American Expats in Peru

Updated on August 16, 2025.

Peru & U.S. Tax Timeline: Critical Dates for Dual Filers

Managing dual tax obligations between Peru and the United States requires careful attention to two distinct tax calendars. Understanding these timelines is crucial for maintaining compliance and avoiding penalties in both jurisdictions.

The Peruvian tax system operates on a pay-as-you-go basis, with monthly advance payments required for self-employed individuals and businesses. Peruvian residents must make monthly advance payments (pagos a cuenta) calculated as a percentage of gross income or based on the previous year's tax liability. These advance payments create a continuous cycle of tax obligations that must be carefully managed alongside U.S. requirements. The specific filing deadline varies based on the last digit of your RUC (tax ID) number, typically falling between March and April.

Strategic Payment Planning to Avoid U.S. Penalties

The most critical aspect of dual tax compliance for U.S. expats in Peru is understanding that the June 15 automatic extension applies only to filing, not to payment obligations. This distinction has significant financial implications that require proactive planning to avoid unnecessary interest and penalties.

To effectively manage this payment timing challenge, expats should implement a multi-pronged approach. First, conduct a preliminary tax calculation by early March using your Peruvian income documentation and estimated U.S. tax obligations. This projection doesn't need to be perfect but should provide a reasonable estimate of your U.S. tax liability. Consider working with a tax professional familiar with both systems to ensure accuracy in this crucial calculation. As an expat CPA firm, we can help you with these items.

Second, establish a tax reserve account specifically for U.S. obligations. Since Peruvian taxes are paid through monthly advance payments and withholdings throughout the year, you'll need separate liquidity for U.S. payments. Many expats find it helpful to set aside funds monthly, treating U.S. tax reserves as a fixed expense in their budget. This approach prevents the April 15 payment deadline from creating a cash flow crisis.

Third, leverage safe harbor provisions to minimize penalties. If you're unable to calculate your exact tax liability by April 15, you can avoid penalties by paying either 100% of your prior year's tax liability (110% if your prior year AGI exceeded $150,000) or 90% of the current year's tax. This safe harbor payment strategy provides protection while you finalize your actual tax calculations. As an expat CPA firm, we can help you with this.

For those with irregular income or significant Peruvian-source income, consider making quarterly estimated tax payments to the IRS. While Peru handles tax through monthly advance payments and withholdings, the U.S. system may require quarterly payments if your withholding is insufficient. These payments are due April 15, June 15, September 15, and January 15, and help spread the tax burden throughout the year rather than facing a large payment in April.

Currency fluctuations between the sol and dollar add another layer of complexity to payment planning. Since you'll likely earn income in soles but owe taxes in dollars, exchange rate movements can significantly impact your tax liability. Consider using the yearly average exchange rate for income reporting (as permitted by the IRS) to smooth out volatility, and monitor exchange rates when planning your April payment to optimize the conversion timing. As an expat CPA firm, we can help you with these items.

Peru vs. U.S. Tax Systems: Direct Comparison

Understanding the fundamental differences between Peruvian and U.S. tax systems is essential for effective tax planning as an American expat. While both countries tax worldwide income for residents, their approaches to rates, deductions, and income classification vary significantly.

The Peruvian progressive tax system applies rates ranging from 8% on income up to 5 UIT (approximately S/. 25,000 or $6,500) to 30% on income exceeding 35 UIT (approximately S/. 175,000 or $45,000). This compares favorably to U.S. federal rates ranging from 10% to 37%, though U.S. expats may benefit from the Foreign Earned Income Exclusion (FEIE) of $120,000 for 2023 and $126,500 for 2024.

One crucial difference lies in the treatment of investment income. Peru applies a flat 5% tax on capital gains from Lima Stock Exchange transactions, while real estate gains face 5% for residents or 30% for non-residents. The U.S., conversely, distinguishes between short-term gains (taxed as ordinary income) and long-term gains (taxed at preferential rates of 0%, 15%, or 20% depending on income levels). This difference can significantly impact investment strategy for expats managing portfolios across both countries.

