Grenada Island Taxes

1. Taxes, Fees & Costs of Ownership

Grenada's property acquisition cost structure is similar in framework to other Eastern Caribbean Commonwealth jurisdictions — stamp duty at acquisition, potential alien landholding licence fee for open market purchases, and legal fees. The CBI route adds government programme fees. Annual holding costs include property tax, insurance, and (for managed properties) maintenance and management fees.

A. Acquisition Costs — Open Market Transactions

Stamp Duty

Stamp duty on property transfers in Grenada is levied at a combined rate that is split between buyer and seller. The standard structure is: buyer pays stamp duty of 1% of the purchase price, and the seller pays stamp duty of 5% of the purchase price — giving a combined total of 6%. Some sources describe the buyer's share as including registration and related costs that bring the buyer's total acquisition stamp-related cost to approximately 3%–5% when all charges are included. Your attorney will confirm the precise current rates applicable to your transaction — stamp duty rates and structures can be adjusted by legislation and your attorney's current knowledge is essential.

Alien Landholding Licence Fee

For open market purchases by foreign buyers, the Alien Landholding Licence fee is a government charge calculated as a percentage of the property value. This is a material acquisition cost and must be factored into your total budget from the outset. Confirm the current applicable rate with your Grenadian attorney before making any offer — this fee, combined with stamp duty and legal fees, determines the total acquisition cost premium over the purchase price.

Legal Fees

Grenadian conveyancing attorney fees are typically charged as a percentage of the purchase price, generally in the range of 1%–2% for a standard residential transaction, with variations for complex transactions, CBI-related work, or corporate structure involvement. Obtain a clear, itemised fee estimate at the outset of the engagement.

Total Acquisition Cost Estimate — Open Market

For open market purchases by foreign buyers in Grenada, total acquisition costs — including buyer's stamp duty, alien landholding licence fee, legal fees, and registration charges — typically amount to approximately 8%–13% of the purchase price. The alien landholding licence fee is the primary variable; confirm the precise amount applicable to your transaction with your attorney before finalising your budget.

B. CBI Real Estate — Government Programme Fees

In addition to the qualifying property investment (minimum US$220,000), CBI applicants pay government fees to the Grenada CBIU. These fees include due diligence fees per applicant and processing fees, and vary by family composition. The government publishes the applicable fee schedule through the CBIU and authorised agents — obtain the current confirmed schedule before proceeding. For illustrative planning purposes, total government fees for a single applicant are typically in the range of US$15,000–US$25,000 in addition to the property investment; for a family of four, these fees increase substantially due to per-dependent charges. Always obtain a precise, current, and itemised cost schedule from your authorised agent.

C. Annual Ownership Costs

Property Tax

Grenada levies an annual property tax based on the assessed value of the land. Rates vary by property classification and assessed value and are generally modest by international standards. Verify the current assessment and annual property tax for any specific property with your attorney or a local tax adviser, and confirm that all property taxes are current before completing any purchase.

No Capital Gains Tax, No Inheritance Tax

Grenada levies no capital gains tax on property sales and no inheritance tax on Grenadian real estate. All appreciation in property value accrues to the owner without local deduction, and property can pass between generations without a Grenadian inheritance tax charge. These absences are meaningful long-term financial advantages for investors and estate-planning-conscious buyers.

Insurance

Hurricane insurance is essential — the island's position in the Eastern Caribbean hurricane belt, combined with the memory of Hurricane Ivan's 2004 impact on Grenada (which was severe, causing widespread damage across the island), makes comprehensive windstorm cover non-negotiable. For properties within managed resort developments, building insurance may be included in maintenance fees — confirm this precisely and understand what you are responsible for independently. For standalone properties, budget windstorm, buildings, contents, and rental liability cover as a significant annual cost.

HOA and Management Fees

For properties within gated communities, resort developments, and CBI-approved development projects with rental pool arrangements, annual HOA or management fees are a significant cost. These fees cover community maintenance, security, pool and grounds, and (in managed rental pool properties) the resort management overhead. Obtain and review the complete current fee schedule for any managed property before purchase and factor it into your rental yield calculations.