There are many reasons to invest in Grenada, a wonderful upcoming island in the Caribbean that is safe and stable and filled with natural resources. You can get Grenada citizenship through real estate investment in pre approved enterprises or by donating to the Grenada’s National Transformation Fund. This article gives you an overview of Grenada investment opportunities on offer.
Why invest in Grenada
Rules of investment in Grenada
Launched in 2013, the Grenada Citizenship by Investment Program is enshrined in the Grenadian Parliament Act No. 15 of 2013. The Act’s objective is to “enable persons to acquire permanent residence and citizenship of Grenada by registration following investment in Grenada.”
Since its enactment, the Grenada Citizenship by Investment Program has acquired great success and has largely participated in developing the country’s economy. To top it off, Grenada living costs are cheap, and labor is cheaper compared to other countries, meaning opportunities to turn in a profit from your investment is viable.
Tax exemptions for expats in Grenada
Grenada’s tax regime is favorable to its residents and citizens. There are no capital gains, inheritance tax, income tax or wealth tax on worldwide income or assets.
Some local tax considerations do apply such as:
- There is an individual annual income tax rate for locally generated income. The first XCD 36,000 per annum is exempt, the next XCD 24,000 is taxed at 10%, and the excess thereof at 28%.
- Companies have to pay a flat tax rate of 30%. There is a withholding tax of 15% on payments sent to a non-resident for interest (except from bank deposits), rent, lease premiums, licenses, royalties, management charges, commissions, and fees.
- Grenada’s VAT amounts to 15%. For hotels and dive activities the VAT costs 10%.
- Property transfer tax for citizens is generally 5% payable by the vendor or seller.
- The annual taxes in Grenada include property tax, which is 0.2% of the market value for residential property as it relates to land and 0.3% on buildings.
- The stamp tax on business receipts is 0.70% if the gross receipts are over XCD 300,000.
Grenada Citizenship by Investment Program
The Grenada Citizenship by Investment Program is a successful scheme allowing investors and their families to get a Grenada passport in exchange for an investment in the country’s economy.
The Grenada passport considerably widens your worldwide opportunities. Ranking 76th on the Passport Index, the Grenada passport allows you visa free travel to over 140 countries such as the EU, the UK, China, Singapore, and Russia. It is also the only Caribbean passport offering the opportunity to apply for the E2 visa in the US ― allowing you to own a business and reside in the US.
Grenada citizenship investment routes
In order to apply for the Grenada Citizenship by Investment Program, two investment routes are available to investors:
Invest in the National Transformation Fund:
Established in 2013, The National Transformation Fund (NTF)’s objective is to develop Grenada’s economy and prosperity. The main applicant must donate a minimum of USD$150,000 to the NTF, or $200,000 for a family of up to four members.
Invest in pre-approved real estate:
Two options are available for individuals seeking to invest in real estate.
- Option 1: An independent investment in pre-approved real estate at a minimum value of $350,000
- Option 2: A joint investment in pre-approved tourism accommodation, at a minimum value of $220,000 per investor
Grenada investment opportunities
Tourism in Grenada
One of Grenada’s main industries is tourism. Due to Grenada’s incredible beauty, its forty white sandy beaches, turquoise waters, tropical forests, waterfalls, and mesmerizing coral reefs, the island has been attracting tourists from all over the world.
The tourism industry has been booming in the last years due to the creation of infrastructures such as the Maurice Bishop International airport, as well as the development of Grenada marinas in St Georges and Prickly Bay.
Grenada offers great opportunities to invest in luxury villas, resorts, restaurants, and outdoor activities such as diving and sailing.
Real estate in Grenada
Due to a booming tourism market and an increase in expats relocating to Grenada, the Grenada real estate market is flourishing and offers solid investment opportunities. There are many property options in Grenada such as newly built apartments, luxury villas, beach bungalows, comfortable family homes, and historical plantation homes. Properties that you acquire can become rentals and bring great investment returns.
For a minimum investment of $220,000 per investor, it is also possible to make a joint investment in pre-approved tourism accommodation and get Grenada citizenship.
Agriculture and manufacturing in Grenada
Agriculture has always been one of Grenada’s major economic assets. Grenada is one of the biggest exporters of nutmegs and mace, and it also exports banana, cloves, cinnamon, and cocoa.
Thanks to Grenada’s efficient ports and airport, Grenada’s agricultural productions can be sent all over the world. Some of Grenada’s major economic partners are the United States, Canada, Switzerland, and the Netherlands.
Manufacturing is also a great area to invest in. Grenada produces textiles, paper products, beverages, and the assembly of electronic components for exportation.
Grenada's advantages for investors
Grenada has the necessary infrastructure to support investment, such as sea and land transportation, electricity generation, telecommunications and water. Prices and costs are competitive, with electricity prices comparing favorably to the regional average and cost for broadband services have been falling.
The cost of credit is better than the regional average and living costs are the second lowest in the currency union. Grenada also has relatively low inflation and a stable exchange rate.
The country has a relatively young English speaking workforce and high levels of adult literacy (96%), making its workforce highly trainable. Tax rates on labour are low by regional and world standards, and minimum wage is competitive with other countries in the region.
Talk to a specialist about investing in Grenada
Thinking about investing in Grenada? Talk to one of our Global Citizen Solutions specialists.
Our dedicated team will work solely on your behalf. We are committed to providing a specialized service to each of our clients with the knowledge that comes with years of expertise, as well as access to a proprietary database of market information.
We give the insight and data analysis to allow our clients to make investments with confidence.
Frequently asked questions about Grenada investment opportunities
What is the Citizenship by Investment Program in Grenada?
The Citizenship by Investment Program in Grenada is a scheme allowing individuals who made an investment in the country’s economy to obtain Grenada citizenship.
What are the best investment opportunities in Grenada?
The best areas to invest in Grenada are tourism, real estate, agriculture, and manufacturing.
Can I invest in Grenada as a foreigner?
As a foreigner, it is possible to invest in Grenada.
Is it safe to invest in Grenada?
It is safe to invest in Grenada as the island has very few natural hazards, the political climate is stable and there is a very low crime rate.
Is Grenada a tax free country?
In Grenada, there are no capital gains, inheritance tax, income tax or wealth tax on worldwide income or assets. However, certain taxes apply for locally generated income.