Over the last decade, Grenada’s tax regimes have evolved into an appealing option for high-net-worth people and their businesses. Individuals and businesses are subject to rates that are significantly lower than in other nations. This has resulted in an influx of investors seeking financial independence as well as a solid passport through their Citizenship by Investment Program.

What is the Grenada Citizenship by Investment Program?

Applicants must donate $150,000 (in USD) to the government’s National Transformation Fund or spend a minimum of $220,000 in a government-approved real estate venture to be eligible for Grenadian citizenship. A passport is issued to the applicant(s) three to six months after the investment or contribution is made.

Only one candidate will benefit from the $150,000 grant. Any investment in a government-approved real estate property, on the other hand, can provide passports for their spouse, dependent children up to the age of 30, dependent parents and grandparents over the age of 65, and even dependent siblings over the age of 18. In the event of a real estate investment, the property must be kept for at least five years from the time of acquisition.

Investing in real estate to become a citizen is a fantastic method to recuperate the bulk of your initial investment, and it’s a terrific choice for bigger families because the initial property investment is the same.

Individual Income Tax

It’s vital to understand the difference between a Tax Resident and a Non-Tax Resident before diving into the tax rates. Anyone who spends more than 183 days per year in Grenada and generates local money is liable to Grenada’s income tax. This Eastern Caribbean country features a personal tax structure that benefits all citizens, regardless of residence status, in comparison to most other countries. Personal income up to XCD 24,000 is taxed at a rate of 10% in Grenada. Any amount in excess of this is subject to a 30% tax. Non-residents, on the other hand, are subject to a fixed 15% tax rate on income earned in Grenada. Finally, neither personal foreign income nor capital gains are taxed.

Taxation of Corporations

Companies in the nation, like people, must determine whether or not tax residency is required. If a firm is formed or does a considerable amount of business or financial activities in Grenada, it is subject to corporate taxes. The net profit before tax for Grenadian businesses is taxed at a fixed rate of 30 percent. Unlike the United States, the government of Grenada considers any product or service exported from the island to be local revenue. As a result, firms with global income are taxed at the same rate of 30%. Corporations formed under the International Companies Act, on the other hand, are fully free from corporate tax when conducting business outside of the Island’s jurisdiction.

Payments of VAT

The island’s Value Added Tax (VAT) operates similarly to that of the rest of the globe. This tax is levied on products and services in the Caribbean nation, and it is paid by customers. In Grenada, the normal VAT rate on most products and services is 15%. The tourist industry is subject to a 10% VAT levy. There are also some items and services that are exempt from VAT.

Property tax

Property taxes are based on the market value of the property and the land use classification. Property or real estate is assessed based on variables such as the kind of land, location, local pricing, development potential, land size, and building condition, according to the Inland Revenue Division (where applicable). There is no tax imposed on agricultural land. Property taxes range from 0% to 0.5 percent, depending on the type of real estate possessed, the type of land, and the valuation.

Grenada’s other taxes

There are a few taxes worth mentioning:

  • Property Transfer Tax: For the transfer of real property, property transfer taxes range from 5% to 15%. A transfer tax is imposed when land or property is sold, exchanged, or gifted in an amicable manner, according to the Inland Revenue Division.
  • Interest and Dividends: Non-tax residents in Grenada pay a flat 15% tax on any interest or dividends they receive.
  • Inheritance tax, wealth tax, and capital gains tax all have a zero percent tax rate.

Tax reporting principles

The Inland Revenue Division is the government agency in charge of all tax issues in the country. They are also in charge of developing legal strategies and enforcing all tax regulations. On their website, the process of filing and paying taxes is simplified and simple. While it is feasible for individuals to file their own returns, most people choose to engage a competent accountant or accounting company to handle the technical complexities of tax reporting in the nation.

Grenada’s passport has a number of benefits

A Grenadian passport provides numerous advantages, including visa-free or visa-on-arrival travel to over 140 countries, dual citizenship, and E-2 investment visa eligibility in the United States. Grenada’s residents have access to the country’s tax-friendly regulations, thus it’s no wonder that a number of affluent individuals have chosen Grenada citizenship above citizenship in any other Caribbean island for both migration and tax benefits.

The Procedure for Obtaining a Passport for Grenada

Grenada citizenship by investment is a simple procedure that appeals to investors seeking a second passport. The first step is to find an approved marketing agent who will start the application process and fill out all of the required paperwork. The government will examine the application and undertake background checks after it is filed. The background check involves examining the client’s source of finances and confirming that he or she has no criminal history or pending legal cases. This decision may take up to 6 months, following which the applicant may make the investment or make the gift and obtain their passport. Once granted, the applicant has visa-free travel to over 143 countries and the option to live and work as a resident or non-resident.

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