Peru's

BusinessandInvestmentGuide2023Peru'sBusiness

andInvestmentGuide//

2023LimaMainOf?ceAv.VíctorAndrésBelaúnde171,SanIsidro-

Lima27SecondaryOf?ceAv.JorgeBasadre330,SanIsidro-

Lima27Tel:+511

4114444ArequipaAv.Bolognesi407,Yanahuara-

ArequipaTel:+5154484470Chiclayo

(satellite)Av.FedericoVillarreal115,Chiclayo-

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LaLibertadTel:+5144608830PauloPantigosoCountryManagingPartnerpaulo.pantigoso@AssuranceCharlesBunceAssuranceRegionalLeadercharles.bunce@VíctorTanakaAuditLeadervictor.tanaka@RafaelHuamánForensicsandIntegrityRegionalLeaderrafael.huaman@ConsultingJorgeAcostaConsultingLeaderjorge.acosta@Ta

xDaviddelaTorreTaxLeaderdavid.de.la.torre@Strategy

andTransactionsEnriqueOliverosStrategyandTransactionsLeaderenrique.oliveros@FinancialServices

Of?ce-

FSOJoséCarlosBellinaFinancialServicesOf?ceLeaderjose.bellina@Peruisoneofthemost

important

countriesinLatinAmerica.

Its

diverse

characteristicsincludea

variety

of

climates,a

vast

territorialexpanse,

signi?cant

natural

resources,peoplewithgreatskillsandhighacademicstandards,anda

solid

economicandindustrialbackground.

Today,

Peruisconsideredoneoftheworld's

leading

emerging

markets,witha

solid

recent

history

of

economic

stabilitybasedonanaverageannualGDPgrowth

rateof4.4%,measured

from2000to2022.Inresponse

totheimpact

oftheCOVID-19pandemic,

Peru

wasoneofthecountriesintheLatinAmerican

region,andindeed,intheworld,

to

implementsucha

forceful

responsethrough

economic

stimulus

packagesequivalent

to20%oftheGDP.

Thus,

Peruhada

rapid

recovery

of

economic

growth

of13.6%in2021,anda

continued

average

growth

of3.3%isexpected

from2023to2025.This

BusinessandInvestmentGuideisatool

for

foreignandnationalinvestors,providing

key

informationonthecountry'scurrent

economic

situationandthemaintax,legal,andlaborissues,aswellasonhow

to

incorporate

businessesinPeru,andgeneral

informationonhow

to

investanddobusinessinthecountry.Italso

containsa

complete

directory

of

Peruvian

embassiesandconsulates

abroad,aswellascontacts

ofinterest

to

investors.//

A

Wordfrom

thePresident

ofthe

Republicof

PeruWelcome

to

Peru,a

country

ofopportunitiesfor

investorsaroundtheworld!Peruisa

countrywitha

signi?cant

portfolio

of

investmentopportunitiesthatcontinues,withdeterminationandconviction,alongthepath

of

growthanddevelopmentthatithastraveled

overthepast

thirty

years,

basedongovernmentpoliciesandstructured

economic

managementthatoffercontinuity,

macroeconomic

discipline,

stability,anda

long-termvision.Dina

Boluarte

ZegarraPresident

oftheRepublicof

PeruEconomic

stability,whichhascontinued

sincethebeginningofthe1990s,andPeru’s

rapid

expansion

havehelpedreducethenationalpoverty

rate

from58.7%in2004to25.9%in2021,whileextreme

poverty

fell

from17.1%to4.1%inthesameperiod.Peru’s

in?ationhaslikewisebeenamongthelowestandleastvolatileinLatinAmerica

since2001,withanaverageannualin?ation

rate

of3%between2001and2022,halftheaverageforLatinAmericaduringthesameperiod.Withthegoal

of

fostering

economic

reactivation,the“ConPunchePerú”