The Peruvian Tax System Explained in Detail

The Peruvian tax system presents unique advantages for American expats, particularly through its territorial tax treatment for non-domiciled residents. Peru's approach to income classification, taxation methods, and available benefits differs substantially from the American system, requiring careful study to optimize tax positions and ensure compliance.

Understanding U.S. Income Classifications

Before diving into the Peruvian system, it's essential to understand how the United States classifies and taxes different types of income, as this provides the framework for comparison and planning strategies.

The Peruvian Income Tax Categories

Peru categorizes income into five distinct classifications (rentas), each with specific rules and tax treatment. This categorical approach differs fundamentally from the U.S. system and requires careful analysis to properly report income and claim applicable benefits.

1. Primera Categoría (Income from Real Estate)

This category encompasses income from Peruvian real estate, including rental income and imputed income from property ownership. Peru applies a unique concept where property owners pay tax on actual rental income or a minimum imputed income (6% of the property's assessed value), whichever is higher. This ensures property owners contribute tax even on vacant properties, though primary residences are generally exempt from imputed income calculations.

The effective tax rate for rental income is 5% of gross rental income for individuals, paid monthly. This simplified system eliminates the need for detailed expense tracking but may result in higher taxes for properties with significant maintenance costs. Non-residents face the same 5% rate on Peruvian rental income, making real estate investment relatively tax-efficient.

Additional property taxes: Properties are also subject to municipal property tax (Impuesto Predial) ranging from 0.2% to 1% of assessed value, and transfer tax (Alcabala) of 3% on property purchases exceeding 10 UIT (approximately S/. 50,000).

2. Segunda Categoría (Investment Income)

Investment income in Peru faces relatively favorable tax treatment compared to many countries. Capital gains from Lima Stock Exchange transactions are taxed at just 5%, while dividends received from Peruvian companies are taxed at 5% for amounts up to certain thresholds. Interest income from Peruvian sources faces a 5% withholding tax for residents.

Foreign investment income requires careful attention for domiciled residents, as Peru taxes worldwide income. Non-domiciled residents enjoy territorial taxation, meaning foreign investment income remains untaxed in Peru during their first three years (extendable to six years for certain visa holders). This creates significant planning opportunities for American investors maintaining foreign portfolios.

3. Cuarta Categoría (Independent Professional Services)

Independent professional income covers services provided without an employment relationship, including consulting, freelance work, and professional services. Professionals can deduct 20% of gross income as presumed expenses (up to 24 UIT annually), simplifying tax compliance. The remaining 80% is added to other income and taxed at progressive rates from 8% to 30%.

Monthly withholding of 8% applies to payments exceeding S/. 1,500, creditable against annual tax liability. Non-domiciled professionals face a flat 30% withholding tax on Peruvian-source income, though tax treaties may reduce this rate. The relatively low tax burden and simplified compliance make Peru attractive for independent professionals and digital nomads.

4. Quinta Categoría (Employment Income)

Employment income includes wages, salaries, bonuses, and employment benefits. Peru applies progressive tax rates with automatic withholding by employers, similar to U.S. payroll withholding. Employees receive an annual deduction of 7 UIT (approximately S/. 35,000 or $9,000), significantly reducing taxable income for moderate earners.

Social insurance contributions are mandatory, with employees contributing 13% to either the public system (ONP) or private pension funds (AFP). These contributions are deductible for tax purposes. Additional benefits like health insurance (EsSalud), life insurance, and annual bonuses (gratificaciones) are employer-paid, providing comprehensive benefits without increasing employee tax burden.

5. Tercera Categoría (Business Income)

Business income encompasses earnings from commercial, industrial, and service activities. Peru's corporate tax rate of 29.5% applies to company profits, while sole proprietorships and partnerships face individual progressive rates. Small businesses with revenue under 300 UIT (approximately S/. 1.5 million) can opt for simplified regimes with reduced rates and compliance requirements.

The RUS (Régimen Único Simplificado) offers micro-businesses a fixed monthly payment replacing all taxes, while the RER (Régimen Especial de Renta) provides a 1.5% monthly tax on gross income. These simplified regimes particularly benefit American entrepreneurs establishing small businesses in Peru, though careful structuring is required to maintain eligibility.

