Peru · Tax on foreign income
Does Peru tax foreign income? A guide for Americans
Short answer
Pay for work done in Peru is taxed from day one: 30% of the gross for newcomers. You stay a non-resident for your whole first calendar year, so a US pension isn't taxed that year.
What you'd pay, by situation
| Retiree on US income $0 in your first year; later years not settled | In your first calendar year, US Social Security, pensions and US interest aren't taxed in Peru. From the next January, how Peru taxes a US pension isn't settled. Needs review |
|---|---|
| Remote worker paid from the US 30% of pay for days worked in Peru: about $4,400 on 90 days of a $60,000 salary | Pay for work done in Peru is Peruvian income, even from a US employer. Newcomers pay a flat 30% on the gross, with no deductions. |
| Working for a local employer 30% flat in your first calendar year; 8–30% once you're a resident | Local pay is taxed from day one, and you'll need worker residence through your employer. |
Checked against the law The 183-day test, the January start, the 30% rate and the pension rule.
Still being checked How you pay the 30% with no Peruvian employer, and the retiree's later years.
How it works
- Tax residence: more than 183 days in any 12 months, but it only starts on the next January 1.
- What's taxed: non-residents pay only on Peruvian income; residents on worldwide income, at 8–30% after a deduction of about $11,280 on work income.
- Your pension: a pension is Peruvian income only if a Peruvian payer sends it.
- No US tax treaty: you still file a US return every year. Peruvian tax may be credited against US tax; see a tax adviser.
- No Social Security agreement: the US and Peru have none, so US payroll tax continues.
Taxes in Peru, with worked examples → The full Peru guide →
Questions people ask
Does Peru tax US Social Security and pensions?
In your first calendar year, US Social Security, pensions and US interest aren't taxed in Peru. From the next January, how Peru taxes a US pension isn't settled. (Needs review)
Remote worker paid from the US in Peru: what would I pay?
Pay for work done in Peru is Peruvian income, even from a US employer. Newcomers pay a flat 30% on the gross, with no deductions. Ballpark: 30% of pay for days worked in Peru: about $4,400 on 90 days of a $60,000 salary.
Working for a local employer in Peru: what would I pay?
Local pay is taxed from day one, and you'll need worker residence through your employer. Ballpark: 30% flat in your first calendar year; 8–30% once you're a resident.