Everything You Need To Know About Buying Property In Grenada
Beautiful Grenada, known as “The Spice Island” has a booming tourist industry and a healthy property market making it a secure and attractive proposition for investment in real estate. There is a wide selection of reasonably priced government approved projects including resorts, hotels and villas. Property in Grenada is widely considered a good investment with projected high returns due to an economy that is stable and safe. Various tax exemptions exist, further enhancing the island’s popularity.
Where Should You Buy?
With a thriving tourist and real estate market, property is available throughout Grenada and the island has several locations that are regarded as particularly good places to make investments. Some of the best are the capital city of St George’s, the neighbouring island of Carriacou, plus the areas of Grande Anse and Lance Aux Epines.
There is a wide range of property available for sale in Grenada, ranging from simple apartments, comfortable villas, shares in resorts, to grand luxurious beachside villas and old colonial mansions. Prices vary from a very affordable US$160,000 up to around US$7,000,000
A number of requirements apply on the purchase of property as part of a Citizenship by Investment application.:
- The real estate must have a minimum value of US$220,000 for a joint investor or US$350,000 for a sole investor
- The property must be approved by the Citizenship by Investment program and be in the Tourism Accommodation sector
- The property must be retained for five years from the date of receiving citizenship, after which time it may be sold without affecting citizenship status
- As a security measure, funds invested as part of the application process are held in Escrow and released after approval of the citizenship application has been granted
- A number of project management services exist, helping to streamline the rental process and create additional revenues
Property Purchase Process
For non-nationals the purchase process is relatively simple, following a number of steps:
- Search for a property
- An offer is made once a suitable property has been found
- The seller’s lawyer writes a sales agreement
- The buyer pays a deposit of 10% which is held in Escrow
- The buyer’s lawyer finalises the paperwork for the property transfer
- The final payment is made for the property
- All required taxes and fees are paid
Property Tax, Charges And Fees
There are a number of charges that apply on property purchase in Grenada in addition to the price of the property itself.
- Alien Landholding Licence (ALHL): This is a requirement for any foreign purchasers of real estate on the islands if they are not purchasing as part of a Citizenship by Investment program, and is charged at 10% of the value of the property
- Legal Fees: Usually between 1% and 2% of the property price
- Stamp Duty: Charged at 1%
- Property Transfer Tax: This is usually 10%
- Annual Property Tax
- Sometimes there are Home Owners Association fees
- Commission Fees: These will be payable if the purchaser engages a real estate agent, accountant, attorney or any other professional to assist them through the purchase, and will usually be around 5% to 7% of the purchase price
- If the property is to be leased out, the use of a real estate agent management company is recommended. They will normally charge around 10% to 20% of the rental income and will be best placed to deal with all aspects of the maintenance and rental of the property
It is always important for potential purchasers to be aware of any possible difficulties or issues that may arise.
Some potential issues might be:
- Length of time of the buying process: Some of the stages may require more time than others and the process can take six months or more. A good real estate agent and lawyer can keep the purchaser informed of a realistic timeframe.
- Properties in Grenada are not always standard in style or construction. Additionally, the terrain of the land can vary greatly within relatively small distances, so the right property can sometimes take a while to find.
- Grenada’s Physical Planning Department and local covenants and local residents’ associations can sometimes place restrictions on buying or altering individual properties in particular areas.
Becoming A Citizen
Applicants for the Citizenship by Investment program may choose one of the following options:
- Purchase of Real Estate with a minimum value of US$220,000
- Non-refundable Contribution of at least US$150,000 62 to the government’s National Transformation Fund
- Applicants must be at least 18 years of age
- They must not have any criminal convictions
- They must demonstrate that they are able to meet the minimum investment requirements
There are numerous benefits to becoming a citizen of Grenada including:
- The right to live, work and study on the island
- Good lifestyle with political and social stability
- One of the most affordable Citizenship by Investment programmes, with investment starting at US$150,000
- Beneficial business environment
- Booming tourist industry with reasonably priced property available
- Various tax exemptions available including: No income tax, no inheritance, capital gains or wealth taxes on income derived from outside or within Grenada
- Family can be part of the application, including: spouse, children, parents, grandparents and unmarried siblings
- The citizenship is transferable to descendants
- Grenada is well-connected to the USA and the rest of the world, with direct flights easily available
- Visa-free access to 144 countries worldwide, including the UK and Europe
- Speedy application process – four to eight months
- No physical residency required and the option to obtain the Grenada passport remotely
- Dual citizenship permitted, with no need to relinquish original citizenship
- The only Caribbean country offering the fast relocation route to the USA through the USA E-2 Non-Immigrant Investment Visa
Grenada offers significant tax advantages and exemptions, with no income tax payable and no capital gains tax, inheritance tax or wealth tax on worldwide income or assets in Grenada
Grenada, with its stunning natural beauty, safe and stable environment, high quality of life and beneficial tax arrangements offers a beautiful location and sound financial option for business and property investment, making it a very attractive destination for those looking to purchase real estate and/or apply for Citizenship by Investment.
Astons have an extensive and varied portfolio of real estate in the Grenada, elsewhere in the Caribbean and around the world. Contact us here for a free and friendly, no obligation consultation with a member of our highly experienced and knowledgeable international team, who are ideally placed to provide you with accurate, up-to-date advice on all aspects of property investment and Residency and Citizenship by Investment in the Caribbean and worldwide.