Peru's cost of living is very affordable, with a CPI of 31.1 compared to NYC. Groceries (35.4) and restaurant prices (25.7) are particularly low.

The housing market in Peru is considered expensive, with a property price to income ratio of 14.7 years. However, the rent index is very low at 9.5.

Purchasing power in Peru is low, with an index of 54.3 compared to NYC, indicating limited buying power for residents.

Peru has a progressive income tax system for residents (8% to 30% on annual income above 7 UIT). Non-residents face a flat 30% on Peruvian-source income. The standard VAT (IGV) is 18%, with reduced rates for tourism businesses. Annual property tax ranges from 0.2% to 1% of the cadastral value.

Peru's startup ecosystem is growing, with Lima ranking #182 globally in 2025. Government initiatives support new ventures, especially in fintech and healthtech. Historically, the business environment has faced regulatory complexity and bureaucracy, but recent government efforts aim to simplify regulations and reduce burdens.

Peru has a mixed public and private healthcare system, with broad coverage through MINSA and EsSalud, though expats often prefer private options. The pension system is mandatory, comprising public (SNP) and private (SPP) pillars, with reforms underway. Unemployment benefits are primarily employer-provided severance pay (CTS), with ongoing efforts to develop a more comprehensive system.

Deposits in Peru are protected by the Fondo de Seguro de Depósitos (FSD) up to S/ 117,200 (approximately USD 30,899) per depositor per entity for March-May 2026. The banking system is resilient, well-capitalized, and subject to robust regulatory oversight, aligning with Basel III principles.