The soft landing process is a fundamental strategy for foreign companies intending to expand their operations into new markets in a safe, agile, and sustainable manner. In Peru’s case, the government has implemented several fiscal, regulatory, and financial incentives that encourage foreign investment, making the country an attractive destination for establishing and consolidating international businesses.
Foreign direct investment (FDI) is crucial for the country’s economic growth, generating employment, technology transfer, and competitiveness. Therefore, government incentives not only aim to attract capital but also to ensure a favorable environment for its permanence and development. Within this framework, soft landing in Peru becomes a strategic ally that facilitates the legal, tax, and operational adaptation of foreign companies to the local environment.
Tax Benefits for Foreign Companies
One of the main attractions for foreign investors in Peru is its competitive tax framework, and the tax incentives established to promote strategic sectors. Some benefits vary according to economic activity, geographical location, and type of investment, among which the following stand out:
- Special Economic Zones (SEZs): Peru has Special Economic Zones, such as the ZOFRATACNA (Zona Franca de Tacna – Tacna Free Trade Zone) and the Zona Franca de Ilo (Ilo Free Trade Zone), where companies are exempt from the IGV (Impuesto General a las Ventas – General Sales Tax/VAT), income tax (IT), and customs duties on imports. These zones are an ideal entry point for manufacturing, logistics, or export operations.
- Double Taxation Agreements (DTAs): The Peruvian government has agreements with more than a dozen countries, including Spain, Chile, Mexico, and Canada, that prevent double taxation on the income of foreign companies. It promotes a more efficient tax structure and avoids double taxation, a key factor for multinational corporations.
- Incentives for innovation and technological development: The government promotes investment in innovation through tax deductions of up to 175% of expenses related to research, development, and technological innovation (R&D&I). This benefit is particularly relevant for companies intending to incorporate advanced technologies or innovative industrial processes during their soft-landing in Peru.
Legal Stability and International Agreements
Peru is further enhanced by its membership in international organizations and its signing of free trade agreements (FTAs) with major nations, including the United States, China, the European Union, and Japan, thus providing a strong and reliable legal framework for foreign investment. These treaties guarantee conditions of reciprocity and investment protection, as well as preferential access to international markets.
Likewise, the Foreign Investment Promotion Law (Legislative Decree No. 662) ensures national treatment for foreign investors, allowing them to operate on equal terms with local companies, which implies freedom to transfer profits abroad, stability in tax regulations, and free availability of foreign currency.
For a company intending to establish itself in Peru, this stability is vital: It reduces country risk, provides long-term predictability, and reinforces the confidence of international partners.
Sectoral Incentives: Industry, Energy, and Technology
Peru promotes the inflow of foreign capital into strategic sectors through specific programs. For example, the industrial sector has tariff-free import facilities for machinery when it is used for domestic production. In the energy sector, non-conventional renewable energy projects—such as solar and wind—enjoy tax benefits and land concession facilities.
The technology sector also receives support through programs such as StartUp Perú, which promotes the creation of technology companies with mixed capital (domestic and foreign). These types of initiatives enable companies to implement digital business models or service innovations.
Role of Soft-Landing Services in Peru
Despite incentives, entering a new market requires understanding its regulatory, fiscal, labor, and cultural environment. Soft-landing services in Peru are particularly relevant in this regard. These services offer comprehensive support during the setup process, ensuring the smooth legal incorporation of the company, tax registration, staff recruitment, and compliance with local regulations.
An expert soft-landing partner enables companies to reduce the time, costs, and risks associated with internationalization. It also facilitates better connections with local business networks, financing opportunities, and government support programs. In other words, a soft landing transforms government incentives into tangible and sustainable benefits.
Prospects for Foreign Investment in Peru
Peruvian economic policy remains favorable to the free market and open trade. In the coming years, the country is expected to strengthen further its network of international agreements, modernize its logistics infrastructure, and expand incentive programs to high-tech, sustainability, and circular economy sectors.
Companies planning their soft landing with a strategic vision will be able to leverage this context to position themselves competitively in the Andean and South American markets. Peru not only offers economic stability but also an ideal platform for regional operations, due to its privileged geographical location and growing network of trade agreements.
Conclusion
Government incentives for foreign investment in Peru are a valuable opportunity for companies intending to expand their borders. From tax benefits to innovation programs, the country has solid conditions to attract capital and foster business development. Conversely, taking advantage of these benefits requires specialized knowledge and a well-planned entry strategy.
A soft landing service in Peru facilitates this process, allowing foreign companies to adapt quickly, safely, and efficiently to the local environment.
For further information, contact us at: contacto@vag-global.com or call +511 436 4612.