Why You Should Invest in Grenada in 2024

Grenada is a wonderful upcoming Caribbean island with boundless potential for investment. The country is safe and politically stable, has a growing tourism industry, and is filled with natural resources, including cocoa, nutmeg, and deep-water harbors, facilitating international trade throughout the Caribbean region and across continents.

Besides the country’s abundant natural resources and political stability, you can invest in Grenada and obtain a Caribbean passport through the Grenada citizenship by investment program (CBI). Grenada CBI applicants can acquire second citizenship by making a foreign direct investment in the country’s economy through real estate investments or a Grenada government fund donation designated for the country’s National Transformation Fund (NTF).

Why Invest in Grenada

High quality of life: Grenada citizens and residents benefit from a peaceful and pristine environment, with the country boasting a low crime rate, and vast unspoiled natural beauty.

Political and economic stability: Grenada is a safe and economically stable Caribbean country with a profound history of democracy, political neutrality, and emphasis on national security.

Economic opportunities: Grenada has business and trade-friendly policies, with opportunities ranging from telecommunication services to tourism. Owing to trade and investment agreements with other OECS member states and CARICOM countries, businesses established in Grenada can benefit from preferential access to regional markets.

Second citizenship: Investing in Grenada is a path to second citizenship. Investors can obtain Grenada citizenship and a Grenadian passport by contributing to the country’s social and economic development through a donation of $235,000 to the country’s government fund.

Global connections: Direct flights from Maurice Bishop International Airport are available to key destinations worldwide, including the US, Canada, and European Union countries.

Tax optimization: Grenada has a favorable tax environment, with no foreign income, inheritance, wealth, or capital gains tax.

US residency: Grenadian citizens benefit from qualifying for the US E-2 Visa and a path to permanent residency there.

Top Industries for Investing in Grenada

Tourism

The tourism and hospitality sector is the cornerstone of the Grenada economy, with the southwestern region of St George’s attracting considerable attention, especially for water sports enthusiasts. The trend of ecotourism is rising in Grenada, with numerous eco-friendly initiatives springing up across the parishes of St David and St John. Investors can explore new eco-real estate opportunities in these areas, which qualify as eligible investments for the Grenada citizenship program.

Quarrying

While Grenada doesn’t engage in commercial mining of minerals, quarrying operations are conducted to extract valuable materials like basalt and gravel.

Spices

Nutmeg cultivation earned Grenada its moniker of the “Island of Spice,” establishing a strong reputation for quality. This reputation translates into consistent global demand, with Grenada being the world’s second-largest producer of nutmeg.

Real estate

Over the last few years, international investors from Canada, the US, and the UK have increasingly shown interest in Grenada’s property market, contributing to its resilience and bolstering the local tourism sector. A significant contributor to the growth of the Grenada real estate market is the opportunity to obtain citizenship and a Grenada passport by investing in pre-approved real estate projects.

Grenada Citizenship by Investment Program

The Grenada citizenship by investment program is a Caribbean immigration initiative allowing foreign investors and their family members to get a Grenada passport in exchange for an investment in the country’s economic and social development. Investors have two options to qualify: A non-refundable contribution or a property investment.

A Grenada passport acquired through the Grenada CBI program considerably widens your worldwide opportunities. Ranking 76th on the Global Passport Index, the Grenada passport allows you visa free travel to over 140 countries, such as the UK, China, Singapore, Russia, and Europe’s Schengen Area.

It is also the only Caribbean passport offering the opportunity for the primary applicant and their family members to apply for the E-2 Visa in the US ― allowing you to own a business and reside in the United States.

Grenada citizenship investment options

In order to apply for the Grenada citizenship by investment program, investors have the option of one of two investments:

Invest in the National Transformation Fund:

The Grenada National Transformation Fund (NTF) was introduced in 2013 to develop Grenada’s economy and social prosperity. A single applicant must make a financial contribution of at least $235,000. One the attractive investment incentives for a minimum contribution to the National Transformation Fund is $235,000qualifies for a family of up to four.

Invest in pre-approved real estate:

Those looking to invest in the Caribbean real estate market can choose from a sole or joint Grenada real estate investment:

• Sole: Requires a pre-approved real estate purchase worth at least $350,000
• Joint: Requires a pre-approved real estate purchase of at least $270,000 per investor.

Eligibility requirements for Grenada citizenship by investment

The Grenada’s government will consider the following applicants for its economic citizenship program:

Main applicant

• 18 or over
• Of outstanding character
• In good health
• Clean criminal record

Family members

• Spouse
• Children under the age of 18
• Children aged 18 to 29, supported by the main applicant or spouse
• Children aged 18 or over who are physically or mentally challenged
• Dependent parents or grandparents of the main applicant or spouse, who are fully supported by the main applicant
• Siblings of the main applicant or spouse, whether biological or adopted, aged at least 18, unmarried, and with no children

Rules of Investment in Grenada

The Grenada citizenship by investment program is enshrined in the Grenadian Parliament Act No. 15 of 2013. The Grenada citizenship by investment act is designed to “enable persons to acquire permanent residence and citizenship of Grenada by registration following investment in Grenada.”

Since its introduction, the Grenada citizenship by investment program has proven to be a critical sector, playing a significant role in driving economic development by facilitating investments within the country. An added benefit is that the cost of living in Grenada is cheap, and labor is more affordable compared to other Caribbean CBI countries. Grenada passport holders can enjoy lower operational costs and potentially higher returns on their investments.

