Peru

Tax advantages

• Territorial taxation: only Peruvian-source income is taxed, leaving foreign income untouched.
• No wealth tax or inheritance tax on assets held abroad.
• No capital gains tax on foreign investments.
• Tax treaties with select countries to avoid double taxation.

Tax disadvantages

• Peruvian-source income is taxed at progressive rates up to 30%, which can be high for local business profits.
• Complex tax compliance for those with mixed local and foreign income streams.
• Limited treaty network compared to European jurisdictions.

Residency advantages

• Low investment threshold of $25,000 for residency-by-investment.
• No physical stay requirement in the first year of temporary residency.
• Path to permanent residency after two years and citizenship after five years of permanent status.
• Dual nationality permitted.
• Straightforward application process with clear requirements.

Residency disadvantages

• No citizenship-by-investment program; naturalization requires language proficiency and integration tests.
• Limited global connectivity from Lima’s airport, especially to Asia.
• Bureaucratic delays possible in residency processing.
• Temporary residency must be renewed annually, adding administrative burden.

Living quality

Life in Lima’s upscale districts offers a European-style urban experience with ocean views, fine dining, and private clubs. Top international schools and private security services ensure safety and education for families. The mild coastal climate allows year-round outdoor activities, while exclusive beach and country clubs provide social prestige. However, general security challenges outside affluent areas require vigilance.

Best for

• Peru suits HNWIs seeking a low-cost residency foothold in South America with territorial tax benefits, particularly those with foreign income and no immediate need for a second passport. It also appeals to families valuing international schools and a culturally rich, secure urban lifestyle in Lima’s elite neighborhoods.