawyer, due diligence and proxy
For a non-resident foreign buyer, using a Peruvian property lawyer is strongly advised — indeed essential. Their role includes:
- Verifying the Partida Registral (SUNARP extract) to ensure there are no encumbrances, mortgages, disputes or non-consenting co-owners;
- Checking the seller's situation (legal capacity, absence of proceedings);
- Drafting or reviewing the Minuta de Compraventa (preliminary contract);
- Supporting you through to the final signing.
Estimated cost: varies depending on the lawyer and the complexity of the file. Generally budget between USD 500 and USD 1,500 for a standard transaction.
If you cannot be in Lima at the time of the transaction, a proxy (notarised power of attorney) can sign on your behalf. The cost of the Swiss notarised power of attorney plus apostille adds a few hundred CHF.
International transfer and exchange costs
To transfer funds from Switzerland to Peru, several costs come into play:
- SWIFT transfer fees: typically between CHF 20 and CHF 80 per transfer depending on your Swiss bank.
- CHF/USD exchange margin: traditional banks often apply a margin of 0.5% to 1.5% on currency conversions. On USD 120,000, this can represent USD 600 to USD 1,800. Specialist platforms (Wise, Revolut Business) offer more competitive margins.
- Receipt delay: allow 2 to 5 business days for funds to arrive in the Peruvian bank account of the seller or notary.
Opening a USD bank account in Peru (or placing funds in a fiduciary account) simplifies cash flow management and avoids additional conversions. Your lawyer or notary will advise on the best local practice.
Furnishings and set-up (for rental investment)
If your aim is to rent out the property — short or long-term — you will generally need to furnish and equip the apartment before listing it. In Lima, furnished rental apartments command significantly higher rents, particularly for expatriate and business traveller audiences.
Indicative budget for an apartment of 40 to 70 m²:
- Basic furniture (sofa, bed, table, chairs, storage): USD 3,000 to USD 6,000
- Appliances (fridge, hob, washing machine, microwave): USD 1,500 to USD 3,000
- Kitchen and bedding kit (crockery, cutlery, sheets, towels): USD 500 to USD 1,500
- Décor and finishing touches for short-term rental: USD 500 to USD 2,000
Indicative total: from USD 5,500 to USD 12,500, depending on the standard aimed for and the floor area. For a premium Airbnb apartment, the budget may exceed USD 15,000.
Our partner Havenbnb Peru can assist with the initial apartment set-up.
Ongoing property management fees
If you entrust the management of your property to a local professional — which is essential for a Switzerland-based investor — budget for ongoing management fees.
- Long-term management: generally 8% to 12% of gross rents collected.
- Short-term management (Airbnb / platforms): from 15% to 25% of gross income depending on the service level (concierge, cleaning, linen, check-in/out included or not).
These fees are deductible from rental income for Peruvian tax purposes (confirm with a contador). They should also appear in your Swiss tax return as a property expense.
Cash reserve
Even with good management, unexpected costs arise. Set aside a cash reserve to cover:
- Maintenance and minor repairs: plumbing, painting, broken appliances. Budget USD 500 to USD 1,500 per year depending on the condition of the property.
- Vacancy periods: even in a dynamic market, a few weeks without a tenant between two contracts is likely. Set aside 1 to 2 months of rent per year.
- Building maintenance charges (cuotas de mantenimiento): these range from USD 50 to USD 300/month depending on the building (security, pool, lift, gardens). Confirm before purchase.
- Property tax (Predial): paid annually to the SAT, generally modest for a standard apartment (a few hundred soles per year).
- Home insurance: not widespread in the Peruvian rental market but recommended; USD 200 to USD 500/year depending on the coverage.
In practice, a reserve of 3% to 5% of the purchase price set aside before the rental launch will allow you to approach the first year comfortably.
Summary — Worked example at USD 120,000
The amounts below are indicative and based on the ranges presented in this guide. They must be confirmed by a local professional.
| Item | Estimate (USD) |
|---|---|
| Purchase price | 120,000 |
| Alcabala (≈ 2.6%) | 3,180 |
| Notary (0.5%) | 600 |
| SUNARP (0.7%) | 840 |
| Lawyer / due diligence | 800 |
| Transfer and exchange costs | 700 |
| Acquisition costs (total) | ≈ 6,120 (5.1%) |
| Furnishings (if rental) | 7,000–12,000 |
| Cash reserve (4%) | 4,800 |
| Total budget to plan for | ≈ 138,000–143,000 |
Indicative USD/CHF and USD/PEN exchange rates at time of writing. Update before making any decision.