Expatriate Journal:
"New Law to Attract Foreign Pensioners"

ACAP members should be aware of the Law 28072, recently passed by the Peruvian Congress, which is designed to encourage foreign pensioners to establish residence in Peru.

This law consciously replicates laws in several Central American countries, most notably Costa Rica, where foreign pensioners have enjoyed immigration and tax benefits in order to establish permanent residence in a country with a relatively low cost of living and benevolent climate.

Law 28072 facilitates the entry and permanent residence of foreign pensioners who want to enjoy similar advantages in Peru. It establishes a new category of immigration status in Peru “rentista” which roughly translates as pensioner, for persons who have permanent income from pensions, disability insurance or from other foreign sources totaling least $1,000 a month plus $500 for each dependent. Resident pensioners are prohibited, however, from undertaking income-generating activities in Peru.

Especially attractive are the tax advantages that are afforded pensioners under the new law: all declared foreign income will be free of Peruvian income taxes, and pensioners are also exonerated from all import duties on personal effects that are brought into Peru.

Pensioners will be considered permanent residents, entitled to enter and leave Peru at will. If they should leave Peru for a period of more than six months, however, they would risk losing their resident status. - JR

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