Special Tax Regimes for New Residents

Peru offers several attractive tax benefits designed to attract foreign residents, particularly beneficial for American expats with specific profiles and circumstances. The territorial tax system for non-domiciled residents provides exceptional opportunities for tax optimization.

Non-Domiciled Resident Status

Foreign nationals establishing residence in Peru are considered non-domiciled for their first three years, taxable only on Peruvian-source income. This territorial taxation exempts all foreign income, including U.S. salaries, investment income, pensions, and capital gains. The status can be extended to six years for employees of Peruvian companies or investors under certain visa categories. This regime effectively creates a tax holiday on foreign income while enjoying Peru's lower cost of living and favorable lifestyle.

Rentista (Retiree) Visa Tax Benefits

Retirees with the Rentista visa demonstrating $1,000+ monthly passive income enjoy extended non-domiciled status up to six years. Combined with Peru's territorial taxation, U.S. Social Security, 401(k), IRA, and pension income remain tax-free in Peru during this period. After becoming domiciled, foreign pension income faces progressive rates, but the initial tax holiday provides significant savings for early retirement planning.

Inversionista (Investor) Visa Advantages

Investors committing $30,000+ to Peruvian businesses or real estate can extend non-domiciled status to six years. This regime particularly benefits Americans with substantial foreign investment portfolios or business interests, allowing continued tax-free treatment of foreign income while establishing Peruvian operations. The investment can be in real estate, providing both residence benefits and potential rental income taxed at only 5%.

Peruvian Visa Options and Their Tax Implications

Peru offers various visa categories for American citizens, each with distinct requirements, benefits, and tax implications. Understanding these options is crucial for optimizing your tax position while ensuring legal residence status.

Rentista Visa (Retirement/Passive Income Visa)

The Rentista Visa suits individuals with guaranteed passive income of $1,000+ monthly from sources like pensions, Social Security, investments, or rental properties. This visa prohibits employment but allows investment activities and business ownership. Holders maintain non-domiciled status for up to six years, enjoying territorial taxation that exempts all foreign income. The visa requires proof of income, health insurance, and criminal background check, renewable annually with potential for permanent residency after three years.

Tax implications strongly favor retirees, as U.S. Social Security, 401(k) distributions, and pension income remain untaxed in Peru during non-domiciled status. After becoming domiciled, the U.S.-Peru tax treaty prevents double taxation through foreign tax credits. The combination of territorial taxation and low living costs makes Peru exceptionally attractive for American retirees.

Trabajo Visa (Work Visa)

Employment with Peruvian companies requires a Trabajo visa, obtained through employer sponsorship. The visa ties residence to employment but provides a clear path to permanent residency. Workers can extend non-domiciled status to six years if employed by Peruvian companies, maintaining territorial taxation on foreign income. This creates unique planning opportunities for Americans with international income sources.

Employment income faces progressive taxation with automatic withholding, but the 7 UIT annual deduction and relatively low rates create favorable conditions for moderate earners. Social contributions provide comprehensive benefits including healthcare and pension rights. Employer-provided benefits like housing allowances and education assistance may receive favorable tax treatment within limits.

Inversionista Visa (Investor Visa)

Peru's Investor Visa requires a minimum $30,000 investment in Peruvian businesses or real estate, providing residence rights and potential citizenship pathway. Investors maintain non-domiciled status for up to six years, enjoying territorial taxation on foreign income while developing Peruvian investments. The visa permits business management and employment of others, ideal for entrepreneurs.

Investment income from Peruvian sources faces favorable treatment, with 5% tax on rental income and capital gains for residents. Foreign investment income remains untaxed during non-domiciled status, allowing portfolio optimization. Real estate investments provide both visa qualification and income generation, with property appreciation potential in growing markets like Lima and Cusco.

Negocios Visa (Business Visa)

Business visitors can obtain multiple-entry visas valid up to one year, permitting stays up to 183 days annually. This allows maintaining non-resident status while conducting business in Peru. The visa suits consultants, investors, and business owners who don't require permanent presence. Careful day-counting ensures non-resident status, avoiding worldwide taxation.

