{"id":125204,"date":"2026-01-09T09:01:44","date_gmt":"2026-01-09T09:01:44","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=125204"},"modified":"2026-01-12T11:32:22","modified_gmt":"2026-01-12T11:32:22","slug":"peru-private-client","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/peru-private-client\/","title":{"rendered":"Peru: Private Client"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-125204","comparative_guide","type-comparative_guide","status-publish","hentry","guides-private-client","jurisdictions-peru"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">EY Private Tax<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/EY_Logo_fondo-blanco-3.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">EY Private Tax<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/EY_Logo_fondo-blanco-3.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Private Client laws and regulations applicable in Peru<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which factors bring an individual within the scope of tax on income and capital gains?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals, intestate successions, and marital partnerships that chose to be taxed as such (hereinafter, individuals) and are domiciled in the country are required to pay taxes in Peru on their worldwide income.<\/p>\n<p>Non-domiciled taxpayers are taxed only on income that qualifies as Peruvian-source income (i.e., sale of shares issued by a company domiciled in Peru, sale of real estate located in the country).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the taxes and rates of tax to which an individual is subject in respect of income and capital gains and, in relation to those taxes, when does the tax year start and end, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Peruvian-source capital gains generated by domiciled taxpayers are subject to a 5% tax rate. It should be noted that individual taxpayers are not subject to tax on the disposal of real property used as their \u201cprimary residence\u201d (<em>casa habitaci\u00f3n<\/em>), nor on the disposal of movable property, except for securities.<\/p>\n<p>The return and payment of this tax must be made in the month following the receipt of the income, according to the monthly obligations schedule published by the Tax Administration, and it is regularized in the Annual Income Tax Return. Through this return, taxpayers may offset capital gains with Peruvian-source capital losses. Losses may not be carried forward to subsequent years under any circumstance.<\/p>\n<p>For transactions carried out by domiciled individuals through the Lima Stock Exchange, a 5% rate applies to capital gains that qualify as Peruvian-source income (i.e., Peruvian equity securities\u2014shares, ADRs and GDRs with Peruvian underlying assets\u2014, and debt instruments issued by Peruvian companies), and a 6.25% rate applies to capital gains that qualify as foreign-source income. In both cases, CAVALI withholds 5% as an advance payment, and the taxpayer must then regularize the tax through the Annual Income Tax Return.<\/p>\n<p>Additionally, income from employment and foreign-source income earned by domiciled taxpayers are taxed under the progressive cumulative scale of the Income Tax (8% to 30%). Domiciled taxpayers are also subject to CFC Rules. These types of income are declared through the Annual Income Tax Return, which is filed between May and June of the year following the fiscal year being reported.<\/p>\n<p>Furthermore, individuals domiciled in the country who obtain capital gains from the sale of foreign securities through the Latin American Integrated Market (MILA) are subject to the reduced 6.25% rate, rather than the progressive cumulative scale of the Income Tax.<\/p>\n<p>Non-domiciled taxpayers who generate capital gains from the sale of real estate located in Peru (other than a primary residence), or from the sale of shares through the Lima Stock Exchange, are subject to a 5% withholding tax. In the case of real estate, a prior procedure to certify invested capital must be carried out before the Tax Administration. If shares are sold outside the Lima Stock Exchange, the applicable tax rate is 30%, and the certification of invested capital procedure must also be carried out beforehand.<br \/>\nIn all cases, the calendar year coincides with the fiscal year, running from January 1 to December 31.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous tax regimes for individuals directly investing in or holding certain types of assets from an income tax or capital gains tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Peruvian-source capital gains are subjected to a preferential tax regime, under which said gains are subjected to a flat 5% tax.<\/p>\n<p>Also, capital gains obtained from the sale of foreign securities carried out through the Latin American Integrated Market (MILA) are not subject to the progressive cumulative Income Tax scale, but rather to the reduced 6.25% rate.<\/p>\n<p>Likewise, individuals are not taxed on the sale of real estate acquired before January 1, 2004, their primary residence, and movable property other than securities.<\/p>\n<p>Interest income at a fixed or variable rate paid on a time deposit held with a Peruvian bank is exempt from tax until December 31, 2026.<\/p>\n<p>Interests from Peruvian banking accounts are exempted from Income tax until December 31, 2026.<\/p>\n<p>Also, income derived from life insurance policies is exempt from Income Tax until December 31, 2026.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals are subject to withholding by the paying entity in the case of Peruvian-source income arising from interest and dividends paid by legal entities domiciled in the country, and capital gains paid resulting from transactions on the Lima Stock exchange. The withholding tax rate in all cases is 5%, except for dividends corresponding to fiscal years prior to 2017, for which rates of 6.8% apply for fiscal years 2015 and 2016, and 4.1% for dividends generated up to December 31, 2014.