Walter Mazzarri's side have long been linked with a move for the Argentina international and finally completed the capture of the 25-year-old on Friday.
Pereyra, who was Watford's second signing of the day following the acquisition of Younes Kaboul from Sunderland, must wait for a work permit to be granted before he is available for selection.
During his two seasons at Juve Pereyra won successive Serie A and Coppa Italia titles, scoringsix goals in 68 appearances.
Pereyra's club form saw him recognised internationally by former Argentina boss Gerardo Martino, and he has since won 10 caps including two in the 2015 Copa America.
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