Jurisdiction overviewTax in Grenada
Last reviewed: · by TaxProsRated editorial
Key points
Grenada's Inland Revenue Division (IRD) administers a progressive personal income tax at 10%, 28%, and 30% across three bands. Corporate income tax is 30% flat. VAT is 15%. Grenada operates one of the Caribbean's longest-running Citizenship-by-Investment programmes (since 2013), is the world's second-largest nutmeg producer, and participates in the ECCB's DCash CBDC pilot. Around 5 active tax treaties including the CARICOM multilateral convention and a bilateral with the UK.
Who is the tax authority?
The Inland Revenue Division (IRD) runs Grenada's tax system. IRD sits under the Ministry of Finance, Planning, Economic Development and Cooperatives. The legal foundation rests on the Income Tax Act Cap 149, the VAT Act 2009, and the Citizenship by Investment Act 2013.
Grenada belongs to several regional bodies. CARICOM membership unlocks the CARICOM Multilateral Tax Convention. OECS and ECCU membership align Grenada with the Eastern Caribbean Currency Union. CARIFORUM and AfCFTA-observer status round out the regional posture.
Grenada is an independent Commonwealth realm. It gained full independence in 1974. Constitutional governance was restored in 1983 after the US-led intervention that ended the People's Revolutionary Government period.
What is the tax year and when are returns due?
Grenada's tax year is the calendar year (1 January to 31 December). PAYE is withheld monthly from employee wages. Personal returns are due 31 March for the prior year. Corporate annual returns are also due 31 March. VAT-registered businesses file monthly returns. Provisional CIT is paid through quarterly installments.
Who counts as a Grenadian tax resident?
Under the Income Tax Act Cap 149, a person is tax resident in Grenada if ordinarily resident there, or if physically present 183 or more days in the tax year. Residents are taxed on Grenada-source income under a predominantly territorial framework.
Non-residents pay tax only on Grenada-source income. The two tests apply independently — either one triggers residency.
The Citizenship-by-Investment programme grants citizenship, not automatic tax residency. A CBI passport holder who does not spend substantive time in Grenada does not become a Grenadian tax resident solely by holding the passport.
Deep-dive: see expat and cross-border tax in Grenada for the CBI-residency distinction in practice.
What are the personal income tax rates?
Grenada uses three progressive income tax brackets. Rates rise from 10% at the bottom to 30% at the top.
| Yearly income (XCD) | Tax rate |
|---|---|
| Lower band | 10% |
| Middle band | 28% |
| Upper band (approx. XCD 60,000+) | 30% |
A personal allowance applies before the first bracket. National Insurance Scheme (NIS) contributions are 5% for employees and 6% for employers.
Deep-dive: see self-employed tax in Grenada for how NIS and income tax stack for freelancers and small business owners.
How does corporate tax work?
Grenada's corporate income tax (CIT) is a flat 30% for resident companies. The rate applies to net taxable profits after allowable deductions.
Flat rate for resident companies. Covers most businesses — retail, professional services, tourism, construction, agriculture, and nutmeg processing.
Withholding on dividends paid to non-residents. Treaty-resident shareholders may qualify for a reduced rate where the applicable DTA provides one.
Withholding tax on dividends paid to non-residents is 15%. Tax losses carry forward for 3 years. Grenada has not transposed the OECD Pillar Two global minimum tax. Post-2018 Economic Substance requirements apply under the EU Code of Conduct compliance framework.
Deep-dive: see small business tax in Grenada for the sole-trader versus incorporated comparison.
What about VAT and other indirect taxes?
Grenada's VAT is governed by the VAT Act 2009. The standard rate is 15%.
| Rate | Applies to |
|---|---|
| 15% | Standard rate — most goods and services |
| 10% | Hotel accommodation and tourism services |
| 0% | Exports (zero-rated, not exempt) |
VAT-registered businesses file monthly returns. Registration is mandatory once annual turnover crosses the threshold set by the IRD. Stamp duty applies on property transfers. There is no capital gains tax, estate duty, or inheritance tax in Grenada.
Deep-dive: see VAT and indirect taxes in Grenada for the full VAT mechanics.
How are cryptoassets taxed?
Grenada has no dedicated cryptoasset tax legislation. The Eastern Caribbean Central Bank (ECCB) has issued advisories cautioning about decentralised cryptoassets. Where declared, gains fall under existing income tax categories.
DCash: Grenada's participation in the ECCB digital dollar
Grenada participates in DCash, the Eastern Caribbean Central Bank's digital currency pilot. DCash is digital XCD issued within the ECCU framework — it is legally equivalent to Eastern Caribbean Dollar banknotes, not a decentralised cryptoasset. No specific income-tax framework has been enacted for DCash transactions.
Deep-dive: see crypto and digital assets in Grenada for the ECCB framework and current IRD position.
Citizenship-by-Investment (CBI) programme
Grenada has operated a Citizenship-by-Investment programme since 2013 under the Citizenship by Investment Act. It is one of five ECCU countries offering CBI, and the only Caribbean CBI programme with a direct US E-2 treaty investor visa pathway.
