Peru expat tax 2026: 183-day rule and rates

Peru has one of the strangest residence rules in the Americas. You can spend more than half a year in the country and still be taxed only on your Peruvian income, because becoming resident only counts from the next 1 January.

This guide covers Peruvian personal tax for people moving to or living in Peru in 2026: the 183-day domicile rule and its delay, the 8% to 30% income tax scale, freelance fees, pensions, crypto, social security and the routes for long stays.

The key question is simple. Are you domiciled in Peru for the tax year yet? Until you are, foreign income stays outside Peruvian tax.

What's changed: the tax unit (UIT) that sets every band and allowance rose to S/ 5,500 for 2026, from S/ 5,350, so the tax-free allowance on work income is now S/ 38,500. The income tax rates themselves haven't changed since 2015. A new double tax treaty with the UK is in force and applies from 1 January 2027. Under the pension reform, joining a pension scheme becomes compulsory from 1 June 2027. Law 32445 removed the planned compulsory contributions for the self-employed from 2028, so for them paying in stays voluntary. The exemption for interest on bank deposits currently runs to 31 December 2026.

📋 Peru tax at a glance for 2026

Domicile: why residence starts a year later

Peru doesn't talk about tax residence. It uses the word "domiciled", and the test for foreigners is a day count with a twist.

Image 1 — 183 days makes you resident from next 1 January

You become domiciled once you've lived or stayed in Peru for more than 183 calendar days in any period of 12 months. The 12 months don't have to match the calendar year.

The twist is timing. Peru decides whether you're domiciled at the start of each tax year, and any change during the year only takes effect from the next tax year. So if you arrive in January 2026 and pass 183 days in July, you're still non-domiciled for all of 2026. You become domiciled on 1 January 2027.

Until then, you're taxed only on Peruvian-source income, at flat rates:

• Work income in Peru: 30%, whether it's a salary or fees.

• Dividends from Peruvian companies: 5%.

• Interest from a Peruvian business: 4.99%, where you're not related to the payer.

Your foreign salary, pension, dividends and gains aren't taxed in Peru at all while you're non-domiciled. That makes your first months, and sometimes well over a year, a useful window to sell foreign investments before worldwide taxation starts.

👉 SUNAT: Income Tax Law, articles 7 and 8 on domicile (in Spanish)

👉 SUNAT: Income Tax Law, articles 52-A to 56 on tax rates (in Spanish)

When you stop being domiciled in Peru

You lose Peruvian domicile when you take up residence in another country and leave Peru. In that case, the change takes effect when you leave, not at the next 1 January.

If you can't show you're resident somewhere else, you stay domiciled until you've been away from Peru for more than 183 days in any 12 months. That change then takes effect from the following tax year. Keep proof of your new residence, such as a tax residence certificate, so you can leave cleanly.

Peru has no exit tax for individuals.

Income tax rates for 2026

The tax year is the calendar year. Once you're domiciled, your salary, freelance fees and foreign income are added together and taxed on one scale, set in UIT. One UIT is S/ 5,500 in 2026.

Peru income tax rates for 2026 (work and foreign income)

Source: Income Tax Law article 53 (rates unchanged since 2015) and SUNAT's UIT table for 2026.

Before the scale, you deduct a fixed 7 UIT (S/ 38,500) from your salary and freelance income, with no receipts needed. You can also deduct up to 3 UIT (S/ 16,500) more for certain spending in Peru: 15% of rent, hotel and restaurant bills, 30% of fees paid to self-employed professionals, and EsSalud contributions for household workers. Foreign income doesn't get the 7 UIT allowance.

👉 SUNAT: UIT values, S/ 5,500 for 2026 (in Spanish)

👉 SUNAT: individual income tax return guide, with the 7 UIT and 3 UIT deductions (in Spanish)

Worked example

• You're domiciled in Peru and earn a salary of S/ 345,000 (about US$100k) in 2026.

• You deduct 7 UIT (S/ 38,500), leaving S/ 306,500 on the scale. Your income tax is S/ 56,475.

• You pay 13% to the state pension (ONP), which is S/ 44,850.

Your all-in bill is about S/ 101,325, or 29% of your salary. Income tax alone is about 16%. If you claim the full 3 UIT of extra deductions, your tax falls by S/ 4,950.

We use S/ 3.45 to the US dollar, close to the Central Reserve Bank (BCRP) banking system selling rate of S/ 3.432 on 15 October 2026.

Freelancing in Peru

Freelance fees are "fourth category" income. You deduct 20% of your gross fees, up to 24 UIT (S/ 132,000), then the 7 UIT allowance, and the rest goes on the same 8% to 30% scale as salaries.

• Withholding: businesses that pay you deduct 8% from each fee receipt above S/ 1,500.

• Monthly payments: in some cases you pay 8% of your fees yourself each month, less anything withheld.

• Suspension: if you expect to earn no more than S/ 48,125 in 2026, you can ask SUNAT to stop the withholding and monthly payments.

On fees of S/ 345,000 (about US$100k), your taxable income is S/ 237,500 and your tax is S/ 36,775, or about 10.7%. There's no compulsory pension or health contribution for the self-employed in 2026, which is why freelancing costs so much less than a salary here.

👉 SUNAT: tax for independent workers, the 8% withholding and monthly payments (in Spanish)

👉 SUNAT: suspending withholding, 2026 limits (in Spanish)

Crypto, investments and pensions

How is crypto taxed in Peru? There's no specific law, and SUNAT hasn't published guidance. Under the Income Tax Law, a private individual's gain on movable assets other than shares, bonds and other securities isn't a taxable capital gain. That points to no tax on occasional crypto sales. Frequent trading could be treated as a business, so keep records.