Tax Exemptions for Expats in Grenada

Grenada’s tax regime is favorable to its residents and citizens and provides attractive fiscal incentives. There is no capital gains, inheritance tax, income, or wealth tax on worldwide income or assets.

Some local tax considerations do apply, such as:

• 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 ten percent, and the excess at 28 percent.
• Companies have to pay a flat tax rate of 30 percent. There is a withholding tax of 15 percent on payments sent to a non-resident for interest (except bank deposits), rent, lease premiums, licenses, royalties, management charges, commissions, and fees.
• Grenada’s VAT amounts to 15 percent. For hotels and dive activities, the VAT cost is ten percent.
• Property transfer tax for citizens is generally five percent payable by the vendor or seller.
• The annual taxes in Grenada include property tax, which is 0.2 percent of the market value for residential property related to land and 0.3 percent on buildings.
• The stamp tax on business receipts is 0.70 percent of the gross receipts over XCD 300,000.

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 worldwide.

The tourism industry has been booming over the last few 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.

Pre-approved Grenada real estate investment opportunities to acquire Grenada citizenship by investment, such as luxury villas, resorts, and restaurants. Visitors can enjoy numerous 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. Grenada has many property options, including newly built apartments, luxury villas, beach bungalows, comfortable family homes, and historic plantation homes.

Many investors acquire Grenada property to rent out and earn significant returns on investment while gaining Grenadian citizenship in the process. Additionally, Grenada is the only Caribbean country offering dual citizenship by investment with real estate that is not at risk of hurricanes impacting Caribbean islands.

Investment incentives include making a minimum investment of $270,000 for a joint investment or $350,000 for a sole investment in pre-approved accommodation to be granted citizenship and Grenada passports.

Agriculture and manufacturing in Grenada

Agriculture has always been one of Grenada’s major economic assets. Grenada is one of the biggest exporters of nutmeg and mace, and it also exports bananas, cloves, cinnamon, and cocoa.

Thanks to Grenada’s efficient port and airport infrastructure, Grenada’s agricultural products can be transported all over the world. Some of Grenada’s major economic partners are the United States, Canada, Switzerland, and the Netherlands.

Manufacturing is also an excellent Grenada investment. 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 average for other Caribbean countries, offering citizenship by investment and renewable energy widely available.

Investors obtaining Grenada citizenship by investment can employ a young English-speaking workforce with a high level of adult literacy at 96 percent. The country boasts one of the region’s top universities in St George’s University. Tax rates on labor are low by regional and world standards, and minimum wage is competitive with other countries in the region.

Through policies for foreign investment facilitation and established business process outsourcing, doing business in Grenada is relatively easy. Grenada is 84th in the world in ease of doing business, with a strong performance in construction permits (16th), investor protection (24th), incorporating a business (40th), labor practices (51st), cross-border trade (63rd), credit access (68th), and tax payments (74th).

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 insight and data analysis to allow our clients to make foreign investments with confidence.

Frequently Asked Questions about Grenada Investment Opportunities

What is the citizenship by investment program in Grenada?

The Grenada citizenship by investment program (CBI) is an immigration program allowing individuals to obtain Grenada citizenship status and a second passport by Contributing to Grenada’s National Transformation Fund or purchasing government-approved real estate. All applications to the Grenada CBI program are processed by the Grenada Citizenship by Investment Unit.

What are the best investment opportunities in Grenada?

The best areas for Grenada investment according to the country’s investment promotion agency include:

• Tourism
• Real estate
• Agriculture
• Manufacturing

Lucrative  markets include spices. The country is one of the world’s top producers of nutmeg. A government-approved real estate investment in the country allows investors to gain dual citizenship status.

Can I invest in Grenada as a foreigner?

As a foreigner, investing in Grenada is possible. Grenada’s citizenship program actively encourages foreign investment in the country by granting Grenada citizenship to successful applicants and eligible family members, including dependent children and dependent parents. Applicants must fulfill the requirements of a strict due diligence process; however there is no requirement to visit Grenada during the entire process or to maintain citizenship.

Is it safe to invest in Grenada?

Grenada is a very safe country to invest in, with many reputable investment services to choose from. The Grenada island is located in the Southeastern Caribbean Sea and experiences very few natural hazards compared to other Caribbean countries. The political climate is stable, and the crime rate is very low. Tourism is growing, and a Grenada property investment is expected to benefit from this trend, offering investors a secure and promising investment opportunity for long-term growth and stability.

Is Grenada a tax free country?

Grenada is not a Caribbean tax haven, but the tax incentives for investors in Grenada include no capital gains, inheritance, income, or wealth tax on global income or assets.

How much does it cost to become a CBI in Grenada?

The lowest cost to become a Grenada citizen by investment is $235,000 for a single applicant. Investors applying for a spouse and two dependent children must make the same investment of a non-refundable contribution with the minimum value of $235,000. Additional dependents, such as financially dependent parents, require a further donation of at least $25,000 to $75,000 per dependent.

In addition to the qualifying investment for Grenada citizenship by investment, applicants are required to pay government fees during the application process, including due diligence fees and mandatory interview fees.

Is Grenada a good place to invest?

Many view property in Grenada as a sound investment choice, anticipating substantial returns supported by the country’s stable economy. In addition to financial returns on investment, the benefits of investing in Grenada real estate include earning Grenada nationality from the investment.

The Grenada citizenship program grants investors who buy government-approved property in the country second citizenship and a Caribbean passport, providing visa free access to over 140 countries worldwide. New Grenada citizens and future generations can benefit from one of the most sought-after Caribbean countries that permit dual citizenship and offer enhanced visa free travel.