Peru has taken a decisive step to boost competitiveness and attract domestic and foreign investment by creating new special economic zones. With the publication of Law No. 32449, the country officially launches a new framework for Private Special Economic Zones (ZEEP), offering a unique combination of tax and customs benefits that aim to stimulate industrial development, innovation, and export diversification. The initiative, approved by the insistence of the Congress of the Republic, represents one of the most ambitious economic modernization measures of recent years. By providing 0% income tax for the first five years and a gradual tax structure thereafter, the law seeks to position Peru as a regional hub for manufacturing, technology, and service exports.
A Strategic Framework to Boost Competitiveness
Law No. 32449 establishes a special tax and customs regime for the newly created special economic zones in Peru, granting benefits for up to 25 years. The goal is to create competitive environments that attract private capital, foster technological innovation, and stimulate job creation across all regions of the country. According to the regulation, the purpose of the law is to enhance national competitiveness by promoting industrial activities with added value, encouraging scientific research and technological development (R&D), generating quality employment, and strengthening non-traditional exports and services. This legal framework is designed not only to make Peru more attractive to investors but also to reduce regional disparities by enabling economic growth outside of Lima and other major urban centers. Each ZEEP will serve as a catalyst for industrial clustering, innovation, and export-driven production, helping integrate local economies into global value chains.
How the New Private Special Economic Zones Will Operate
Under the law, a private operator is defined as a private legal entity authorized to manage, promote, and develop one or more ZEEP. These operators will be responsible for overseeing the construction, administration, and overall functioning of the zones, ensuring compliance with regulations and promoting a business-friendly environment. The government’s strategy emphasizes private-sector participation. Unlike traditional free zones that rely heavily on public investment, these special economic zones in Peru will be privately developed and managed. This approach is expected to attract high-caliber investors with the capacity to build modern infrastructure, logistics hubs, and industrial facilities tailored to the needs of global markets. In addition, the zones will offer streamlined customs procedures, making it easier for companies to import machinery, raw materials, and components while maintaining competitive export conditions. The integration of customs and tax incentives will reduce operational costs and enhance supply chain efficiency—key elements for companies seeking to establish a foothold in Latin America.
Tax Benefits for Investors
One of the most attractive elements of Law No. 32449 is its favorable tax treatment. Operators and users of the zones will enjoy a 0% income tax rate during their first five years of operation, provided they meet the authorization and compliance requirements. After the initial five-year period, the tax rates will gradually increase as follows: 7.5% from the sixth to the tenth year, 10% from the eleventh to the fifteenth year, 12.5% from the sixteenth to the twentieth year, and 15% from the twenty-first to the twenty-fifth year. Even at their peak, these rates remain far below Peru’s general corporate income tax rate of 29.5%, representing a significant competitive advantage. This structure ensures that early investors benefit from substantial tax relief while maintaining long-term fiscal sustainability. However, not all industries are eligible. The law specifically excludes financial, accounting, and legal services; extractive activities such as mining and fishing; leasing, insurance, and the exploitation of intellectual property rights. This limitation ensures that the benefits are directed toward sectors that generate added value and employment rather than speculative or extractive activities.
Geographic and Sectoral Scope
While the law declares it a matter of national interest to create at least one ZEEP in each department of the country, it also makes clear that each zone must be created through a law or regulation with equivalent legal authority. This ensures a controlled expansion process aligned with regional economic priorities and infrastructure readiness. Importantly, the new regime does not apply to the existing special development zones located in Ilo, Paita, Matarani, Cajamarca, Chimbote, Tumbes, and Loreto, nor to the Special Economic Zone of Puno or the Free Trade Zone of Tacna. These will continue operating under their current frameworks, maintaining stability for ongoing projects while allowing new initiatives to take shape under the updated legislation. This dual-track approach reflects the government’s intention to modernize its investment promotion tools while preserving the continuity of previous economic policies. Over time, the coexistence of both regimes could allow for valuable comparisons and best-practice sharing across zones.
Potential Impact on Investment and Regional Development
The introduction of special economic zones in Peru marks a turning point for the nation’s industrial and export strategy. By combining tax exemptions, flexible customs regimes, and private management models, the country aims to attract investors in manufacturing, logistics, technology, and renewable energy. These zones are expected to create clusters of innovation where companies can benefit from shared infrastructure, skilled labor, and access to both domestic and international markets. The emphasis on R&D and technological development could also encourage partnerships between industry and academia, leading to knowledge transfer and higher productivity. From a regional perspective, the law supports decentralization by encouraging investment outside the capital. Departments such as Arequipa, Piura, and La Libertad, which already possess strong industrial bases and port connectivity, are likely candidates for early ZEEP implementation. Over time, other regions could follow suit, leveraging local strengths in agriculture, textiles, and manufacturing.
A Vision for Sustainable Growth
The new special economic zones in Peru are not merely a tax incentive tool—they represent a broader vision for sustainable and inclusive economic growth. By promoting private-led development and focusing on high-value-added activities, Peru aims to diversify its production base and reduce its reliance on raw material exports. Moreover, the 25-year benefit horizon provides long-term stability, giving investors the confidence needed to commit to large-scale projects. Combined with Peru’s network of free trade agreements and improving logistics infrastructure, the country is well-positioned to become a leading destination for global firms seeking to expand operations in South America.
Conclusion
Law No. 32449 signals Peru’s determination to enhance its competitiveness and attract quality investment through innovation and private participation. The establishment of new special economic zones in Peru with 0% income tax during the first five years, followed by a gradual rate increase, positions the country as one of the most investor-friendly destinations in the region. If effectively implemented, these zones could usher in a new era of industrial development, technological advancement, and regional integration—laying the groundwork for a more diversified, resilient, and dynamic Peruvian economy.
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