The double taxation agreement is a request from both Peruvian and Spanish companies to promote economic relations between the two countries.
Peru and Spain will resume negotiations to avoid double taxation in March 2025, after years of attempts to reach this agreement, according to the Peruvian ambassador to Spain, Luis Ibérico, within the framework of the road show on investment opportunities in Peru organized by the Commission for the Promotion of Peru for Exports and Tourism (Promperú).
The double taxation agreement is a demand from both Peruvian and Spanish companies to promote economic relations between the two countries, according to the first vice president of the CEOE, Miguel Garrido, who described it as "one of the challenges that can improve this economic relationship along with the increase in public-private collaboration, the reduction of bureaucracy or avoiding tax increases."
Around 500 Spanish companies participate in economic activities in the Andean country and Spain is the second country with the highest foreign direct investment in Peru, only behind the United Kingdom, with 17% of the country's total foreign investment.
The event was also attended by the president of the National Confederation of Private Business Institutions of Peru (Confiep), the country's main employers' organisation, Alfonso Bustamante, who highlighted the strength of economic relations between Peru and Spain and underlined "the great opportunities to invest in sectors such as infrastructure, renewable energy, food, education and healthcare".
In this regard, Bustamante has highlighted "the great macroeconomic stability of Peru", which ranks as the country with the lowest gross public debt in relation to its GDP in the region, as well as the second country with the lowest investment risk, according to data from Promperú.
The Peruvian ambassador has also highlighted the impetus that will be provided by the completion of the port of Chancay and the expansion of the Jorge Chávez International Airport, which will be managed by Spanish companies and will triple its capacity to receive visitors, and which, together with other infrastructure projects, will create a fundamental logistics hub for the growth of economic activity in the area.
In turn, Luis Ibérico has highlighted the natural resources that the country possesses and that benefit investment projects in renewable energy, especially wind and solar. In addition, the director of business investment promotion at Promperú, Daniel Córdova, has defined Peru as a "biodiverse country" that, thanks to its strategic position as a "gateway to the Pacific", is key for investments in energy.
In November this year, Lima will host the annual meetings of the Asia-Pacific Economic Cooperation Forum (APEC), which will be attended by the presidents of China and the United States. The country's participation in the forum gives Peru security and attractiveness, according to Córdova, and more than US$ 68 billion invested in the Andean country come from nations belonging to the forum.
Currently, Peru has 22 free trade agreements that allow it to enter 58 international markets. In the short term, they hope to improve the agreement with China as well as promote new agreements with other countries, according to Promperú.
The event was also attended by companies such as Ferrovial, Sacyr, Cuatrecasas and Acciona, which have shown their investment interest in the country as well as their vision of the challenges that sectors such as infrastructure and energy will have to face in the Andean country.