<\/p>\n<p>In the case of Peruvian-source income received by non-domiciled taxpayers, the withholding agent is the domiciled entity, which must apply the tax rate according to the type of income generated. If the withholding is not made, the non-domiciled taxpayer must comply with paying the tax within the first twelve days of the month following the receipt of the income. If the payment is made thereafter, late payment interest applies, but not penalties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction approach the elimination of double taxation for individuals who would otherwise be taxed in the jurisdiction and in another jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Our legislation allows the use of foreign income tax effectively paid abroad as a credit against Peruvian Income Tax. However, certain limitations apply.<\/p>\n<p>Additionally, Peru has entered into Double Taxation Avoidance Agreements (DTAs) with Brazil, Canada, Chile, Mexico, South Korea, Portugal, Switzerland, and Japan. These agreements allow the application of tax credit methods, exemptions, or reduced withholding tax rates.<\/p>\n<p>Peru has also ratified the DTA with the United Kingdom of Great Britain and Northern Ireland. This agreement will enter effect on January 21, 2026, but it will apply to transactions that occur as from January 1, 2027, for purposes of income tax.<\/p>\n<p>Also, Peru is a country member of the Andean Community. The Andean Community grants the exclusive right to tax to the country of source, while the country of residence treats the income as exempted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a wealth tax and, if so, which factors bring an individual within the scope of that tax, at what rate or rates is it charged, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Currently, Peruvian tax legislation does not provide it.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is tax charged on death or on gifts by individuals and, if so, which factors cause the tax to apply, when must a tax return be submitted, and at what rate, by whom and when must the tax be paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Our legislation does not establish an inheritance tax nor gift tax.<\/p>\n<p>However, donations that have not been carried out by means of a public deed or any other reliable document will be considered as an unjustified increase in wealth and therefore be taxed under the progressive cumulative income tax rates.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax reliefs available on gifts (either during the donor\u2019s lifetime or on death) to a spouse, civil partner, or to any other relation, or of particular kinds of assets (eg business or agricultural assets), and how do any such reliefs apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Peruvian tax legislation does not allow income tax deductions for donations made to family members.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the tax laws encourage gifts (either during the donor\u2019s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, donations are not deductible from income tax.<\/p>\n<p>However, if an individual carries out a donation, the amount donated may be deducted as an expense if such donation is done in favor of national public entities and\/or nonprofit organizations that have one or more of the following purposes: charity, social assistance, education, cultural, scientific, artistic, literary, sports or health, or national heritage. Also, prior to the donation, these entities need to be qualified by the Peruvian Tax Authority as \u201centities authorized to receive donations.\u201d<\/p>\n<p>It is important to point out that the amount donated can only be deducted if the individual has received employment income. The deduction cannot exceed 10% of the sum of their net labor income and their foreign source income. Any excess cannot be carried forward to the following years,<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is real property situated in the jurisdiction taxed, in particular where it is owned by an individual who has no connection with the jurisdiction other than ownership of property there?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Real estate located in Peruvian territory and owned by non-domiciled individuals are subject to the Real Estate Tax (levies the value of urban and rustic real estate and the individual that owns real estate is obliged to pay the tax). If the property is sold, the transaction will be subject to the Alcabala Tax (which taxes the transfer calculated by the local government and is payable by the buyer) and Income Tax (which taxes capital gains under certain conditions).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any specific rules in relation to the taxation of digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As of today, Peruvian tax legislation does not tax income derived from digital assets (i.e. cryptoassets).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are taxes other than those described above imposed on individuals and, if so, how do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Financial Transaction Tax (FTT) applies, among other transactions, to any local or international transfers deposits, debit or credit made on bank accounts of the Peruvian Financial System. The FTT tax rate is 0.005% and it is payable by individuals or legal entities holding relevant accounts, deposits and undertaking taxable transactions. The bank acts as the withholding agent and FTT is deductible as an expense against the employment income for individuals.