Rachel in Peru!

Pretty much anything north of Lima is Northern Peru. Even the northern parts of the department of Lima are called el Norte Chico (the little North).

Cities such as Chiclayo and Trujillo are becoming very popular retirement destinations for expat-pensioners. The weather is beautiful year round, the food is excellent (the North is reputed to have the best Ceviche), and the cost of living is relatively lower the further north you go compared to the capital of Lima. Another plus is that the major cities of North Peru have also benefited from the country’s rapid economic growth. What you can find in Lima, modern shopping centers, industry, agriculture, healthcare, tourism, major festivals etc., you can find in Northern Peru.

>> For an excellent blog on life in Chiclayo visit Chiclayogringo.blogspot.com <<

The downside to living in the North is that airfares are expensive when factoring in the average Peruvian income, and trips to migraciones (Peruvian Immigration) or your country’s respective embassy in Lima may be required more than once per year. Buses can take anywhere from 12-24 hours to reach Lima and tickets can be very pricey during government mandated extended weekends and national holidays. Generally, though, the lifestyle is more laid back in North Peru, and the Mañana attitude is even more Mañana in these regions. Finally, the cities of Northern Peru have reputations for their higher rates of crime (mostly petty theft).

However, the cons aside, North Peru (Chimbote, Trujillo, Chiclayo, Piura, Talara, Mancora, Tumbes) offers expat-pensioners a genuine “retirement abroad” experience. No expat enclaves, no first world bubbles that you find in Mexico or Costa Rica, and certainly no high prices to go with it. If you have ever wanted to learn Spanish, you will learn it! North Peru is perhaps the world’s best kept secret for retirees.

So, if you are looking to retire in Peru or live there here is what you need to know:

• You will need to apply for residency or a pensioner’s visa. If applying for the “Rentier” (pensioner) visa, then you will need to have proof of your monthly retirement income.
• You can retire in Peru as a “tourist,” but you will need permission to sign contracts from the government and your stay will be limited up to 183 days per each entry stamp (which you must request). If you overstay your tourist visa, you will be fined $1 per day.
• Unlike other Latin American destinations (Mexico), Foreigners are not restricted from buying beach front property (again, unless you have a visa, you will need to obtain a government permission to sign contracts).
• If you plan to drive (which I don’t recommend), then be sure to apply for your international license (from your home country) before you leave. The international license allows you to “skip” the driving test should you apply for a Peruvian driver’s license.
• If you are married, both spouses must sign documents for property that is owned in Peru, including vehicles and real estate. A power of attorney from a Peruvian consulate and legalized by the Ministry of the Exterior can be used to substitute the Spouse’s signature (if you are in Peru then a Notary can do this for you).
• Expect to put a 10% down payment on property you plan to purchase (in some cases, if you are a foreigner, banks may ask you for 50% down).
• Some Peruvian banks may require a U.S. credit report and may charge a 30% interest rate on mortgage loans (Crédito Hipotecario) for foreigners. The typical interest rate in Peru ranges from 9-13% and mortgages are available from 10-25 years.
• Property taxes will need to be paid in person at the municipality. It is very difficult to pay this from abroad.
• You do not need a real estate agent to buy or sell property in Peru.
• You do need a notary.
• An attorney is recommend if you are uncertain about the documents you are signing. There are English speaking attorneys in Peru that can help you with both your real estate transactions and immigration documents.

 How do you find real estate in Northern Peru? You can check the local papers, you can walk around town and call the numbers at the bottom of the Se Vende signs (Se Alquila is to “Rent”), you can check the websites of the national banks, or you can check Peruvian real estate websites.

Before you get started, here is some important terminology to help you:

• Inmuebles = Real Estate
• Crédito Hipotecario = Mortgage
• Permiso Especial para Firmar Contratos = Special permission to sign contracts
• Venta de Departamentos/Condominios = Condos (or flats) for sale.
• Venta de Casas = Houses for Sale (normally single family residential).
• Casa de Playa / Casa Playera = Beach House
• Casa de Campo / Casa Campestre = Country House
• En Venta / Se Vende = For Sale
• En Alquila / Se Alquila = For Rent 

 Feature Photo Credit: “Pariwana Hostels“.