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INVESTING IN GRENADA
OVERVIEW
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Investing in Grenada is very easy. There are no restrictions for investment in property or businesses for locals or foreigners. Grenada is one of the most politically stable countries in the region. It is a democratic state with a Westminster-style Parliamentary form of government and constitutionally held elections every five years. It has a governor general (representing Queen Elizabeth II, Head of State), a prime minister and a cabinet (executive branch), and a bicameral Parliament with an elected House of Representatives and an appointed Senate (legislative branch).
The Judiciary is independent of the executive and the legislature. Jurisprudence is based on English common law. The Privy Council of the United Kingdom serves as the highest appellate court.
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Grenada has one of the most pristine physical environments in the Caribbean and offers residents, investors, tourists, migrant workers and overseas students a high quality of life, low crime, and a relatively unspoiled natural environment. The country is classified as an upper middle-income country by the World Bank.
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The physical beauty and tropical climate of the country are complemented by its rich history, and vibrant living cultural heritage. The Island’s easy rhythms and friendly openness of its residents evoke an atmosphere that has long since vanished elsewhere. Residents are famous for their friendly and hospitable nature.
The country counts 110,000 inhabitants and the island of Grenada is 21 miles long by 12 miles wide making the total area 133 square miles.
GRENADA IN A NUTMEG SHELL
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Grenada is known as the "Isle of Spice" and is located in the south-eastern region of the Caribbean, 100 miles north of Venezuela. Grenada is a three-island state comprising Grenada, Carriacou and Petite Martinique. Grenada is the largest of the three and is widely regarded as one of the most beautiful and unspoiled islands in the Caribbean.
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Its volcanic origin has produced a wide selection of tropical scenery ranging from mountainous rainforests, with a large variety of plant and animal life, to glorious waterfalls, hot springs and
crater lakes. The coastline is indented with an equal variety of stunning bays and beaches. Historical delights include military forts with magnificent views of the picturesque St. George's.
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INFORMATION FOR LAND BUYERS
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ALIEN LANDHOLDING LICENCE
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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 process takes approximately three months.
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PROPERTY TRANSFER TAX
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Non-Nationals
Once the landholding licence 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.
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Grenada Citizens
When selling, 5% of the selling price is charged and payable to the Government upon completion.
PROPERTY TAX
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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.
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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:
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Residential: 0.2% to 0.3%
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Hotel: 0.3% to 0.02%
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Commercial: 0.5% to 0.3%
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Agriculture (exploited): 0.00%
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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. Tenants of Property 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.
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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.
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The tax is due and payable from the 30th 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.
OTHER COSTS
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Stamp Duty is 1% of the agreed purchase price.
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Legal fees are generally 2% of the agreed purchase price
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Building costs can be estimated between $100 US and $120 US per square foot
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INFORMATION FOR PROPERTY DEVELOPERS
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LAND DEVELOPMENT
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The Planning and Development Control Authority regulates land development. Building permits are required for the development of property in Grenada. An application must be submitted to the Planning and Development Control Authority and must include the following:
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Three copies of the application form
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Three copies of drawings to include a location plan, site plan, floor elevation and sectional plans and structural engineering plans
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A topography plan.
Processing time is approximately two months.
GOVERNMENT CONCESSIONS
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The Government of Grenada encourages tourism development and the development of new businesses and offers a range of incentives and concessions to potential investors.
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These include tax exemptions, exemptions on customs duties on materials for construction, articles of hotel equipment, and commercial vehicles.
Climate
Dry season occurs between January and May and although the rest of the year is the rainy season, rainfall is usually short and does not occur daily. The temperature ranges between 75º F and 87º F, with average temperatures in the low 80º's F made more comfortable by the trade winds.
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Currency
The currency is the Eastern Caribbean (EC) dollar, which is linked to the US dollar at EC$2.67 to US $1.00. All major credit cards are accepted by hotels, car rental companies and shops.
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Electricity
Voltage is 220 volts, 50 cycles. Appliances rated 110 volts can be used with a transformer or a simple adapter in some cases.
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Medical Facilities
There is the General Hospital as well as a modern private clinic SAMS in St. George's, a smaller hospital in Mirabeau, St. Andrew's . There are also several private doctors, most of whom can also make house calls.