Return to Peru Law: Coming home after many years abroad
INTRODUCTION
There is a reality that has become increasingly common, particularly after the COVID-19 pandemic: just as many people, mostly young and middle-aged Peruvians, have emigrated abroad, many Peruvians are now also considering returning to the country.
Of Peru’s total population, around 10.30% live outside the country, according to official INEI statistics on migration in Peru. This is equivalent to approximately three and a half million Peruvians living abroad.
Most of them emigrated during periods of major inflationary crises and unemployment, particularly during the 1980s and 1990s. The most common destinations have been, in order of importance: the United States, with 30.40%; Spain, with 16.1%; Argentina, with 12.9%; Chile, with 11.60%; Italy, with 10.30%; and, to a lesser extent, Japan, Canada, Germany and Switzerland.
Many left when they were young. Some built businesses, others developed professional careers, and many others worked as employees or as self-employed workers.
Many formed mixed families and are now married to foreign citizens. Their children were born outside Peru. Their grandchildren speak English, German, French or Italian. And yet, after decades abroad, a deeply human question arises:
Is it time to return?
For some, the answer comes with retirement.
For others, it comes when their parents grow older, because in Latin culture this always carries significant emotional weight, especially when it concerns our parents.
For others, it comes when they realize that quality of life, the climate, the cost of living or simply family ties matter more than the economic benefits of remaining abroad.
But returning is not always simple, especially after decades of living abroad. It is not the same as coming for a month of vacation during the Christmas holidays and enjoying all the delights of Peruvian cuisine until you cannot eat anymore.
When the “return” project begins to take shape after years outside the country, important financial and tax-related questions arise. This is where this article can offer some theoretical and practical guidance:
• Can I bring my belongings?
• Can I import my car?
• Can I bring my work tools?
• What taxes will I have to pay?
• Are there benefits for those who return?
• Is it really worth applying under the Return Law?
It was precisely to answer these questions that the so-called Law on Economic and Social Reintegration for Returned Migrants, Law No. 30001, later amended by Law No. 31827, was created.
I. WHAT IS THE RETURN LAW?
The Return Law is intended to facilitate the return of Peruvian citizens who have lived outside the country for long periods of time, through tax incentives and measures for economic and social reintegration.
It is not merely a customs regulation. Its purpose is to recognize that many Peruvians have built an entire life abroad and that their return involves relocating assets, personal belongings, work tools and business projects.
II. WHO CAN APPLY UNDER THIS LAW?
Currently, the following persons may apply:
Case 1: Peruvians who have lived abroad for at least three (3) consecutive years.
Case 2: Peruvians who have been forced to return for migration-related reasons and who have remained outside Peru for at least two (2) consecutive years.
III. DO VISITS TO PERU CAUSE YOU TO LOSE THE BENEFIT?
Not necessarily. The law allows temporary visits to Peru without losing the status of resident abroad, provided that the limits established by the law are respected and it can be proven that the person’s center of life remained outside the country.
IV. WHAT DOCUMENTS DO I NEED?
Depending on the country where you have lived, the following documents are usually required:
Required Peruvian documents
- Peruvian DNI
- Peruvian passport
- Application to request the benefit, using the corresponding form.
What happens if you do not have them? You should obtain them urgently at the consulate, or through RENIEC and Migraciones if you are in Peru, because you will need them to enter the country as a Peruvian citizen and not as a tourist. They will also be necessary to process the residence status or dual citizenship of your family members.
Foreign immigration documents
- Residence card
- Work permit
- Residence certificate
- Consular certificate.
Proof of residence abroad
- Employment contracts
- Tax returns
- Social security certificates
- Utility bills
- Rental or property contracts.
Migration movement certificate
When the procedure is carried out from Peru, it is usually necessary to prove the applicant’s migration movements.
V. DEADLINES TO APPLY FOR THE BENEFIT
One of the most important changes introduced by Law No. 31827 was the extension of the deadline to apply for the benefits.
Currently, the interested person may express their intention to apply up to 180 days before or after entering Peru.
The original text of the law only provided for a 90-day period.
VI. TAX BENEFITS
This is where we find one of the most attractive aspects of the law.
The regulation establishes a one-time tax exemption for certain goods brought into the country.
VII. HOUSEHOLD GOODS
Household goods may be imported free of taxes up to a value of USD 50,000, according to the legislation currently in force.
What may household goods include?
Furniture, beds, sofas, household appliances, tableware, books, clothing or personal items, and domestic equipment.
In other words, the normal goods that form part of a family home.
VIII. VEHICLE IMPORTATION
One of the best-known benefits is the possibility of importing a motor vehicle with a tax exemption up to a reference value of USD 50,000, according to the reference values established by SUNAT.
Can I bring my European or North American car?
Potentially, yes. But this is where a very important point arises.
The Return Law does not eliminate the general customs restrictions applicable to vehicle imports.
For this reason, aspects such as the following must be analyzed:
- Age of the vehicle
- Technical conditions
- Homologation
- Gas emissions
- Any other customs restriction in force
Can I bring a motorcycle?
Generally, yes, provided that it complies with the customs and technical regulations in force at the time of importation.