program,a

colloquial

phrase

meaning“withvigor”,

hasallocated

approximatelyUSD2.5billioninspendingto

create

morethan130,000jobs

by

theendofthisyear.//A

Word

fromthePresidentof

theRepublicof

PeruPeru’s

?scal

solvency,

signi?cant

internationalreserves,

ef?cient

economicandregulatorymanagement,

favorable

macroeconomicclimate,legalstability

for

foreign

capital,andthecountry’sdynamicperformanceintheinternational

market

are

key

factorsthatarehighlyappreciated

by

investors

activeinthecountry.Itisthanks

to

its

network

of

tradeandinvestment

agreements,aswellasimportantregionalandglobal

integration

processesinwhichitactively

participates—

suchastheAndean

Community

(CAN),thePaci?cAlliance

(PA),theAsiaPaci?c

EconomicForum

(APEC)andtheTrans-Paci?c

StrategicEconomic

Partnership

Agreement

(TPSEP),aswellasthecurrent

process

tojointheOECD—

thatPeruhasa

privilegedaccess

totheworld’s

most

markets.Majorcredit

rating

agenciessuchasMoody’s,S&P

Global

Ratings,andtheInter-AmericanDevelopment

Bank

(IADB)

have

highlightedthesuitability

ofthe?scal

measures

takenbythePeruviannationalgovernmentinanadversepublichealthandeconomic

climate.Inshort,Peru’s

robustlegislationandef?cient

economicandregulatorymanagement,aswellasits

?scal

solvencyandimportant

international

reserves,

havehelpeditmaintaina

stable

economythatisseen

todayinmacroeconomic

?guresthatare

conducive

to

growthandfavorable

tosustainable

investments.Itisalso

important

to

notethatthebaseinterest

rate

established

by

Peru’s

CentralReserve

Bank

(BCRP)isoneofthelowestintheregion,witharealGDPclose

tothepotentialGDPanddownward-trendingin?ation

expectations.InJuly2023,theCentral

Reserve

Bankdecidedto

maintainthereference

rateat7.75%.Peruisback!

We

lookforward

to

welcomingyou!The

low

?scal

de?cithasresultedintheregion’s

lowestpublicdebt

ratio,withgrossdebt

accounting

for34%ofGDPin2022,witha

predicted

rate

of32.1%in2024.The

?scaldebtisexpected

to

remain

below2%oftheGDPduringthesametimeperiod.Atthesame

time,thePeruvian

government’sstrategy

tobea

part

oftheglobal

valuechainsshouldbehighlighted,

achieved

through

freetradeandbilateral

investment

agreementswithmorethan20countries

to

date.These

agreements

notonlyestablisha

legalreference

framework

for

investmentandtrade,butthey

also

offera

series

of

bene?tsandguarantees

to

foreign

investors,suchasthestability

oftherules

ofthegame,intellectual

property

protection,nationaltreatment,andpreferential

market

access.//

A

Word

fromthe

PeruvianMinister

ofForeign

AffairsMinistry

of

Foreign

AffairsAspart

oftheInterinstitutional

Cooperation

Agreementinplace

betweentheMinistry

of

Foreign

AffairsandEY

Peru,I

ampleased

to

presentthePeru's

BusinessandInvestmentGuide2023.This

collaborative

workthatwebeganin2013hasbecomea

valuable

toolinthelaborof

economic

promotion

carriedoutbyournetwork

ofdiplomaticmissions

abroad,whichbecomes

more

importantina

contextinwhichourcountryrequiresthegreatest

of

commitments

to

restore

its

path

ofgrowthandeconomic

developmentinfavor

ofourcitizens.Withthisobjectiveinmind,any

initiativeandpublic-privatecollaborationwillalwaysbewelcome.AnaCecilia

GervasiDíazMinister

ofForeign

AffairsCurrently,

we?ndourselvesina

complex

scenarioatthenationalandinternational

level,

characterized

by

increasingpolarization,andfacing

various

factorsorphenomena,somerecurring,thathaveanimpactonglobal

growth,suchasthelagsofthepandemic;thelogistical

dif?culties

generatedininternational

trade,insupplychainsandinfuel,energyandfood

prices;

global

warminganditsclimaticconsequences,organized

crime,

corruption,amongothers.

