Advantages of investing in Peru

Advantages of investing in Peru

Solid framework for foreign investment

Peru offers a favorable legal framework for foreign investment

  • Non-discriminatory treatment: Foreign investors receive the same treatment as domestic investors.
    Unrestricted access to most economic sectors*.
  • Free movement of capital.
  • Free competition.
  • Guarantee of private property.
  • Freedom to acquire shares from domestic investors.
  • Freedom to access domestic and foreign credit.
  • Access to international dispute resolution mechanisms.
  • Participates in the Investment Committee of the Organization for Economic Cooperation and Development (OECD) – Promotes implementation of the OECD Guidelines for Multinational Enterprises.

Peru is currently in the process of joining this organization.

* Investments requiring authorization: Those located within 50 km of the border and those targeting weapons, ammunition, and explosives. A local majority partner is also required for investments in coastal maritime transport and air transport companies.

INVESTOR

  • Stability of regulations related to non-discriminatory treatment
  • Stability of the Income Tax regime (dividends)
  • Stability of the right to use the most favorable exchange rate available on the market.
  • Stability of the regime of free availability of foreign currency and the right to free remittance of profits, dividends, and royalties.

RECEIVING COMPANY

  • Stability of labor contracting regimes.
  • Stability of export promotion regimes.
  • Stability of the Income Tax Regime.

Requirement: Minimum investment of US$5 million. Minimum investment of US$10 million in mining and hydrocarbons.
Validity: 10 years. For concessions, the term is subject to the contract duration (maximum 60 years).

Regime through which the Peruvian State grants the following benefits:

  • It grants a refund of the Value Added Tax (VAT) throughout the entire pre-production stage of the project (minimum duration of two years).
  • It applies to all sectors of economic activity.
  • The minimum investment is US$5 million, except in agricultural activities, where this requirement is not required. (*)
  • The project may be divided into stages, tranches, or similar.

(*) Exceptionally, until 31.12.2024, projects that contemplate an investment commitment of no less than US$ 2 million will be able to access the Regime.

TAX
APPLICABLE RATE
INCOME
Business Income
29.5%
Agriculture and agribusiness 15%
Dividends
5.0%
Royalties
30.0%
Interest for loans granted abroad
4.9% / 30%
(related companies)
To value added (VAT)
18.0%
To financial transactions
0.005%
Temporary to net assets by excess of S/. 1 000 000
0.4%

Peru has signed and is in force Reciprocal Investment Promotion and Protection Agreements and broader Trade Agreements that include investment chapters; these agreements consolidate our openness policy.

In addition, it has nine agreements in force to avoid double taxation: the Andean Community, Brazil, Chile, Canada, Korea, Mexico, Portugal, Switzerland, and Japan.

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