<\/p>\n<p>Motor vehicle tax levies the property of motor vehicles since the following year of their registration in the Public Vehicle Registry, this tax is imposed only for three years. The individual that owns one or more motor vehicles is obliged to pay the motor vehicle tax. The collection and administration of this tax correspond to the local government where the owner of the vehicle is domiciled. The tax rate is 1% and will apply over the value of the vehicle, which will not be lower than the reference value published annually by the Ministry of Economy. Such value will include an adjustment for antiquity. In any case, the payable amount will not be less than 1.5% of the Tax Unit in force in the taxable year in which the tax is due.<\/p>\n<p>Pleasure boats tax levies the value of pleasure boats. The individual that owns one or more pleasure boats is obliged to pay the pleasure boats tax. The collection and administration of this tax corresponds to the Peruvian Tax Authority. The tax rate is 5% and will apply over the original value of the acquisition or importation of the boat, which will not be lower than the reference value published annually by the Ministry of Economy, such value will include an adjustment for antiquity. The owner of the pleasure boat is obliged to pay annually the resulting tax to the Peruvian Tax Authority.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous special tax regimes for individuals from a wealth tax, inheritance\/estate tax or gift tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not at present.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Before obtaining tax residency in the country, it should be noted that domiciled taxpayers are subject to tax in Peru on their worldwide income, at the rates indicated above. They must also comply with various formal obligations, including register in the RUC (Tax payers registree) and obtaining a Tax ID, as well as filing monthly and annual tax returns. Additionally, there are taxes other than Income Tax, such as the Real Estate Tax and the Motor Vehicle Tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Once an individual has left (and is no longer connected for tax purposes with) the jurisdiction, does the jurisdiction charge any form of exit tax or retain taxing rights over the individual's directly held assets or structures which they created or have an interest in?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not at present.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main rules of succession, and what are the scope and effect of any rules of forced heirship? Do any forced heirship rules apply automatically, or is it necessary for heirs to bring claims to enforce their rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Peru has succession and forced heirship laws regulated by the Civil Code which are mandatory rules and the individuals are not allowed to enter into agreements against such regulations when it is not specifically authorized to do so.<\/p>\n<p>According to the Civil Code, when a person dies, his\/her assets, rights and obligations are transmitted to his\/her successors. Not only does a succession start at the time of the person\u2019s death, but also when the death is presumed based on the absence or disappearance of an individual. It is important to mention that the Civil Code establishes that the heir is only liable for the debts of the inheritance as far as the total value of the assets inherited.<\/p>\n<p>Only one third of the inheritance is not obligatorily reserved for forced heirs. Forced heirs are the deceased\u2019s children, spouse, parents or siblings (or their direct descendants). Certain rules apply depending on the circumstances.<br \/>\nIf an individual at the time of their death has living forced heirs, their inheritance shall be distributed as follows:<\/p>\n<ul>\n<li>\u00a0An individual can only dispose of one third of their assets in favor of individuals who do not qualify as forced heirs. The remaining two thirds must be disposed of in favor of their forced heirs<\/li>\n<li>If the individual does not dispose of its one third portion, the totality of the inheritance shall be distributed to the forced heirs.<\/li>\n<li>These rules can only be overridden for specific grounds of disinheritance established in the Peruvian Civil Code.<\/li>\n<\/ul>\n<p>If an individual has no living forced heirs, he is free to dispose of the totality of his inheritance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Peru, the default marital property regime applicable to civil marriages and de facto unions is the community property regime (<em>sociedad de gananciales<\/em>), under which assets acquired during the marriage are considered community property, except for assets that qualify as separate property (e.g., inheritances) as well as assets acquired before the marriage. Upon the death of one spouse, the community property must be liquidated: debts are paid first, after which 50% of the remaining assets are allocated to the surviving spouse and the other 50% to the forced heirs of the deceased.<\/p>\n<p>Additionally, the Civil Code recognizes the separate property regime (separaci\u00f3n de patrimonios), under which each spouse retains exclusive ownership of 100% of the assets acquired before and during the marriage. Therefore, upon the death of one spouse, 100% of the assets exclusively owned by the deceased enter the estate and must be distributed among the forced heirs (i.e., spouse and children) in equal shares.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors cause the succession law of the jurisdiction to apply on the death of an individual?