Tax treatment depends on income source and days present. Business income from Peruvian sources faces 30% withholding for non-residents, potentially reduced by treaty provisions. Foreign income remains untaxed if non-resident status is maintained. This visa provides flexibility for Americans testing Peruvian opportunities before committing to residence.

Student and Other Special Visas

Student visas permit part-time work and provide paths to residence after graduation. Students maintain non-domiciled status during studies, enjoying territorial taxation. Religious, volunteer, and cultural exchange visas offer various tax treatments depending on income sources and treaty provisions. Family reunification visas for spouses and dependents of visa holders generally mirror the principal's tax status.

Peru's Digital Nomad Visa: Rates and Benefits

Peru is developing a comprehensive Digital Nomad Visa framework, though currently, remote workers typically use tourist visas with extensions or business visas. The evolving regulatory environment creates opportunities for location-independent professionals seeking Latin American bases with favorable tax treatment.

Current Options for Digital Nomads

Digital nomads currently enter Peru on 90-day tourist visas, extendable to 183 days annually. This maintains non-resident status, avoiding Peruvian taxation on foreign income. Alternatively, the Negocios (business) visa permits longer stays while maintaining non-resident status through careful day management. Some nomads obtain Rentista visas by demonstrating passive income, enjoying extended territorial taxation benefits.

Tax Treatment and Benefits

Digital nomads maintaining non-resident status (under 184 days annually) avoid Peruvian taxation entirely on foreign-source income. Those establishing residence as non-domiciled residents enjoy territorial taxation for three to six years, exempting foreign employment income. This creates exceptional tax efficiency for Americans working remotely for U.S. companies while enjoying Peru's lower costs and lifestyle benefits.

Banking and payment processing present challenges, as many Peruvian institutions require residence documentation. However, international payment platforms and U.S. bank accounts with foreign transaction fee waivers provide workable solutions. Co-working spaces in Lima, Cusco, and Arequipa offer infrastructure and community for remote workers.

Practical Considerations

Internet infrastructure in major cities supports remote work, with fiber optic widely available in Lima and expanding elsewhere. Cost of living varies significantly by location, with Lima apartments from $400-1,200 monthly, while smaller cities offer lower costs. Private health insurance costs $50-150 monthly, providing comprehensive coverage at private clinics.

Cultural integration benefits include Spanish language immersion, rich historical sites, and diverse geographic regions from Amazon to Andes to coast. Peru's central location facilitates regional travel, with direct flights to major Latin American cities. The growing expat community provides networking and support, particularly in Lima, Cusco, and Arequipa.

A Practical Filing Guide for U.S. Expats in Peru

Successfully navigating dual tax obligations requires systematic approach, careful documentation, and strategic timing. This comprehensive guide walks through the practical steps for maintaining compliance in both jurisdictions while optimizing your tax position.

Step 1: Determine Your Residence Status

Tax residence determination forms the foundation of your filing obligations. Peru considers you resident if you spend more than 183 days in Peru during the calendar year. However, residence doesn't automatically mean domiciled status. Non-Peruvians remain non-domiciled for their first three years (extendable to six), enjoying territorial taxation despite being resident. Registration with Migraciones and obtaining a Carné de Extranjería creates formal residence documentation.

U.S. citizens remain subject to U.S. taxation regardless of residence, but residence status affects available benefits. The Foreign Earned Income Exclusion requires either 330 days outside the U.S. (Physical Presence Test) or bona fide residence in Peru (Bona Fide Residence Test). Treaty provisions help resolve dual residence claims and prevent double taxation.

Step 2: Gather Required Documentation

Comprehensive documentation ensures accurate reporting and supports tax positions. Essential documents include:

Income Documentation: Peruvian employment contracts and pay stubs (boletas de pago), Form PDT (tax withholding certificates) from employers, investment statements from Peruvian and foreign financial institutions, rental agreements and receipts, business income records and facturas, and pension distribution statements. Maintain records in both soles and dollars, documenting exchange rates used for conversion.

Deduction Support: Peruvian health insurance premiums and medical expenses (with facturas), mortgage interest statements for Peruvian properties, charitable contribution receipts from qualified organizations, education expenses for dependent children, and professional expense receipts if self-employed. Peru requires official invoices (facturas) for most deductible expenses.

