Peru's two-year naturalisation is coming to an end: Ley 32421 extends it to five years, adds an income test and drops the Rentista route. It is not in force yet. Why you should act under the old law now, and why this is a passport window, not a tax window. The 2026 guide.
For decades Peru was one of the fastest routes to a second passport: naturalisation after just two years. Hardly any other country offered such a short path to full citizenship without a minimum investment. That window is now closing. What was a reliable fast route for decades will soon be history. The new citizenship law, Ley 32421, extends the period to five years, introduces an income test and removes the route for retirees. But there is a transition phase in which the old, favourable law still applies, and you should know about it. That transition phase is the real opportunity. And I will say it honestly from the start: this is a passport window, not a tax window. This guide explains both. One note up front: acting under the old law, yes, but citizenship is not tax residence.
What changes: from two years to five
Let us start with the change. On 15 August 2025 the official gazette El Peruano published the new citizenship law, Ley 32421, which is to replace the thirty-year-old Ley 26574 as soon as it enters into force. According to lawmakers, the reform is meant to ensure that applicants prove genuine, lasting ties to Peru. The central tightening: the general naturalisation period rises from two to five years. For most applicants, the wait more than doubles. On top of that comes an income test of ten tax units (UIT) a year, which for 2026 is around 55,000 soles or roughly USD 15,000, proven to the tax authority SUNAT, plus language and integration tests on history, geography and civics and a clean Interpol certificate. The income must come from lawful activity declared in Peru; informal or untaxed income does not count. Migration data is covered by IMI Daily. Once the law is in force, Peru leaves the small circle of countries with two-year naturalisation. After that, only Argentina keeps this short period counted from the first residence; the Dominican Republic counts its two years only from permanent residence.
The end of the Rentista route
A second change is particularly painful for many retirees from abroad: the new law removes the Rentista route. Under the law that still applies today, people living on a stable foreign income such as a pension or investments can naturalise after two years; once Ley 32421 is in force, that changes. This category disappears in the new law unless the implementing regulation restores it. Relying on a possible restoration means taking a risk you do not need to take. For retirees without income earned in the country, this means that the previously simple route to Peruvian citizenship is under threat. The new income test requires income declared in Peru and earned in the country, which many pensioners do not have. If you were planning to take this route as a retiree, you now need to pay close attention and use the old law while it is still open, before it is too late. Whether the implementing regulation brings the Rentista route back in any form is currently open. This removal hits exactly the group for whom Peru was particularly attractive until now. Retirees living on a pension or capital were for years the typical beneficiaries of the fast Peruvian route. For them, the end of the Rentista route is the most drastic change in the whole law.
The transition phase: the old law still applies
And now the good news. The new law is not yet in force. It enters into force only on the day after its implementing regulation (Reglamento) is published. The law gave the government 180 working days for this; that deadline has passed, and as of 24 October 2026 the regulation had still not appeared in El Peruano. As long as it is not published, the old law remains fully effective. Until then, the old Ley 26574 with its favourable two years continues to apply. That law stood for three decades and favours applicants with economic or cultural ties to Peru. The transition rule is decisive: all applications filed before the new law enters into force are still decided under the old law. Residence and passport routes are documented by Henley & Partners. In other words: if you already meet the two years, or will soon, you can still naturalise under the old, favourable law. This grandfathering rule is written expressly into the new law. The window is real, but it closes with the regulation. Nobody knows exactly on which day the regulation will appear, which is what makes acting urgent.
What to do now
The recommendation follows from the transition phase. If you meet the two years of continuous lawful residence under the old law, whether through a work visa, as a Rentista or as a citizen of an Ibero-American country, you should file your application as early as possible. Citizens of Spain, Italy and the Philippines also enjoyed the short two-year period under the old law. Once the new law enters into force, the longer periods and higher hurdles apply. An application filed one day before entry into force is still handled under the old law; one filed a day after, under the new. That cut-off date is why filing early matters so much. Genuine presence matters here: continuous residence in Peru means you have actually lived in the country, not merely entered it now and then, and an absence of more than 183 consecutive days costs you the residence itself. Migraciones checks the entry and exit stamps closely, and gaps in your residence can sink the application. If you act now and meet the requirements, you can still secure the short period. The right moment is now, not some time later, because the regulation can appear at any time. If you have all your documents ready, you can file the moment it counts. Hesitating here can cost you three extra years, and those three years are also three more years of genuinely living in the country.
The honest truth: a passport is not tax
And now the point I stress emphatically. The Peru window is a citizenship window, not a tax window. Ley 32421 does not change the tax rules. It concerns nationality only, not tax law. Peruvian tax residence continues to follow the 183-day rule: anyone in the country for more than 183 days within a twelve-month period is treated as domiciled and taxed on worldwide income. Anyone who stays below 183 days pays only on Peruvian-source income. The tax rules are documented by PwC. Peruvian citizenship therefore brings no tax advantages; it is a travel document and a legal status, not a tax cut. A new Peruvian citizen has exactly the same tax obligations as before as a resident foreigner. If you look at Peru for tax reasons, you are looking at the wrong thing, because Peru taxes worldwide income. Peru is a wonderful country to live in and a good route to a passport, but it is not a tax haven. As a country with worldwide taxation, it is not a place to put foreign income beyond tax. This distinction between passport and tax is the most important one in the whole topic. Once you have internalised it, Peru will not leave you with false expectations. The passport opens up travel freedom and rights; tax depends solely on residence and days spent.
What this means for you: use the window, solve tax separately
Now to you. If you want to use Peru as a route to a second passport, act under the old law while it applies, because two years against the coming five is a real advantage. A second passport means travel freedom, a fallback option and a measure of security for your whole family. But keep passport and tax strictly apart. One is a legal status, the other a question of days and residence. Peruvian citizenship does not lower your tax, and it does not end your tax obligations at home. Holding two passports is not a tax model; it is pure mobility. For the tax side you need a clean exit from your current country of tax residence and, if you want to benefit on tax, a territorial destination for your actual residence. Your actual tax residence and your citizenship can be in completely different countries. Peru gives you the passport; the tax saving comes from the right structure elsewhere. A Peruvian passport and Paraguayan tax residence, for example, can complement each other very well. Together they make the complete plan. If you see only the passport and forget about tax, you have only thought it half through. Structure decides, not the destination.
Becoming Peruvian does not end your tax residence at home. What your home country keeps taxing and what leaving involves depends on where you come from:
What it comes down to
Peru's two-year naturalisation ends when Ley 32421 enters into force: it extends the period from two to five years, introduces an income test of around USD 15,000 plus language and integration tests, and removes the Rentista route for retirees. Peru will then drop out of the small circle of countries with two-year naturalisation. But the new law is not yet in force: until the implementing regulation is published, the old, favourable law applies, and applications filed before then are still decided under it. So if you meet the two years, act now. Every month of hesitation narrows the open window. Above all, the honest truth remains: this is a passport window, not a tax window, because Peru continues to tax worldwide income under the 183-day rule, and citizenship is not tax residence. If you take that separation seriously, you use the passport window wisely and solve tax in the right place. This clean separation of passport and tax is exactly what I build with my clients. That way you get the benefit of the fast passport without fooling yourself about tax. Clarity on both levels is the best protection against expensive disappointments.
If you want to use the Peru window for a second passport and sort out your tax properly and separately, let us plan it together. Book a call with me using the link below.
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Carpe Diem. Life is short and fleeting. One shot. Make it count.