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The succession rules established by the law of the decedent\u2019s last domicile apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction deal with conflict between its succession laws and those of another jurisdiction with which the deceased was connected or in which the deceased owned property?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the event of such a conflict, the law of the deceased\u2019s last domicile applies, except in the case of real property inherited by succession, for which the law of the country where the property is located must be applied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances should an individual make a Will, what are the consequences of dying without having made a Will, and what are the formal requirements for making a Will?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Through a will, an individual disposes their assets for after his death and arranges their succession, subject to limitations established by law (i.e., the existence of forced heirs and the freely disposable one-third portion). There are ordinary wills (granted by public deed, closed wills, and holographic wills) and special wills, which are allowed only under circumstances specifically provided by law (military and maritime wills).<\/p>\n<p>The formal requirements for any will include being in written form, bearing the date of execution, the name of the testator, and the testator\u2019s signature.<br \/>\nIf no will exist, the legal heirs divide the estate into equal shares, subject to the applicable rules of intestate succession. The cases of instate succession are the following:<\/p>\n<ul>\n<li>An individual dies without leaving a will or the one he\/she has left is declared void, it has expired, or the disinheritance has been revoked.<\/li>\n<li>The will does not indicate an heir.<\/li>\n<li>The mandatory heir died prior the testator, renounces to the inheritance or loses it by indignity or disinheritance and has no descendants.<\/li>\n<li>The voluntary heir or legatee dies before the testator, renounces the inheritance or loses it by indignity without having a substitute heir.<\/li>\n<li>The testator who does not have mandatory or voluntary heirs established in a will.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In a testate succession, the executor appointed by the decedent is responsible for carrying out the will in accordance with the decedent\u2019s instructions, administering and safeguarding the assets, and submitting a management report and final accounting to the heirs at the end of the mandate. In an intestate succession, the heirs appoint an administrator, who is responsible for fulfilling the legal obligations related to the decedent\u2019s assets until the declaration of heirs is issued.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the laws of your jurisdiction allow individuals to create trusts, private foundations, family companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Peruvian law does not expressly regulate or prohibit the creation of foreign trusts, companies, private foundations, or the use of insurance policies for succession planning purposes. However, the figure of the \u201c<em>fideicomiso<\/em>\u201d (trust agreement under Peruvian law) is regulated and is used for asset management and succession purposes.<\/p>\n<p>The structures most used for succession planning include:<\/p>\n<ul>\n<li>\u00a0Local trusts (fideicomisos)<\/li>\n<li>Irrevocable foreign trusts.<\/li>\n<li>Acquisition of life insurance policies (private placement life insurance).<\/li>\n<li>Advances of inheritance to forced heirs.<\/li>\n<li>\u00a0Incorporation of foreign entities under a joint tenancy with rights of survivorship agreement.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are these structures constituted and what are the main rules that govern them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Local trusts are regulated by the Superintendency of Banking, Insurance and Pension Funds Administrators (SBS) through the General Law of the Financial and Insurance System and the Regulations on Trusts and Fiduciary Service Companies.<\/p>\n<p>In Peru there are different types of local trusts, such as \u201cadministration trust,\u201d \u201cbanking trust,\u201d \u201csecuritization trust,\u201d \u201cwarranty trust,\u201d \u201ctestamentary trust,\u201d among others. Each of these has its own rules regarding the tax consequences of its establishment.<\/p>\n<p>A local trust may be structured as a revocable or irrevocable trust. The trust may establish clear rules regarding how the assets must be managed and distributed, including after the settlor\u2019s death.<\/p>\n<p>A trust is created when an individual (the settlor) transfers assets or rights to a fiduciary entity (the trustee) for it to manage them according to specific instructions and for the benefit of a third party (the beneficiary) or the settlor himself. The trust property constitutes a separate and autonomous estate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the registration requirements for these structures and what information needs to be made available to the relevant authorities? To what extent is that information publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The trust is formalized through an agreement between the settlor and the fiduciary company, which must be registered with the National Superintendency of Public Registries and must include the fiduciary transfer of the assets as well as a detailed description of them.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax treatment will depend on the specific circumstances of each case; however, in general terms, the following can be stated:<\/p>\n<ul>\n<li>Peruvian trusts (<em>fideiomisos<\/em>) are disregarded for Peruvian Income Tax purposes.