Inheritance Tax in Peru: What Foreign Heirs Actually Pay
Inheritance Tax in Peru: What Foreign Heirs Actually Pay
Peru does not have an inheritance tax or estate tax. There is no tax on receiving assets from a deceased person, regardless of the estate's value. This puts Peru in a small group of countries — alongside Australia, New Zealand, and Canada — that don't tax inheritance directly.
But "no inheritance tax" does not mean "no costs." Foreign heirs regularly get blindsided by municipal taxes, transfer fees, and capital gains obligations they didn't expect.
What You Don't Pay
- No federal inheritance tax at any amount
- No estate tax assessed on the total estate value
- No gift tax on assets transferred as part of succession
- No alcabala (real estate transfer tax) on property inherited through death — this is specifically exempted for causa de muerte transfers
The alcabala exemption is significant. Normal real estate transfers in Peru attract a 3% transfer tax. Inheritance transfers are 100% exempt, saving heirs thousands on valuable properties.
What You Do Pay
Succession Process Costs
The sucesión intestada itself has costs:
- Notarial succession: S/ 1,000-S/ 3,000
- Judicial succession (if disputes exist): S/ 2,000-S/ 5,000+
- SUNARP registration of succession declaration: S/ 20
- SUNARP property transfer per title: S/ 46 each
Municipal Property Tax (Impuesto Predial)
Inherited properties don't pause their tax obligations. The heirs become immediately responsible for annual property tax payments. If the deceased had unpaid property tax, those arrears plus penalties transfer to the heirs.
Municipal property tax in Peru is relatively low (0.2%-1% of the assessed value), but unpaid years compound quickly.
Capital Gains Tax on Property Sales
Here's where the real tax exposure hits. If heirs inherit property and later sell it, they owe 5% capital gains tax on the difference between the inherited value and the sale price.
Exemptions:
- The property was the deceased's primary residence (casa habitación)
- The property was acquired before January 1, 2004
These exemptions can eliminate the capital gains obligation entirely for long-term expat homeowners.
Tax Status Conversion (Sucesión Indivisa)
Within the first month after death, heirs must register the estate as a sucesión indivisa (undivided succession) with SUNAT using Forms 2119 and 2054. This converts the deceased's tax identification number (RUC) into a temporary estate entity.
Failure to do this on time triggers automatic SUNAT penalties and makes the estate liable for unauthorized use of the deceased's RUC.
Cross-Border Tax Implications
Peru's lack of inheritance tax doesn't affect your home country's obligations:
- US citizens: Must report foreign inheritances exceeding $100,000 on IRS Form 3520, but generally owe no US tax on the inheritance itself
- UK residents: Peruvian assets may be included in the UK estate for Inheritance Tax purposes if the deceased was UK-domiciled
- Canadian residents: Capital gains may apply on deemed disposition at death under Canadian rules
Consult a cross-border tax specialist — the interaction between Peru's tax-free inheritance and your home country's rules requires careful planning.
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The Real Cost of Inheriting in Peru
| Cost Item | Amount | When |
|---|---|---|
| Succession process | S/ 1,000-5,000+ | During probate |
| SUNARP registration | S/ 20 + S/ 46 per property | After succession |
| Property tax arrears | Varies | Immediate |
| Capital gains (if selling) | 5% of gain | On sale |
| Inheritance tax | S/ 0 | N/A |
The Peru Expat Death Guide includes the complete tax timeline, SUNAT form instructions, and a cost calculator for estimating total succession expenses.
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