Faced

withthissituation,

Peruhasproven

tobea

solidandresilient

countrythanks

to

its

consistent

economic

policy,

basedonfree

marketprinciples,

economicandcommercial

openness,anda

visionof

social

responsibility.//A

Word

fromthePeruvianMinister

ofForeign

AffairsBeing

consistentwithourprinciples,thetrade

policy

promoted

by

Peru

for

morethantwo

decadeshasallowedourcountryto

have

twenty-two

trade

agreements,whichtogether

ensure

preferential

access

forPeruvian

products

to

morethan?fty-eightmarkets

(currently,92%of

Peruvian

exportsare

covered

by

trade

agreements).

Theseagreements

also

contribute

totheproductivedevelopmentandimprovement

ofthecompetitiveness

of

companies,

to

promoteemployment,andencouragetheparticipationof

womenandmicroandsmallenterprises(MSEs)intheeconomy.This

unprecedented

multisectoral

effort

toadopt

OECD

standardsandgoodpracticesisbasedonvalues

sharedwiththatorganization,suchasdemocracy,theopeneconomy,theprotection

ofhumanrightsandtheenvironment,the?ght

againstcorruption,amongother

key

aspectsthatconstitutea

"quality

seal"

fortheattractionof

foreign

direct

investment

?owsandthecreation

of

quality

jobs.Withinthisframework,

Peruiscommitted

toimprovingthecountry's

business

climate,promotingtheeliminationof

bureaucraticbarriers,andmodernizingandsimplifyingadministrative

processes

forthecreationanddevelopment

of

companies.

Theobjectiveisto

continue

developinganeven

more

favorable

business

environmentfor

investorsandimprove

Peru'sFrom

a

regional

perspective,

Peru,withitshistorical

vocationinfavor

of

integration,actively

participatesasa

foundingmemberoftheAndean

Community,thePaci?c

Alliance,theLatinAmerican

Integration

Association(ALADI)andtheLatinAmericanandcompetitiveness

internationally.Caribbean

Economic

System

(SELA).

Likewise,ourparticipationandrelationship

also

extendto

other

regional

processes,suchastheCommon

Market

oftheSouth

(MERCOSUR).From

a

global

perspective,

we

arepart

oftheAsiaPaci?c

Economic

Forum

(APEC),whichwewillleadin2024,andwe

areanactiveandcommittedmemberoftheWorld

TradeOrganization

(WTO).Internally,

Peruhasa

series

ofcharacteristicsthatoffer

valuableopportunitiesfor

tradeandforeigninvestment,suchas:?

Legal

stabilityandsolid

macroeconomicfoundations.?

Constitutional

guarantees

to

foreigninvestmentandprivate

property.Additionally,

PeruhasbeguntheprocessofjoiningtheOrganization

for

EconomicCooperationandDevelopment

(OECD),whichmeans

embarkingona

path

of

reforms

toclose

gaps,andtheinstitutional

strengtheningofthestateandpublicgovernance,withtheobjective

of

providing

better

qualitypublicservices

forthebene?t

ofthepopulationand,inthisway,

leadingthecountrytowards

inclusive,

sustainableandresilientdevelopment.?

Prudent

economicandregulatorymanagementthathasbeenmaintainedthrough

successive

democraticgovernments.?

Leading

economic

growthintheregion,returning

to

pre-pandemic

levelsinjustoneyear.?

National?scal

solvencyandimportantinternational

reserves.?

Integration

ofthecountryinregionalandglobal

markets.//A

Word

fromthePeruvianMinister

ofForeign

AffairsDear

readers,allthese

variablesthatI

haveallowed

myself

to

brie?y

review

makeupthepowerful

economic

ecosystemthatmycountry

offers

for

businessandinvestment,andthat,withouta

doubt,

makes

Peruastrategicandreliable

partner.The

Ministry

of

Foreign

Affairs

invites

you

tocontinue

trustinginPeruandbepart

of

itsgrowthanddevelopmentthatwillundoubtedlygenerateopportunitiesandwell-being

forallthosewhobetonit.Peruisback!

We

lookforward

to

welcomingyou!The

government

of

PresidentDina

Boluartehasthe?rmintention

of

calling

for

greaterinvestmentsthatgenerate

employment,improve

infrastructureandpromote

greatersocialandsustainable

development.

