Investing in Grenada

ALIEN LAND HOLDING LICENCE

The land holding licence requires that all foreign persons or firms wishing to buy real estate in Grenada must apply to the Government under the Alien Land Holding Ordinance for a licence.  The process generally takes around three months.  In order to apply for the licence, the following documents are required:

  • Bankers reference
  • Police certificate
  • Character reference

PROPERTY TRANSFER TAX

Aliens
Once the land holding 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.

Grenada Citizens
When selling, 5% of the selling price is charged and payable to the Government upon completion.

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:

 

 Classification Land Building

 


Residential

Hotel

Commercial

Agricultural


0.1%

0.3%

0.5%

0.0 %


0.15%

0.2%

0.3%

0.0%


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.

Exemptions
An exemption of $100,000.00 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 1st January each year.  The property owner is entitled to 5% discount if 50% of the tax is paid by March 31 and the remaining 50% is paid by June 30th. From July 1st, a 10% fine shall be added plus 2% each month, if the tax remains unpaid.

OTHER COSTS

  • Stamp Duty is 1% of the agreed purchase price
  • Legal fees are generally 2% of the agreed purchase price
  • Building costs can be estimated between $100 US and $120 US per square foot

LAND DEVELOPMENT

The Planning and Development Control Authority regulate 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:

  • Three copies of the application form
  • Three copies of drawings to include a location plan, site plan, floor elevation and sectional plans and structural engineering plans
  • A topography plan

Processing time is approximately 2 months.

GOVERNMENT CONCESSIONS

The Government of Grenada encourages tourism development and the development of new businesses and offers a range of incentives and concessions to potential investors.  These include the following:

  • Full exemption from taxes on corporate profits for up to ten years
  • Exemption from customs duties and taxes on articles of hotel equipment to equip the hotel property
  • Exemption from customs duties and taxes on commercial vehicles
  • Exemption from customs duties and taxes on materials for construction