Tax Payment Records: Peruvian tax payment receipts (PDT forms), U.S. estimated tax payment confirmations, foreign tax credit documentation, and social contribution payment records (AFP/ONP statements). These documents prove taxes paid for foreign tax credit claims and treaty benefit applications.

Step 3: Complete Peruvian Tax Filings

Peruvian tax returns vary by income type and taxpayer category. Most employees with only employment income have taxes withheld completely by employers, eliminating filing requirements. Self-employed individuals and those with multiple income sources file annual returns through SUNAT's Virtual platform by March-April deadlines based on RUC numbers.

Key Peruvian filing considerations include:

Non-domiciled residents report only Peruvian-source income, dramatically simplifying compliance. Domiciled residents must report worldwide income, converting foreign income to soles using SUNAT-published exchange rates. Monthly advance payments (pagos a cuenta) are required for self-employment and business income, calculated as percentage of gross income.

Electronic filing through SUNAT Virtual is mandatory for most taxpayers. Digital certificates (Clave SOL) provide secure access to tax accounts and filing systems. Payment can be made electronically or at authorized banks using código de pago generated by the system.

Step 4: Complete U.S. Tax Filings

U.S. expat tax returns require additional forms and calculations beyond standard domestic filings. Essential forms include:

Form 1040: Report worldwide income converted to dollars using IRS-approved exchange rates. Claim Foreign Earned Income Exclusion (Form 2555) or Foreign Tax Credit (Form 1116), optimizing based on income levels and types. Include all Peruvian income, even if exempt under non-domiciled status.

Form 2555 (Foreign Earned Income Exclusion): Exclude up to $126,500 (2024) of foreign earned income if qualifying under physical presence or bona fide residence tests. Housing exclusion provides additional benefits for qualifying housing expenses exceeding base amounts. Particularly beneficial for non-domiciled residents with no Peruvian tax on foreign income.

Form 1116 (Foreign Tax Credit): Claim credits for Peruvian taxes paid on Peruvian-source income. Limited benefit for non-domiciled residents paying Peruvian tax only on local income. More valuable after becoming domiciled and paying Peruvian tax on worldwide income.

Form 8938 (FATCA Reporting): Report foreign financial assets exceeding $200,000 (year-end) or $300,000 (any time) for single filers. Include Peruvian bank accounts, investment accounts, and business interests. Substantial penalties apply for non-compliance.

FBAR (FinCEN Form 114): Report foreign accounts exceeding $10,000 aggregate value at any point during the year. File electronically by April 15 with automatic extension to October 15. Include all Peruvian financial accounts regardless of tax treatment.

Step 5: Optimize Tax Strategies

Strategic planning throughout the year optimizes your dual tax position:

Frequently Asked Questions for U.S. Expats in Peru

Q: How does the U.S.-Peru tax treaty prevent double taxation?

The U.S.-Peru tax treaty, while not as comprehensive as some treaties, provides important protections against double taxation. It establishes rules for determining tax residence when both countries claim an individual as resident, generally favoring the country of permanent home or center of vital interests. The treaty provides for foreign tax credits in both countries, allowing taxes paid to one country to offset tax liability in the other. It also establishes reduced withholding rates on certain types of income, including 15% on dividends and 15% on interest (versus 30% standard rates). For U.S. Social Security benefits, the treaty generally provides that these remain taxable only in the U.S. for U.S. citizens, providing significant tax savings for retirees.

Q: Can I contribute to both Peruvian and U.S. retirement accounts?

Yes, but coordination requires careful planning. Peruvian pension contributions (AFP or ONP) are mandatory for employees, deducted at 13% of salary. These contributions are deductible in Peru but may not generate U.S. foreign tax credits if you claim the Foreign Earned Income Exclusion. U.S. retirement account contributions (IRA, 401(k)) remain available if you have U.S.-source earned income or elect to include some foreign earned income in U.S. taxable income. During non-domiciled status, maintaining U.S. retirement accounts is particularly advantageous as foreign investment income remains untaxed in Peru. Consider that Peruvian AFP accounts may have U.S. reporting requirements as foreign financial assets.