Thevarious

Peruvian

institutionsandagenciesincharge

of

promoting

investmentandfacilitating

trade–

suchastheExecutiveOf?ce

for

Economic

Promotion

oftheMinistry

of

Foreign

Affairs,thePeruvianCommission

forthePromotion

ofExportsandTourism

(PROMPERU)andthePrivate

Investment

Promotion

Agency(PROINVERSION),are

available

to

adviseyouontheprocesses

related

to

foreigninvestmentinPeru,andto

providetheinformationandcontactsthatare

required.//

EY

Peru:Challengesto

achievesustainedgrowthPeruisoneofthecountriesinLatinAmericathatstandsoutfor

its

macroeconomic

stability,whichisoneofthenation's

most

important

pillars

of

competitiveness.

Almostuninterrupted

economic

growth,

except

for

COVID-19,

overthepast23years

until2022hasconsistently

contributed

totheimprovement

of

infrastructure,

development

ofhumancapital,theadoption

of

new

technologiesandthestandardoflivingofallPeruvian

citizens.

Additionally,a

policy

ofbeingopentotheinternational

market

throughmultiplecommercial

agreements

complementslegislationthatisfavorable

to

private

domesticandforeign

investment.Paulo

PantigosoVellosodaSilveiraCountryManagingPartnerof

EY

PeruThe

recognition

of

Peru's

solid

economyisbasedonlowin?ation

(at

theclose

of2023,therewillbe26consecutiveyears

ofsingle-digitin?ation),

international

reservesequivalent

to29.4%of

GDP,

a

controlled

?scal

de?cit

(anaverage

of3.4%ofGDPoverthepast

?ve

years,andanestimated1.6%attheclose

of2023),andpublicdebtthatisestimated

not

to

exceed33%ofGDPattheclose

of2023,well

belowtheaverage

oftherest

of

emerging

countriesintheworld(65.0%)andintheregion(69.4%).Additionally,2023closeswithanestimated

