Mi amigo peruano vive aquí.

Mi means my. It is a possessive adjective, and in Spanish it usually goes before the noun:

• mi amigo = my friend
• mi casa = my house

Unlike English, Spanish does not use do/does here, so mi amigo peruano is simply the noun phrase my Peruvian friend.

Because mi without an accent means my.

• mi = my
• mí = me after a preposition, as in para mí = for me

So in this sentence, mi amigo is correct because you are showing possession: my friend.

Amigo is the masculine singular form, so it usually refers to a male friend.

• mi amigo = my male friend
• mi amiga = my female friend

If the friend were female, the sentence would be:

• Mi amiga peruana vive aquí.

Notice that peruano would also change to peruana to match.

In Spanish, nationality words and many descriptive adjectives usually come after the noun.

So:

• amigo peruano = Peruvian friend
• literally: friend Peruvian

This is normal Spanish word order. English often puts adjectives before the noun, but Spanish often puts them after.

Yes. In Spanish, adjectives usually agree with the noun in gender and number.

Here:

• amigo is masculine singular
• so the adjective is peruano (masculine singular)

Other possible forms are:

• amiga peruana = female singular
• amigos peruanos = masculine plural / mixed group
• amigas peruanas = feminine plural

Vive is the third person singular present form of the verb vivir, meaning to live.

The verb vivir is conjugated like this in the present tense:

• yo vivo = I live
• tú vives = you live
• él/ella/usted vive = he/she/you live

Since mi amigo peruano is he, the correct form is vive.

Spanish often leaves out subject pronouns because the verb ending already tells you who the subject is.

So instead of saying:

• Él vive aquí

you can simply say:

• Vive aquí

And in your full sentence, the subject is already clearly stated:

• Mi amigo peruano vive aquí.

So adding él would usually be unnecessary unless you want emphasis or contrast.

Aquí means here.

It has a written accent on the í to show where the stress falls: a-QUÍ.

That accent mark is part of the correct spelling, so it should not be omitted in standard writing.

A useful comparison:

• aquí = here
• allí = there
• ahí = there, over there

Normally, no. The natural order is:

• Mi amigo peruano vive aquí.

Putting peruano before amigo sounds unusual in standard Spanish and is not the normal way to express nationality.

With nationality adjectives, Spanish strongly prefers placing them after the noun:

• un profesor español
• una estudiante francesa
• mi amigo peruano

Because vivir means to live, in the sense of to reside somewhere.

• vive aquí = he lives here
• está aquí = he is here

These are different ideas:

• Mi amigo peruano vive aquí. = This is where he lives.
• Mi amigo peruano está aquí. = He is here right now.

So vive is correct if you mean his place of residence.

A natural Spain pronunciation would be approximately:

mee ah-MEE-go pe-roo-AH-no BEE-beh ah-KEE

A few useful notes:

• amigo is stressed on mi: a-MI-go
• peruano is stressed on a: pe-ru-A-no
• vive is stressed on the first syllable: VI-ve
• aquí is stressed on the last syllable: a-QUÍ

In much of Spain, v and b sound very similar, so vive may sound close to bibe to English speakers.

Yes, depending on context, it can mean either:

• my friend, who is Peruvian
• my Peruvian friend

In this sentence, both ideas point to the same person, so the meaning is clear.

Spanish does not need extra words here. The adjective peruano simply describes amigo.

It is neutral and natural in both formal and informal contexts.

Nothing in the sentence is especially formal or informal:

• mi is neutral
• amigo peruano is neutral
• vive aquí is neutral

So you could use this in normal conversation, writing, or explanation without any problem.