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Gavin44 wrote:

I have been on and off here for the whole year. It looks like it will be 7 days over the 180 days which was a surprise to me. I was quite willing to pay the fine but now I am worried. Are there really tax implications ? This is my first year of pension and has afforded me time here.  I will have to leave very soon if this is the case so any help would be wonderful. I am from Canada.

Dear Gavin, welcome to the Peru forums of expat.com ....

The extra week you spent in Peru technically or theoretically converts your status into resident taxpayer.

You have two obvious choices as I see it if your pension income is at stake...

1.  Decide to pay Peru every cent of the worldwide income taxes it has declared it is owed by any Expat spending half of any 12-month period in La República.  You can consult an accountant or tax attorney to make sure you sign every T on the proper tax forms .. pay the freight .. and then spend much time in Peru going forward, paying up to 30 percent taxes on your income  every year.

2.  Put Peru in your rear-view mirror and do not establish a permanent residency in Peru.  Theoretically, Peru could try to cross international boundaries and seek up to 30 percent of your latest-year's income.  But they've got bigger fish to fry -- large corporations -- so their theoretical pursuit of your small-fry pension is not a certainty.

Before you make any fast moves, find out whether Peru taxes foreign pensions such as yours.  Don't trust laymen Expats on this site to give you reliable answers on this for your specific case and your specific background. 

Remember that the tax laws change here in South American countries, sometimes every year or two.  So if you research this online, take into account whether the information you are reading is current.

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According to an undated article currently posted at escapeartist.com, Peru offers a retirement visa called the Rentista Visa that exempts Expat retirees from paying Peruvian tax on foreign pension-income received.

Google:

escapeartist peru the benefits of the rentista visa

This, of course, does not retroactively benefit the OP for his unplanned overstay 'tax year' .. although it may be of value to him and other readers, going forward.

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I very much appreciate your thoughts. It looks like I will have to do some quick investigations. Thank you.

Another option is just wait and see what happens. This topic is flogged to death on most Colombian forums for the same reason your investigating. One alternative I have heard put forth is, dont go looking for trouble and try to fly under the radar. The government has bigger fish to fry and more than likely will not be out hunting down retired gringos.


Again, I am not endorsing this idea. Its just one of several endorsed on one Colombian forum i read. They could be right or it could leave you open to additional penalties by not paying in a timely manner.

I have opted to count my days carefully to avoid these issues and the local economies will loose a significant amount of COP when many gringos decide be be in other countries 6 months of the year.

Thanks for your thoughts. It does seem Colombians are not worried. I wonder if the fact I am on pension will make the difference as opposed to working. I did go to SUNAT and was told it only applied if I worked here too which I haven t been engaged in. I hope this is correct.

NHLFAN wrote:

I have opted to count my days carefully to avoid (worldwide income tax in Colombia) issues and the local economies will lose a significant amount of COP when many gringos decide to be in other countries 6 months of the year.

One option for six-month taxbirds:  schedule a three-hour Avianca flight between Lima and Medellín, Colombia, once a year, stay 182 days in Peru or Colombia, then take your return flight to Lima or Medellín with a layover of at least a few days in Quito, Ecuador.  This way you avoid passing the 183-days-plus threshold for becoming a tax resident of any country involved.  Travel days in which arrival and departure occur in the same calendar day are counted as full days in-country in both the departure and arrival cities.

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