tradesurplusof

morethanUSD14.3billion.Editor//EY

Peru:Challenges

toachieve

sustainedgrowthThanks

to

Peru's

macroeconomic

solidity,itwasableto

mountthemost

robustresponse

to

COVID-19intheregion,with?scal

measures

equivalent

to20%of

its

GDP.These

steps

alloweditto

achievea

rapidGDPrecovery

of13.6%in2021,2.7%in2022,andanestimated

growth

of2.2%in2023,according

to

forecasts

bytheCentral

ReserveBank

of

Peru

(BCRP)andtheMinistry

ofEconomyandFinance.Throughthisguide,

we

commit

tosupporting

Peruinits

growth

by

helpingbusinesses

get

started,

grow,

andthrive.Ifyou

area

foreign

investor

interestedininvestinginPeru,

you

are

also

welcometo

approachthePeruviandiplomaticorconsular

mission

nearest

you,

listedattheendofthisGuide.AtEY

we

reaf?rmourcommitment

toPeru's

development,aswellastothebuildingofa

better

world

for

business.We

invite

you

to

readthisGuideinthehopethatitwillbeof

use

to

discover

newinitiatives,andwe

areatyour

disposal

forany

assistance

you

may

require.We

?rmlybelievethatPeru

offers

greatopportunitiesfor

favorable

investment,aswellasanideal

business

climate

for

investment.Peru's

economyisshowing

indicators

ofevident

recoverywithina

challengingandconstantlychangingenvironment.This

neweditionofthePeru's

BusinessandInvestmentGuideprovidestheinvestorwithcurrent

key

informationonPeru's

economic,legal,tax,laborand?nancialissues,aswellasother

informationthatcanbeusedasaconsultation

tool

for

developing

activitiesandmakingbusiness

decisions.//

A

Word

from

theDirector

Generalof

EconomicPromotionMinistry

of

Foreign

AffairsPeruisa

countrywithanopenandstable

economy,andwitha

strong

integrationist

vocation,whichhasdeveloped

policiesthatare

very

favorable

to

attracting

foreign

investment,developing

priority

productive

sectorsandgeneratingsustained

economic

growth.The

geographical

positionthatourcountryhasplacesitasa

naturalhubthatconnectstheAsiaPaci?c

basinwiththeSouth

American

region,which,togetherwitha

network

oftradeandinvestment

facilitation

agreements,hasinsertedusintotheinternational

marketsasanemerging

strategiceconomy.NoelaPantoja

CrespoDirector

General

ofEconomic

PromotionAddedtothisistheupcoming

completion

ofthelargestairport

andport

logisticshubintheregionwhich,addedtotheindustrial

zoneplannedinits

surroundings,

con?gurethenecessary

elements

forthegeneration

ofa

largeSpecialEconomic

Zone,

soon,inthecenter

ofthePeruvian

coast.Likewise,itshouldbenotedthatPeruisa

miningcountry,a

sectorthatconcentratestheattention

of

internationalinvestors,and

at

the

sametime

offers

important

opportunitiesinother

sectorssuchasagro-industrial,

logisticsandtourism.InPeru,

constant

workisbeingdoneto

improvethecountry'sinfrastructure,prioritizingthemodernization

of

airports,portsandroads

to

promote

connectivityandaccessibility

todifferent

regions

ofthecountry,whichisanattraction

forinterested

investors.//A

Word

from

theDirector

Generalof

EconomicPromotionInterms

of

trade

facilitation,

Peruisamongthebest

performersinLatinAmerica,according

tothetrade

facilitation

index

oftheOrganization

for

Economic

CooperationandDevelopment(OCDE),witha

value

of1.568outofatotal

favorable

index

of2,whilethevalue

forLatinAmericais1.3.The

Peru’s

BusinessandInvestmentGuideisaninitiativethatunitesthepublicandprivatesectorswiththepurpose

of

facilitatinganimportant

toolthatallows

greater

knowledgeofourbusinessandinvestment

ecosystemandisa

product

oftheInterinstitutionalAgreement

betweentheMinistry

of

ForeignAffairsandEY

Peru.The

implementation

of

new

contractingmodalities

complementary

to

traditionalones,suchastheGovernment-to-Government

Agreements,

areanexampleofthegovernment

policyinfavor

ofthedevelopment

ofthecountry's

infrastructure,complemented

bytheexchange

of

knowledgeandtechnology.Inthissense,therole

played

bytheMinistryof

Foreign

AffairsinthePeruvian

businessandinvestment

ecosystemistransversalandisdevelopedundera

strategicandforeignpolicy

approach,insynergyandconstantcoordinationwiththevarious

Peruvianpublicandprivate

entities,

consideringthatourinstitutionhasthemost

important

networkof

missions

aroundtheworld,whichallowsinvestors

to

access

directlythebusinessandinvestmentopportunitiesinPeru.Also,theattraction

of

inclusiveandsustainable

investmentsisbeingpromoted,whichencouragestheincreaseinformalemployment,theadoption

of

environmentalprotection

measuresandrespect

forlaborrights.Alongthese

lines,theinnovativeinitiative

to

promote

green?nancingdeserves

tobehighlighted.Underthiscontext,theMinistry

of

ForeignAffairs

works

tirelessly

to

contribute

totheeconomic

reactivation

ofthecountryandoffers

any

interested

party

advice

to

carryoutbusinessorinvestmentsinPeru.Ontheotherhand,inthequest

to

continuetheinclusive

development

ofthecountryandgenerate

economicdynamism,Perusigni?cantly

reducedthetariffsappliedtoforeign

trade,goingfromanaverage

tariffof13.2%in1990to1.8%currently,whichisexplained

bya

series

ofpublicpoliciesinfavor

ofthefree

marketthataredeeperthanneighboringcountries,whichreducedtheirtariffsonaverage

from12%to7%,inthesameperiod.I

extend

my

warmest

invitation

tobusinessmenandinvestors

to

considertheopportunitiesthatPeru

offersand,aboveall,to

trustinthecommitment

ofthePeruviangovernment

to

contribute

tothesustainableandequitable

development

ofthecountry.//

A

Word

fromthe

ExecutiveDirector

ofProInversiónPrivate

Investment

Promotion

AgencyPeruhascontinued

to

displaya

noteworthyandrobusteconomic

performance

overthelast

two

decades,managingto

notonlycontinue

downthepath

of

growth,butto

improvekey

indicatorssuchastrade

openness,

?scal

sustainability,controlled

in?ation,theclosure

of

gapsinaccess

to

utilities,andpoverty

reduction.

