Income tax rates are rising fast in wealthy economies such as the United States. As a result, plan for your future and acquire citizenship now in the best Grenada tax haven. Escape all international income tax under the protection of Grenada tax residency. Continue reading→
Have you been dreaming of tax free residency? Grenada tax residency provides exactly what you are looking for. This is the chance of a lifetime. Additionally, Grenada is the “Spice Island” of the Caribbean where you can sit on the beach and smell the sweet scent of nutmeg in the air. The Grenada citizenship by investment program is a great opportunity to acquire both life in a Caribbean paradise and Grenada tax haven benefits.
Successful CBI applicants can relocate to Grenada and enjoy no tax on international income, no wealth tax, plus no capital gains or inheritance tax. Furthermore, Grenada citizens who reside overseas may also have the opportunity to enjoy Grenada’s tax free benefits. It is indeed the best of both worlds!
Proper tax planning starts with second citizenship. As a result, CBI investors have the foundation to obtain global access and freedom. This includes lowering your tax bill or even eliminating your global income tax obligations altogether.
Read more and calculate your tax exemptions. To be clear, Grenada does charge personal income tax on locally sourced income. Additionally, there are business taxes, value added tax (VAT), property taxes et cetera that may apply. Discover the benefits and obstacles for your personal circumstances.
How to Obtain Grenada Tax Residency
Grenada citizens who reside on the island for a minimum of 183 days continuously during the applicable fiscal year are resident for tax purposes. Additionally, corporations that are incorporated in Grenada or centrally managed or controlled in Grenada are considered resident for tax purposes.
For individuals, Grenada tax residency is most effective if you have already renounced your original citizenship. Dual citizenship creates the risk you may still be liable for tax in another country.
Furthermore, if you are a resident in another country outside Grenada it is possible they may try to impose global income tax on you. Proper tax planning is essential to obtain the full benefits of Grenada tax residency.
In addition, those who choose to reside outside of Grenada can obtain supplemental documentation to support their case for Grenada tax residency status. Supporting documents we can help you obtain include a Grenada driver’s license, SIM card/phone bills and certificate of tax registration. Additionally, local real estate ownership will provide a physical address in Grenada.
Government approved real estate can also be used to qualify for the Grenada citizenship program. As a result, investors can sell the property at the end of the 5 year holding period to recoup their capital while still retaining Grenada citizenship in perpetuity.
Individual Income Tax Requirements
Both resident and non resident Grenada citizens are totally exempt from tax on income sourced outside of Grenada. However, residents and non residents are liable for tax on locally sourced income.
According to the Grenada Inland Revenue Division website all “Corporations, trustees, sole traders, partners within partnerships and all employees who earn in excess of $3,000 monthly or $36,000 annually” are subject to local income tax.
Furthermore, according to the S.R.O. 25 of 2018 Income Tax (Amendment) Order found here the applicable tax rate on all personal income is now 28%.
|Individual Income Tax||Tax Rate|
|$0 – $36,000||0%|
|$36,001 and above||28%|
|Capital Gains||No Capital Gains Tax|
The Grenada Inland Revenue Division Website also clarifies “The assessable income of any person should include the gains or profits from or by way of” –
- Any Business
- Any employment
- Rentals and Royalties
- Interest (unless exempt)
- Premiums, Commissions, Fees and License Charges
- Annuities and Other Periodic Receipts
- Gains or Profits or Amounts deemed to be income under this act and
- Any other gains or profits accrued to that person which are not included under Part V, Division I, subsection 29 of the Grenada Income Tax Act.
Corporate Income Tax Requirements
A resident Grenada company is taxed on international income. However, a non resident company is taxed on income derived or sourced from within Grenada. Additionally, branches of the company are taxed at the same rate.
|Corporate Income Tax||Tax Rate|
|$36,001 and above||28%|
|Capital Gains Tax||No Capital Gains Tax|
A company is also required to pay annual stamp tax on its gross receipts which includes revenues from rental income, dividend income, interest income, investment income, cost of materials from stocks, and sale or disposal of goods and services.
|Revenues per annum||Rate|
|$300,000 and under||0.5%|
|$300,000 and above||0.75%|
Value Added Tax (VAT)
VAT is charged by companies to consumers at a rate of 15% on most goods and services or 10% on hotel accommodations and dive operations. Additionally, cell phones (talk and text) accrue a VAT rate of 20%. Also, some goods are taxed at a 0% rate.
Only companies registered with the government can charge VAT. Furthermore, the taxable amount is payable to the Grenada Government through the Inland Revenue Division VAT office.
Real Property Tax
The government of Grenada charges tax on real property. Additionally, the amount of the tax is based on a percentage of the assessed market value of the property. Annual tax assessment is sent out starting on January 1st.
Property owners who pay 50% of the due amount before March 31st receive a 5% deduction. The remaining 50% must be paid by June 30th to avoid late penalties.
Furthermore, there is a homestead exemption of $100,000 for owner occupied property. However, if the owner owns multiple properties, only one can be classified as a homestead.
Multiplication of the applicable property tax rate by the property value (minus any exemption) equals the payable amount. Property tax rates are as follows:
|Type||Land Rate||Building Rate|
Property Transfer Tax
Those who buy or sell property by deed transfer in Grenada are required to pay transfer tax whether the transaction is a sale, gift or other method of disposition. *Note – the transfer of real estate held by share ownership does not attract transfer taxes.
Additionally, property transferred by Deed of Gift is only taxable on the amount that exceeds $150,000. Property dispositions by other means are taxed only on the amount exceeding $20,000. The tax rates paid on the aforementioned amounts are as follows:
|Subject to Tax||Tax Rate|
|Seller (Grenada Citizen)||5% non CBI property|
|Seller (Grenada Citizen)||2.5% CBI property*|
|Seller (non citizen)||15%|
|Buyer (Grenada Citizen)||0%|
|Buyer (non citizen)||10%|
|All Buyers||1% Stamp Duty Tax|
*Our real estate trust structure allows the CIP investor to transfer ownership of their unit without attracting transfer taxes.
Acquire Grenada Tax Residency with Citizenship by Investment
In exchange for investment into the local economy the Grenada government will grant Grenada citizenship to qualified applicants of the Grenada citizenship by investment program. As a result, successful applicants will be able to successfully obtain Grenada tax residency and many other benefits.
Qualified investment options include a minimum US$150,000 donation or a minimum US$200,000 investment into government approved Grenada real estate. Furthermore, all application documents must be completed and submitted along with supporting documents for review by our legal team.
After thorough review the complete application package is submitted to the Grenada CBIU. Your passport(s) and certificate of naturalization will be received within 2-4 months time.
Enjoy Grenada Tax Residency Benefits
There are no nationality restrictions to apply for the Grenada citizenship program. Additionally, successful applicants receive many other benefits of the Grenada passport including:
- US E-2 Visa Eligibility and the right to live and work inside the United States.
- Visa free or visa on arrival access to over 144 countries including China, UAE, UK, Russia and India.
- Grenada Legal System is based on English Common Law.
- The national Language is English.
- As a Grenada citizen you become a citizen of the British Commonwealth.
- The right to live and work in all OECS and CARICOM countries.
- No requirement to ever visit the Grenada during or after the application process.
- No personal interview requirement.
- Offshore asset disclosure is not required by Grenada e.g. FBAR.
- The application process is completely confidential with no requirement to notify your country of origin.
Contact me today and begin you journey to global access and freedom. The Grenada citizenship program is the key to successfully establishing Grenada tax residency and enjoying the many benefits of global citizenship.