<\/li>\n<li>Beneficiaries will not be subject to Income Tax insofar as they receive benefits in the form of an inheritance or a donation.<\/li>\n<li>Trustees, merely by acting in such capacity within a structure, are not subject to Income Tax. However, they will be taxed on the remuneration they receive for performing their fiduciary functions.<\/li>\n<li>Settlors will be subject to tax at the time they contribute, to the extent that the assets are transferred in a definitive and irrevocable manner. If the transfer is temporary and revocable, no tax impact will arise for them. Additionally, depending on the structure implemented, the CFC Rules may apply.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign trusts, private foundations, etc recognised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Our local legislation does not contain specific provisions regarding trusts or other entities established abroad; however, they are legally recognized in our country.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The applicable tax treatment will depend on the specific circumstances of each entity.<\/p>\n<p>In some cases, they may be subject to CFC Rules. If so, passive income generated by such entity would be attributed to the individual who owns or controls it, and such income would be treated as foreign-source income subject to the progressive cumulative Income Tax scale. It is important to note that the income is attributed regardless of whether an actual distribution is made.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the settlor, founder, or beneficiary of the foreign entity has creditors, such creditors may not access the assets transferred to the entity to satisfy such debts or claims, insofar as these assets form part of an autonomous estate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What provision can be made to hold and manage assets for minor children and grandchildren?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The assets of minors are managed by the parents exercising parental authority (<em>patria potestad<\/em>), with the limitation that they may not dispose of such assets, such as selling or mortgaging them, without judicial authorization. In certain circumstances, a guardian is appointed for minors who will be responsible for the administration of their assets.<\/p>\n<p>As an alternative, it is possible to transfer the assets to a trust to be managed for the benefit of the minors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is advisable to draft documents and take proactive measures in anticipation of possible mental incapacity. Peruvian law allows for the advance designation of supporting persons through the granting of powers of attorney and\/or the execution of mandate contracts, to ensure that the wishes of the incapacitated individual are fulfilled.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most common structures created for charitable or philanthropic purposes are non-profit associations and\/or foundations. In both cases, formal registration with the public registry is required.<\/p>\n<p>If these entities meet certain requirements, such as being authorized by the Tax Administration, donations made in their favor will be considered a deductible expense for the donor. Likewise, the income generated by such entities, provided certain conditions are met, will not be subject to Income Tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the jurisdiction's approach to information sharing with other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To date, Peru has established the necessary framework for financial information exchange with a total of 105 jurisdictions (84 reciprocal jurisdictions and 21 non-reciprocal jurisdictions). It should be noted that the exchange of information with each jurisdiction has been in force regarding specific periods.<\/p>\n<p>Although the United States is not part of the Common Reporting Standard &#8211; CRS, a Tax Information Exchange Agreement has been in place between the U.S. and Peru since August 18, 1992. Peru also exchanges information with countries with which it has an in-force Double Taxation Agreement, based on the respective information-exchange clause.<\/p>\n<p>Finally, it is important to note that Peru aims to become a member of the Organization for Economic Co-operation and Development (OECD) and, therefore, seeks to comply with the international standards required for accession.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What important legislative changes do you anticipate so far as they affect your advice to private clients?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At present, there are no bills proposing substantial legislative changes that would affect the taxation of individuals in Peru.<\/p>\n<p>It should be noted, however, that in August 2025 a parliamentary group introduced a bill proposing the creation of the \u201cLuxury Goods Tax\u201d with the aim of increasing fiscal revenue. Nevertheless, it is worth recalling that past proposals to implement a wealth tax and\/or a tax on large fortunes were rejected by the Ministry of Economy and Finance due to their onerous implementation. Accordingly, it is likely that this bill will follow the same course.<\/p>\n<p>In April 2026, General Elections will take place in the country, and the new government taking office on July 28, 2026, may propose new legislative measures. However, we consider that such changes are unlikely in the short term, particularly considering that any amendment on the Income Tax Law will be applicable as from January 1 of the following year in which the law is passed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4384<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/125204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=125204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}