Q: What happens to my U.S. state tax obligations when I move to Peru?

State tax obligations depend on your former state of residence and steps taken to establish non-residence. States without income tax (Florida, Texas, Nevada, Washington, Wyoming, Alaska, South Dakota) make ideal "home bases" before expatriation. High-tax states like California and New York aggressively pursue former residents, requiring clear evidence of permanent departure including: selling or renting state property, closing state bank accounts, canceling driver's licenses and voter registration, and filing final part-year or non-resident returns. Some states continue taxing certain income regardless of residence, particularly state pension income. Establishing clear non-residence before moving to Peru prevents ongoing state tax obligations.

Q: How are Peruvian real estate investments taxed for U.S. expats?

Peruvian real estate offers favorable tax treatment with only 5% tax on rental income (calculated on gross rents). Property sales by residents face 5% tax on gains, while non-residents pay 30%. Primary residences occupied for at least two years may qualify for exemptions. Annual property taxes range from 0.2% to 1% of assessed value, significantly lower than U.S. rates. For U.S. tax purposes, rental income is reported on Schedule E with depreciation deductions over 27.5 years. Capital gains face U.S. tax with potential $250,000/$500,000 exclusion for primary residences. Foreign tax credits apply for Peruvian taxes paid. The combination of low Peruvian tax rates and U.S. foreign tax credits makes real estate investment particularly attractive.

Q: Should I choose the Foreign Earned Income Exclusion or Foreign Tax Credit?

For non-domiciled residents in Peru, the Foreign Earned Income Exclusion (FEIE) typically provides greater benefit since you pay no Peruvian tax on foreign earned income. Excluding up to $126,500 (2024) from U.S. tax while paying zero Peruvian tax creates exceptional tax efficiency. After becoming domiciled, the Foreign Tax Credit (FTC) may become more valuable as you'll pay Peruvian tax on worldwide income. The FTC allows offsetting U.S. tax with Peruvian taxes paid, potentially eliminating U.S. tax on Peruvian-source income. Many expats use both strategies: FEIE during non-domiciled years, transitioning to FTC after becoming domiciled. Consider that FEIE prevents IRA contributions without other earned income, while FTC preserves contribution eligibility.

Q: How do I handle Peruvian tax on my U.S. investment accounts?

Peru does not impose wealth taxes on financial assets, providing significant advantage over many countries. During non-domiciled status (first 3-6 years), foreign investment income remains completely untaxed in Peru. This allows maintaining U.S. investment portfolios without Peruvian tax consequences. After becoming domiciled, foreign investment income becomes taxable at progressive rates, but foreign tax credits help offset U.S. taxes paid. Consider restructuring investments before becoming domiciled, potentially realizing gains during the non-taxed period. Peruvian financial institutions may have limited investment options for U.S. citizens due to FATCA requirements, making U.S. account maintenance important.

Q: What are the implications of maintaining U.S. LLCs or corporations while living in Peru?

During non-domiciled status, U.S. business entities provide excellent tax planning opportunities as foreign business income remains untaxed in Peru. Single-member LLCs maintain pass-through treatment for U.S. taxes while avoiding Peruvian taxation. C-corporations and S-corporations continue normal U.S. tax treatment without Peruvian implications during territorial taxation period. After becoming domiciled, Peru may tax worldwide business income, including distributions from U.S. entities. Peru's controlled foreign company (CFC) rules are less aggressive than many countries, providing planning flexibility. Consider establishing Peruvian business operations through simplified regimes (RUS or RER) for local activities while maintaining U.S. structures for international operations.

Q: How does Peru tax U.S. Social Security benefits?

U.S. Social Security benefits received by U.S. citizens in Peru generally remain taxable only in the United States under treaty provisions. During non-domiciled status, this is academic as foreign income isn't taxed anyway. After becoming domiciled, the treaty protection prevents Peruvian taxation of Social Security benefits, providing significant advantage for retirees. For U.S. tax purposes, up to 85% of Social Security may be taxable depending on total income. The combination of treaty protection and Peru's territorial taxation for non-domiciled residents makes Peru highly attractive for U.S. retirees, especially those with multiple income sources.

