Foreign Investments

The Peruvian Government actively seeks to attract both foreign and domestic investment in all sectors of the economy. In recent years overall economic advances have contributed to a better perception of Peru and to create an appropriate climate to lure both foreign and domestic investment:

• Foreign Direct Investments increased 3 times in the last 10 years reaching US$ 14.3 billion in 2005. Main investors in Peru are Spain with 33.1%, followed by the USA and UK with 15.8% and 15.6%, respectively.
• Dozens of the most important enterprises are doing business with Peru.
• Foreign Direct Investments is concentrated in telecommunications, mining, manufacturing, finance, and electricity.

Peru’s policy for investments promotion has been very active, and includes a concessions and privatizations program conducted by PROINVERSION, the Peruvian Government Agency responsible for the Promotion of Private Investment. Peru has a modern legislation which rules foreign investments, based on a non-discriminatory treatment with regard to national investors. The legal framework also establishes:

• Freedom to conduct commercial and industrial activities and to perform import and export operations.
• Right to remit abroad profits or dividends, after payment of the corresponding taxes.
• Right to use the most favorable exchange rate existing in the market for any exchange operation.
• Right to free re-exportation of invested capital
• Unrestricted access to domestic loans, under the same conditions than national investors.
• Free acquisition of technology and free remittance of royalties.
• Freedom to acquire shares of national investors.
• Possibility to subscribe Legal Stability Agreements with the State over investment in the country.

WTO commitments are fully abided by. No selection mechanisms or performance requirements are applied or demanded to foreign investors. Foreign investment may be made in any income-generating activity, under any of the following forms established by Law:

• Foreign Direct Investment, as contribution to stock equity.
• Contributions to the development of contractual joint ventures.
• Investment in goods and properties located within national land.
• Portfolio investments.
• In intangible technological contributions.
• Any other investment modality

Peru has also been active in negotiating bilateral treaties for reciprocal promotion and protection of investments. At present, 29 agreements have been already concluded with countries of the Pacific Basin, Europe and Latin America, including one with Australia in 1995. In the Regional and multilateral areas, Peru has subscribed several treaties including the OPIC agreement, MIGA and others.

• Peru - Private Investment Promotion Agency