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Buying Tips

Investing in Grenada

Investing in Grenada is straightforward, with no restrictions on property or business for locals or foreigners. It's known for political stability, operating as a democratic state with regular elections. The governance structure includes a governor general, a prime minister, and a bicameral Parliament. The Judiciary is independent, following English common law, with the UK's Privy Council as the highest court.

Grenada offers a pristine environment in the Caribbean, with a high quality of life, low crime, and untouched natural beauty. It's classified as an upper middle-income country by the World Bank. With a population of 110,000 and spanning 133 square miles, Grenada boasts a rich historical and cultural heritage, making it an attractive destination for residents, investors, tourists, and students alike.

INFORMATION FOR PURCHASERS OF RESIDENTIAL LOTS

ALIEN LANDHOLDING LICENCE

 

All non-nationals are required to obtain an Alien Landholding Licence to hold interest in land, real estate or shares or to be directors of companies that own real estate. The application process can take approximately 3-6 months. When seeking an Alien Land Holding License, you will need to provide a police record, and two character references.

PROPERTY TRANSFER TAX

 

Non-Nationals

Once the landholding license has been granted a fee of 10% on the value of the land or interest in land, share or debenture is charged and payable to the Government of Grenada upon completion. When selling 15% of the selling price is charged. The first $20,000 E.C. is exempted.

Grenada Citizens 

When selling, 5% of the selling price is charged and payable to the Government upon completion. No property transfer tax is applicable when purchasing.

PROPERTY TAX

Property tax is the charge placed by the Government on real property. The property is assessed at market value and a taxable rate is applied based on the land use classification.

Current rates 



Two separate rates are set for each class of property, a rate for the building and the other for land. The rates are as follows:

  • Residential: 0.2% - land to 0.3% - building

  • Hotel: 0.3% - land to 0.02% - building

  • Commercial: 0.5% - land to 0.3% - building

  • Agriculture (exploited): 0.00%

  • Agriculture (idle): 0.2%

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The tax is payable by the owner as well as by occupiers of buildings on extended family land. Property tenants are also entitled to pay Property Tax where an arrangement is stipulated in the lease agreement. The tax is made payable to the Government of Grenada.

Exemptions



An exemption of $100,000 is deducted from the building value of an owner-occupied property. Only one property can be given a homestead exemption. The remaining assessed value is multiplied by the classification rate.

The tax is due and payable from the 30th of June each year. The property owner is entitled to 5% discount if 50% of the tax is paid by March 31st and the remaining 50% is paid by June 30th.

For more information visit: Government of Grenada - Inland Revenue Division: Property Taxes

OTHER COSTS

  • Stamp Duty is 1% of the agreed purchase price.

  • Legal fees are generally 2% of the agreed purchase price + 15% VAT (Value Added Tax) on fees

  • Construction costs can be estimated between US $130 and US $170 per Square foot, subject to finishes.


FINANCING

Local banks mandate that buyers declare the "source of funds." For transactions exceeding EC$ 250,000, approval from the Grenada Ministry of Finance is necessary.

For a lender intending to buy land with a mortgage, discussing loan needs with a lender and securing pre-approval to assess affordability is crucial. Generally, it's advised that monthly mortgage payments remain under one-third of the total monthly income. Most lenders anticipate mortgage repayment before the age of 70, thus adjusting payment schedules according to the borrower's age and the years remaining until reaching 70. Nonetheless, there's usually room for flexibility, and it's advisable to consult with a mortgage or loan officer to establish suitable loan terms.

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