Q: Can I use the Peruvian healthcare system, and how does it affect my taxes?

Peru offers both public (EsSalud) and private healthcare systems. Employees automatically receive EsSalud coverage through employer contributions (9% of salary), providing comprehensive if basic healthcare. Private insurance costs $50-200 monthly depending on age and coverage, fully deductible for Peruvian tax purposes. Many expats combine EsSalud for basic needs with private insurance for complex care. U.S. expats may maintain U.S. health insurance for visits home, though premiums aren't deductible in Peru. The Affordable Care Act individual mandate exemption applies to expats with foreign coverage or spending 330+ days abroad. Healthcare costs in Peru are significantly lower than the U.S., with high-quality private care at fraction of U.S. prices.

Q: What triggers Peruvian tax audits, and how should I prepare?

SUNAT (Peruvian tax authority) uses risk-based selection for audits, focusing on inconsistencies between reported income and lifestyle, large cash transactions or unexplained deposits, frequent international transfers, and discrepancies between tax returns and third-party information. Non-domiciled residents face minimal audit risk due to limited Peruvian tax obligations. Key preparation strategies include maintaining documentation in Spanish with certified translations if needed, working with local tax advisors familiar with SUNAT procedures, keeping proof of non-domiciled status and foreign income sources, and responding promptly to SUNAT requests (typically 5-10 business day deadlines). Audits generally cover the current year plus four previous years. Professional representation is advisable as SUNAT procedures differ significantly from IRS processes.

Why Choose American Expat CPA as Your Tax Partner

Navigating the intersection of U.S. and Peruvian tax systems requires specialized expertise that goes beyond traditional tax preparation. At American Expat CPA, we've built our practice specifically around the unique challenges faced by U.S. citizens living abroad, with particular depth in Latin American tax matters including Peru.

Our Specialized Expertise

Our team combines U.S. tax expertise with deep knowledge of Peruvian tax law and regulations. We maintain relationships with trusted Peruvian tax advisors to ensure seamless coordination of your dual filing obligations. Our professionals stay current with both U.S. tax reform and Peruvian legislative changes, including the territorial tax benefits that can dramatically reduce your tax burden during your first years in Peru.

We understand that every expat situation is unique. Whether you're a retiree taking advantage of Peru's territorial taxation, a professional working for a Peruvian company, or an entrepreneur navigating business taxation in both countries, we develop customized strategies that optimize your specific circumstances. Our approach goes beyond compliance – we proactively identify opportunities to legally minimize your global tax burden while ensuring full compliance in both jurisdictions.

Comprehensive Service Offering

Technology-Enabled Global Service

We've built our practice for the digital age, serving clients across Peru and worldwide through secure, cloud-based systems. Our portal provides 24/7 access to your documents, secure messaging with your tax team, and digital signature capabilities that eliminate the need for physical meetings. We conduct video consultations that accommodate Peru time zones, ensuring convenient access to expert advice regardless of your location in Peru.

Transparent, Value-Based Pricing

We believe in transparent pricing with no surprise bills. Our comprehensive expat tax packages include all necessary forms and schedules, with clear pricing for additional services like amended returns or multi-state filings. Most importantly, our fee structure is designed to deliver value – the tax savings we identify typically far exceed our professional fees, making our services a smart investment in your financial future.

Your Success is Our Mission

Living in Peru as a U.S. expat should be about enjoying the incredible culture, cuisine, and natural wonders – not stressing about tax compliance. We handle the complexity of dual taxation so you can focus on living your Peruvian dream. Our clients consistently save thousands in taxes while gaining peace of mind that their obligations are properly managed.

Whether you're just planning your move to Peru, already established as a resident, or anywhere in between, American Expat CPA provides the expertise and support you need. We understand the expat journey because we specialize exclusively in international tax matters for U.S. citizens abroad.

Don't let tax complexity diminish your Peruvian experience. Contact American Expat CPA today and discover how our specialized expertise can optimize your tax situation, ensure compliance, and maximize the financial benefits of your international lifestyle. Your Peruvian adventure deserves expert tax support – let us be your trusted partner in navigating the complexities of U.S. and Peruvian taxation.