Investment income is taxed differently depending on where it comes from:

• Peruvian dividends: 5%, withheld by the company.

• Peruvian rent and gains on shares and securities: 6.25% of the net amount. Losses on shares can only be set against gains in the same year.

• Interest on bank deposits: exempt until 31 December 2026, unless the exemption is extended.

• Foreign dividends, interest and gains: added to your work income and taxed on the 8% to 30% scale. Foreign gains on shares only get the 6.25% rate if they're sold through the Lima Stock Exchange or the regional MILA market.

• Your own home: selling the home you live in isn't a taxable gain.

Losses from low-tax or no-tax countries are ignored, and an overall foreign loss can't be used against other income.

Pensions are good news. Life annuities and pensions that come from work, such as retirement, survivor and disability pensions, are outside Peruvian income tax. The law doesn't limit this to Peruvian pensions, but SUNAT hasn't published guidance on foreign ones, so check before you rely on it.

Peru has no inheritance tax, no gift tax and no wealth tax.

👉 SUNAT: Income Tax Law, articles 18 and 19 on pensions and exempt interest (in Spanish)

👉 SUNAT: Income Tax Law, article 2 on capital gains (in Spanish)

👉 SUNAT: how foreign income is taxed (in Spanish)

Social security

Employees in Peru pay into a pension, and employers pay for health cover:

• Pension: 13% of your pay to the state system (ONP), or a contribution to a private pension fund (AFP) if you choose one instead.

• Health: 9% of your pay to EsSalud, the social health insurer, paid by your employer.

The pension system is being reformed under Law 32123. Joining a pension scheme becomes compulsory for people turning 18 from 1 June 2027, and adults not in any scheme then have 12 months to choose one. Compulsory contributions for the self-employed, planned from 2028, were removed by Law 32445, so they can pay in voluntarily but don't have to.

👉 SUNAT: the 13% ONP pension contribution (in Spanish)

👉 SUNAT: the 9% EsSalud contribution (in Spanish)

👉 El Peruano: Supreme Decree 061-2026-EF, contributions by the self-employed now voluntary (in Spanish)

👉 ONP: the pension reform regulation and its start dates (in Spanish)

Double tax treaties

Does Peru have double tax treaties? Yes, but not many. The Ministry of Economy and Finance lists 9 bilateral treaties in force: Chile, Canada, Brazil, Mexico, South Korea, Switzerland, Portugal, Japan and the UK. The UK treaty applies from 1 January 2027. Peru is also covered by the Andean Community agreement with its Andean neighbours and the Pacific Alliance tax convention. There's no treaty with the United States.

👉 Peru Ministry of Economy and Finance: double tax treaties in force (in Spanish)

Long stays and the digital nomad status

Peru added a "digital nomad" status to its migration law in November 2023. It's for foreigners employed remotely by a company based outside Peru, who don't earn Peruvian-source income. It allows a stay of up to 365 days and can be extended. The conditions were left to regulations, and we couldn't find a Migraciones application procedure for it. Check with Migraciones before you plan around it.

The route that works today for people with passive income is the rentista residence. You need a pension or permanent income of at least US$1,000 a month, net, and you apply online from outside Peru.

Neither route has a tax exemption. Stay more than 183 days in 12 months and you're domiciled from the next 1 January.

👉 El Peruano: Legislative Decree 1582, creating the digital nomad status (in Spanish)

👉 Migraciones: the new digital nomad status (in Spanish)

👉 Migraciones: applying for rentista residence (in Spanish)

Who is Peru good for?

How does Peru compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including compulsory pension and health contributions.

☑️ Who is Peru good for? Tax ratings for expats in 2026

Filing and deadlines

Employees have tax withheld through payroll, and many people with only a salary don't need to file. You must file an annual return if you have tax left to pay, for example on freelance fees or foreign income. Non-domiciled people don't file an annual return.

Returns are filed online with Form 709. For the 2025 tax year, the deadlines ran from 27 May to 10 June 2026, depending on the last digit of your taxpayer number (RUC). SUNAT sets the 2026 dates in a new calendar each year, usually for May and June 2027.

👉 SUNAT: individual income tax return guide and deadlines (in Spanish)

Frequently asked questions

When do I become tax resident in Peru?

A foreigner becomes domiciled after more than 183 calendar days in Peru in any 12 months. The change only takes effect from the start of the next tax year, so you're taxed as non-domiciled until the following 1 January.

What are the income tax rates in Peru in 2026?

Work and foreign income is taxed at 8% up to 5 UIT (S/ 27,500), then 14%, 17% and 20%, with 30% above 45 UIT (S/ 247,500). The first 7 UIT (S/ 38,500) of work income is tax free. Non-domiciled people pay 30% on Peruvian work income.

How are freelancers taxed in Peru?

You deduct 20% of your fees, up to 24 UIT, and then 7 UIT, and pay 8% to 30% on the rest. Clients withhold 8% from receipts above S/ 1,500. There's no compulsory pension contribution for the self-employed, as Law 32445 dropped the plan to require one from 2028.

Is a foreign pension taxed in Peru?

The Income Tax Law puts pensions that come from work, such as retirement and disability pensions, outside income tax, and it doesn't limit this to Peruvian pensions. SUNAT hasn't published guidance on foreign pensions, so check your case. Peru has no inheritance tax.

How is crypto taxed in Peru?

There are no crypto rules and no SUNAT guidance. A private individual's gains on movable assets other than securities aren't taxable capital gains, so occasional crypto sales are likely untaxed. Frequent trading could be treated as a business.

Does Peru have a digital nomad visa?

A digital nomad status was added to Peru's migration law in 2023, for up to 365 days and renewable, but we couldn't find an application procedure. The rentista residence, for a pension or permanent income of at least US$1,000 a month, is the working alternative.

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