Banking, Money and Taxes in Peru

Managing your money, banking, and taxes in Peru will be relatively easy thanks to the country's modern banking system which is regulated by the Central Reserve Bank of Peru. Peru’s banking system underwent privatisation during the 1990s, expanding the number of options available to both locals and expats living in the country.

Money in Peru

The official currency is the Sol (PEN), which is divided into 100 céntimos and represented by the symbol S/.

• Notes: PEN 10, PEN 20, PEN 50, PEN 100 and PEN 200
• Coins: PEN 1, PEN 2 and PEN 5 and 5 céntimos, 10 céntimos, 20 céntimos and 50 céntimos.

US dollars are widely accepted in Peru, but the exchange rate on these is usually poor. Day-to-day transactions may also be difficult to make in US dollars, as many small shops are only used to trading in soles.

Banking in Peru

Expats will find that banking in Peru is relatively easy. Both local and international banks operate in the country, and most Peruvian banks offer modern facilities and services.

You should be aware that there have been some issues with counterfeit foreign currency in the country, particularly US dollars, so it’s best to exchange your money at a legitimate establishment.

Banking hours vary, but most branches are open between 9am to 1pm and 3pm to 6pm Monday to Saturday. Some banks are also open on Sunday for a limited number of hours.

Opening a bank account

Foreigners can open a bank account in the local currency or in some foreign currencies, including dollars. To open a Peruvian bank account, you must provide your passport and have a foreign residence card. Proof of address and income may also be required.

Peru has modern banking facilities, including cellphone and internet banking services, allowing you to avoid wasting time in long bank queues. Peruvian bank charges can be quite high, as most banks charge for every transaction, so you should shop around and compare rates when deciding which bank to open an account with. 

ATMs and credit cards

ATMs are available across the country, with the largest concentration found in the larger tourist cities. They are typically found inside bank branches, shopping centres, and near the main square. 

ATMs are also available in some pharmacies. However, foreign bank cards are not always accepted in ATMs, so it's best to check before trying to draw cash.

Rural Peru remains a largely cash-based society, and credit cards aren't a typical means of payment. That said, credit cards are accepted in major shops, restaurants, and hotels in Peruvian cities. The most commonly accepted credit cards in Peru are Visa and Mastercard. American Express cards may also be accepted at luxury hotels and upscale restaurants. 

Taxes in Peru

Peruvian residents pay tax on a progressive scale on their worldwide income, while non-residents are only taxed at a 30-percent flat rate on income earned in Peru. You're considered a tax resident in Peru if you've been in the country for at least 183 days in a 12-month period. These days don't have to be consecutive.  

Peru's personal income tax rates range from a sliding scale of 8 to 30 percent. The country also has double taxation treaties with several countries that allow expats to pay tax only in one country. As expat tax matters can be complicated, it's best to seek professional advice from a tax expert.