I am a U.S./Peruvian citizen and I'm considering buying an apartment here (first time owner) in Lima where I have been living and working for the past two years.

The down payment is actually a gift from my parents but I would have to take out a loan (local currency, Peruvian Soles) through a local bank to pay off the rest. The monthly payments are almost 80% of my monthly income at this time.

I'm new to the subject of filing taxes, deductions, and buying homes, etc. I assume I have to declare this mortgage and file taxes, but are there any taxes or withholding issues to keep in mind? I am nowhere near the minimum threshold to pay taxes (make less than $7000 per year) and do not intend to receive any tax refund.

Thank you in advance, any help would be highly appreciated as I need to make a decision and sign the paper during the upcoming days.