IX. WORK EQUIPMENT AND BUSINESS ACTIVITY
This is probably where we find the most powerful benefit for professionals, business owners and self-employed workers.
The law allows the entry of:
- Machinery
- Equipment
- Tools
- Professional instruments.
Up to a value of USD 350,000.00, provided that they are connected to the work, profession or business activity that will be carried out in Peru.
X. MIXED FAMILIES
An increasingly common situation is that of families formed by:
• A Peruvian citizen + a U.S. citizen.
• A Peruvian citizen + a Spanish citizen.
• A Peruvian citizen + an Argentine citizen.
• A Peruvian citizen + a Chilean citizen.
The law directly benefits the returning Peruvian citizen. However, in practice, it greatly facilitates the family’s relocation because it allows the household assets accumulated over many years abroad to be brought into Peru.
XI. IS THERE AN INCOME TAX BENEFIT?
This is where we find one of the greatest areas of confusion.
The answer is: not directly.
The Return Law does not create a general income tax exemption.
The benefits are mainly:
- Customs-related
- Asset-related
- Related to economic reintegration.
XII. WHAT HAPPENS IF I AM RETIRED?
Many Peruvians return after retirement.
For example:
- With a U.S. pension
- With a Canadian pension
- With an Australian pension
- With a Swiss pension.
The Return Law does not, by itself, modify the tax treatment of this income. Therefore, it is essential to analyze:
- Tax residence
- The existence of double taxation treaties
- The origin of the pension
- The legislation of the paying country.
XIII. IS IT REALLY WORTH APPLYING UNDER THE LAW?
Especially when there are:
- Important personal belongings
- High-quality furniture
- Professional tools
- Business equipment
- Vehicles of significant value or with strong emotional value.
The tax exemption can represent very significant savings compared to an ordinary importation.
XIV. WHEN IS IT NOT WORTH IT?
It may not be especially useful when the person will not be bringing goods, does not own a vehicle, does not have professional equipment or plans to move only with personal luggage.
In those cases, the economic benefit may be limited.
XV. FINAL REFLECTION
It represents recognition by the Peruvian State of millions of compatriots who built a life outside the country and who, after many years, are considering returning.
Because returning is never simply a change of address.
It means reconnecting with your own history. It means returning to the places where you grew up. It means hearing once again the familiar sounds of your childhood.
And it also means accepting that we have changed and that Peru has changed as well.
From a strictly economic point of view, the tax benefits can be significant.
From a human point of view, the true value of the Return Law is that it helps make this return possible with fewer obstacles, lower costs and greater legal certainty for those who wish to call Peru home again.
Main legal basis: Law No. 30001, Law on Economic and Social Reintegration for Returned Migrants, as amended by Law No. 31827.
Official SUNAT information on returning to Peru:
https://bienvenidoalperu.sunat.gob.pe/es.retorno-al-peru.html
If you do not yet have accounts in the Peruvian financial system and wish to bring personal belongings or cash into the country, it is important to review the applicable limits and which goods may be brought into Peru.
SUNAT information on declaration of goods:
https://ww1.sunat.gob.pe/app/controladuaneroms/ingresosalida/sicpa/bienvenidoalperu/declaracion/bienes
Frequently Asked Questions About Returning to Peru
Before moving back to Peru, it is important to review not only your travel documents, but also practical issues such as tax residence, foreign pensions, health coverage, bank accounts, family residence status and the importation of personal belongings. The Return Law can help with customs and tax benefits for certain goods, but your full return plan should be reviewed carefully before you move.
Peruvians who have lived abroad for at least three consecutive years may apply. Peruvians who were forced to return for migration-related reasons may also apply if they lived outside Peru for at least two consecutive years.
Yes. Temporary visits to Peru do not necessarily make you lose the benefit, as long as you stay within the legal limits and can show that your main place of residence remained outside Peru.
Yes. Under the Return Law, household goods may be imported free of taxes up to a value of USD 50,000. This may include furniture, beds, sofas, household appliances, tableware, books, clothes, personal items and other domestic equipment.
Potentially, yes. The law allows the importation of one motor vehicle with a tax exemption up to a reference value of USD 50,000. However, the vehicle must still comply with Peru’s general customs and technical rules, including restrictions related to age, emissions, homologation and other import requirements.
Yes. One of the most important benefits of the Return Law is that professionals, business owners and self-employed workers may bring machinery, equipment, tools or professional instruments up to a value of USD 350,000, as long as they are connected to the work or business activity they will carry out in Peru.
Not directly. The Return Law does not create a general income tax exemption. Its main benefits are customs-related, asset-related and connected to economic reintegration. Income tax issues must be analyzed separately, especially in cases involving foreign pensions, business income or tax residence.
In many cases, yes. It can be especially useful if you are bringing valuable personal belongings, quality furniture, professional tools, business equipment or a vehicle. If you only plan to move with personal luggage and do not bring significant assets, the economic benefit may be limited.
Confused about your tax obligations in Peru?
Whether you live in Peru, own property, or earn income locally, understanding your tax responsibilities is essential. Mistakes can lead to fines – but a smart setup can reduce your burden.
Book your private consultation with Sergio Vargas to receive practical, personalized tax advice based on your residency, income, and goals.
The session takes place via Zoom and can be conducted in English or Spanish.
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