After Paramount’s 2023 “Transformers: Rise of the Beasts” featured Peru extensively, interest in the South American country spiked, particularly in the ancient citadel of Machu Picchu, the colonial city of Cusco and the Peruvian Amazon, which formed key backdrops to the latest in the franchise. But Peru is keen to show off its lesser known and much underrated sites.
“Machu Picchu is one of our flagship attractions, but it is not the only one. We have many other outstanding destinations: Arequipa, of course, but also Kuélap and Ayacucho, among others. What we are seeking is diversification, and promoting Peru as a filming destination plays a key role in helping us diversify and showcase the richness of our country beyond a single site,” says Maria del Sol Velasquez, director of Peru’s tourism body, PromPeru, which remains the country’s de facto film commission.
Colca Valley, Arequipa. Courtesy of PromPeru
© Trailer Films
The filming of “Transformers” here had a significant impact, as it led— for the first time— to the creation of a multisectoral working group aimed at analyzing and proposing state-led measures to encourage foreign investment in film production within Peruvian territory,” says Erika Chavez, head of the culture ministry’s audiovisual directorate, DAFO.
“This initiative was convened by the Ministry of Economy and Finance itself, thereby placing—for the first time—public dialogue on the agenda to strengthen policies that promote the film industry. As a result of this executive working group, various strategies were proposed, such as the creation of a Film Commission and a tax incentive law,” she adds.
The most immediate result of having “Transformers” shoot in Peru was the introduction of ATA, a new visa aimed at facilitating the entry of talent and crew.
“Transformers: Rise of the Beasts”
Courtesy of Paramount Pictures
The new film law includes a tax incentive similar to Colombia’s transferable tax credit, CINA, that has been tapped by international producers with increasing success. Known by its acronym CIPA, Peru’s Certificate of Investment in Audiovisual Production covers broader investment in production assets and services tied to producing an audiovisual project in Peru.
The new law will become operative once implementing regulations are ironed out this year. Some possible tweaks to it could still see changes to the final draft.
Issued by the Ministry of Economy and Finance, the CIPA can be used by producers to reduce their corporate income tax or Value Added Tax by up to 50%. They also have the option to transfer or sell their CIPAs if they don’t need the full credit.
Says Velasquez: “We have formed working groups together with the Ministry of Culture and the private sector, precisely to determine which economic incentives would be best adapted to the reality of our country.” Their ultimate objective is to streamline the administrative and logistical process for location shoots.
“What we’re looking for is to attract international productions, whether they are cinema, television, series, advertising, music videos, etc., with the specific goal of increasing the flow of foreign tourism and help us to showcase a country that interacts between culture, tradition and modernity as well,” Velasquez points out.
“Lately, more European productions have been filming in Peru,” notes local producer Bruno Canale of Apu Prods., reflecting on the current slump in Hollywood. He provided production services to “Transformers: Rise of the Beasts” as well as Paramount’s “Dora and the Lost City of Gold” in Peru but his most recent work has been with Germany’s Komplizen Films’ “Years With You” (“Die Jahre mit der”) with actress Jella Haase (Netflix’s “Kleo”) and high-end travel adventure company Belmond’s campaign for its Andean Explorer luxury train, among others.
Local film production, a bellwether on how prepared a country is to provide infrastructure in terms of equipment, crew and talent, continues at a healthy clip, spurred by state funds – albeit limited – that cover projects from their development and production to their distribution, marketing and even restoration. Last year, 79 films were produced, down from the peak of 96 the year prior but still within the average tally of the last five years.
“Peruvian cinema is not yet an industry, mainly because it lacks sufficient film laws necessary for its integration and development compared to other countries in the region. However, it has grown significantly, above all thanks to private efforts,” says Miguel Valladares of Tondero Films, which has produced seven out of the 10 biggest local box office hits in Peru, led by its “Asu mare” franchise.
“Last year, more than 50 Peruvian films were released, including both feature films and documentaries. Unfortunately, not all of them can be distributed in the best way, and there is increasingly less space to compete with major international blockbusters. I remember that last year, in a single week, there were seven Peruvian films showing in theaters at the same time—this is a record never before seen in Peruvian cinema,” he points out.
Among the top films of 2025, Barbara Mori Lima-set culinary drama “Mistura,” which ranks third after historical action thriller “Chavín de Huántar: The Rescue of the Century” and road movie comedy “Single, Married, Widowed, Divorced 2,” is in talks for U.S. distribution. All three account for 77% of last year’s box office.
Ricardo de Montreuil’s Lima-set culinary drama ‘Mistura’ is closing a U.S. distribution deal. Courtesy of Seine Pictures.
Tondero has lately gone back to its roots in musical theater and stand-up comedy, given the current dip in movie-going. “Attendance at live shows is currently stronger than attendance at movie theaters, so this year we will diversify across both markets, unlike in previous years,” says Valladares. Among its live shows in development are local adaptations of musicals “Mrs. Doubtfire: The Musical” and “Hedwig and the Angry Inch.” Tondero is even planning an unprecedented live immersive experience tied to its upcoming movie, the vigilante thriller “La gran sangre,” which starts shooting in April.
Valladares doubts that the current film law, as it stands, will suffice to sustain local film production. “Film laws always help improve things. Unfortunately, this new law tries to improve only certain aspects, leaving aside the entire universe of Peruvian cinema, especially regional cinema.”