Peru | Special Economic Zones (SEZ)

Summary

Peru is close to passing a law that establishes the framework for Private Special Economic Zones. This document reviews selected international experiences with such zones. The proposed regulatory framework appears to lack sufficient emphasis on key factors that would be critical to ensuring the success of this initiative.

Key points

• Key points:
• In the second half of 2025, the Peruvian Congress may approve the law establishing the framework for Private Special Economic Zones (PSEZs). This legislation would grant tax and customs benefits to specific areas of the country, with the aim of attracting investment and promoting regional development. The Executive Branch has raised concerns about potential fiscal and legal risks associated with the proposal.
• In this context, this document outlines several experiences with Special Economic Zones, both international and domestic, aiming to identify the factors that contributed to their success — namely, their consolidation as spaces that promote investment, formal employment, and productive linkages — as well as those that hindered it. Based on this analysis, the document examines the regulatory framework that is expected to be approved in Peru for the establishment of PSEZs.
• The experiences described in the document suggest that Special Economic Zones are effective in promoting investment, formal employment, and productive linkages when they have adequate infrastructure, strong governance, a long-term vision, and integration into value chains. Fiscal incentives do not appear to be the main driver, nor are they sufficient on their own to ensure the success of these zones.
• In that sense, the proposed PSEZ legislation invites debate, as it is skewed towards the granting of tax benefits, with less emphasis placed on setting technical criteria for the creation of these zones, requiring clear and verifiable results in terms of investment and formal employment, strengthening institutional capacity, providing adequate infrastructure, and ensuring the availability of the necessary human capital. The risk is that it could repeat past mistakes.

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