Thishasallowedthecountry

topromote

investmentandfosterthegrowth

ofthedomesticmarket,whileatthesametimedevelopinga

clear

policy

ofintegrationwithinternational

markets.José

Salardi

RodríguezExecutive

Director

ofthePrivate

InvestmentPromotion

Agency

-

PeruIn2022,Peru

reportedthethird

highest

growth

rateinSouth

America.

For

2023and2024,growthispredicted

toreach2.2%and3%,respectively,

according

to

forecasts

bytheCentral

Reserve

Bank

of

Peru.

WithintheLatinAmericancontext,

Peruisamongthecountrieswiththelowest

slowdownfor2023andhighest

expectations

for

cyclical

recoveryin2024.

Peru'sprimary

macroeconomic

strengths

at

the

regionallevel,

linked

to

low

debt

levels,a

strong

currency,andhighinternational

reserves,

are

fundamentalinaddressing

riskssuchasa

slowdowninglobal

growth,

technology

wars,

tradetensionsandinternational

con?icts.

These

strengths

createspace

to

implement

economic

reactivationplansandpoliciesthatwillhelphandlepossible

food,

energy,andeconomicand/or?nancialcrises.//A

Word

fromtheExecutiveDirector

ofProInversiónThe

Peruvian

economy's

growthoutlookfor2023isrooted

aboveallintheactivitiesofthemetalmining,hydrocarbons,Inthetransportationandcommunicationssector,

there

aresixprojects

valuedatoverUSD4.7billion,includingthePeripheralRingRoad

project,anurban

roadway

projectaimedatfacilitatingthetransport

of

heavyfreight

totheport

of

Callao;theLongitudinaldelaSierra

Highway–

Tranche4

project,a

road

projectinthecentralpart

ofthecountry;

two

ports,theSanJuandeMarconaPort

TerminalandtheChimbote

InternationalTerminal;anda

telecommunications

projectthatwas

recently

awardedinconcession,aimedatexpandingthedevelopment

ofmobile4Gbroadband

systems

nationwide.Thereisalsoa

projectintheproductionsector

consisting

ofanindustrial

parkandmanufacturing

sectors,whichhavemaintaineda

positive

investmentdynamicthanks

tothedevelopmentandstart-up

ofmajorinfrastructure

project

concessionsinrecent

years.

Additionally,

ProInversiónhasbeenpromotinga

numberof

projects,

manyofwhichwere

prioritizedunderthe2019NationalInfrastructure

for

CompetitivenessPlan,andboostedfurther

inthenew2022NationalSustainable

Infrastructure

forCompetitivenessPlan(PNISC).ProInversióniscurrently

promotingaportfolio

of63projects,

representingatotalinvestment

ofUSD11billion.Notableamongthese

arethepackages

of

thirteen

projectsinthewaterandsanitation

sector

(withanestimated

investment

of

overUSD1.5billion),thatwillhelpimprove

wastewater

treatmentanddrinkingwater

provision

percentages;andtwenty-six

electricity

projects

(overUSD2.1billion),whichwillexpand500and220kVelectricity

transmission,

solvereliability

issues,andavoid

overloadingtheelectricsystem.(USD760million);whileinthehydrocarbonssector,

thereistheIntegrated

NaturalGasTransportation

System

project,

forwhichstudies

are

currentlybeingdone.Internationalpublicbiddingprocesseswillbecalled

forallof

these

projects,

seeking

tocreate

competitionandattractthebest

globaloperators

to

guarantee

high-quality

servicesthroughouttheconcessionperiod.Peruvian

law

also

containsspecialregimesto

guaranteethestability

of

factorsthatare

important

for

investment

development,suchastheease

of

moving

capital,

faircompetition,doubletax

avoidance

treaties,andtheprotection

of

private

property.Inthehealth

sector,

eight

projectsarebeingdevelopedthatwillrequireinvestment

commitments

of

overUSD1billion.Additionally,

?ve

projects

arebeingdevelopedintheeducation

sector,

foraninvestment

amount