The CBI programme offers two main routes: a donation to the National Transformation Fund (minimum USD 150,000 for a single applicant) and a real-estate investment route (minimum USD 220,000 in an approved project). Both routes grant citizenship, not automatic tax residency. A Grenadian passport grants visa-free or visa-on-arrival access to approximately 140 countries including the EU Schengen zone and the UK. The US E-2 treaty investor visa route is a unique Grenada-specific benefit not available through most other Caribbean CBI programmes.
CBI citizenship does not create Grenadian tax residency by itself. Physical-presence and ordinary-residence tests apply separately under the Income Tax Act. Investors who acquire citizenship but do not live in Grenada remain taxable in their home country on worldwide income.
Deep-dive: see CBI tax residency in Grenada for the interaction between CBI status and IRD obligations.
Nutmeg economy and sector tax context
Grenada is the world's second-largest nutmeg producer after Indonesia. The island supplies roughly 20% of global nutmeg and mace. This concentration shapes both the economic base and the tax environment.
Nutmeg and mace exports from Grenada are zero-rated for VAT as exported goods. The Grenada Cooperative Nutmeg Association (GCNA) has historically been the central purchasing and export body. Businesses engaged in nutmeg processing, mace separation, and spice export should confirm their VAT and CIT treatment with an IRD-registered practitioner, as specific exemptions and incentive categories may apply.
Tourism is the other dominant economic pillar. Hotel accommodation uses a reduced 10% VAT rate. Tourism-sector businesses should track this reduced rate carefully alongside standard-rated sales.
Deep-dive: see agriculture and export tax in Grenada for nutmeg-sector and export-incentive details.
What is the treaty network?
Grenada has approximately 5 active bilateral tax treaties. The network includes the CARICOM Multilateral Tax Convention and a bilateral agreement with the UK, plus a few additional bilaterals. There is no comprehensive double tax agreement between Grenada and the United States.
Grenada has signed the OECD Multilateral Instrument (MLI) but ratification status should be verified with the IRD. The CARICOM Multilateral Tax Convention provides regional coverage among Caribbean members. The standard audit statute of limitations is 6 years. Fraud cases attract extended periods.
Deep-dive: see tax treaty relief in Grenada for the bilateral rate schedules.
Where does Grenada sit in the Caribbean cohort?
Grenada anchors the Caribbean CBI cohort (Type A) alongside Antigua and Barbuda, St Kitts and Nevis, Saint Lucia, and Dominica. All five operate Citizenship-by-Investment programmes within the Eastern Caribbean Currency Union.
The XCD has been pegged to the USD at 2.70 since 1976 under the Eastern Caribbean Currency Union. The ECCB manages monetary policy for all 8 member territories. There is no foreign-exchange risk between XCD and USD for businesses operating in both. All Grenadian tax obligations are denominated and payable in XCD.
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All 8 ECCU members share the XCD, the ECCB central bank, and monetary policy. Each member retains its own fiscal authority — income tax rates, VAT rates, and CBI rules differ per territory. The currency union removes exchange-rate risk for intra-ECCU transactions.
Common penalties and pitfalls
Foreign companies and individuals commonly encounter the following traps in Grenada:
Holding a Grenadian CBI passport does not make the holder a Grenadian tax resident. Residency requires physical presence (183+ days) or ordinary residence. Many CBI investors never become residents, and their home-country obligations continue unchanged.
There is no double tax agreement between Grenada and the United States. US workers and investors face full withholding on dividends, interest, and royalties without treaty-rate reduction. US persons are taxed on worldwide income by the IRS regardless of where they live.
All Grenadian taxes are denominated in XCD. The 2.70 fixed peg removes FX risk for USD-denominated businesses, but reported income, allowances, and thresholds are all XCD figures. Multi-territory ECCU businesses must file separately per territory.
Grenada is an independent state and a Commonwealth realm. UK legislation does not automatically apply — Grenada has its own Acts. The common-law legal tradition shapes contract interpretation, trust law, and penalty enforcement in ways that differ from civil-law jurisdictions.
Spice-sector businesses need to confirm their VAT category. Exported nutmeg and mace are zero-rated, but domestic processing, local sales, and co-operative payments may attract different rates or withholding obligations. The GCNA's role in export pooling adds a layer of classification complexity.
Grenada's 3-year loss carry-forward window is shorter than many Caribbean peers. Businesses with early-stage losses or project-based income must track expiry dates carefully. Losses not utilised within 3 years are permanently forfeited.
Grenada participates in the ECCB's DCash CBDC pilot. No specific income-tax or VAT framework has been enacted for DCash transactions. Until the IRD issues formal guidance, practitioners treat DCash as digital XCD — same tax treatment as conventional electronic payments.
International Business Companies formed before 2019 must satisfy Economic Substance requirements under EU Code of Conduct compliance reforms. A shell IBC with no genuine Grenadian activity risks both domestic penalty and EU blacklist exposure. Annual substance declarations are required.
When should you talk to a Grenadian Tax-Adviser?
Some situations in Grenada are straightforward. Others warrant professional input:
- Your income crosses the top 30% PIT bracket or you have income from multiple sources
- You are applying for CBI citizenship and want to understand whether Grenadian tax residency will apply to you
- Your company is structured as an International Business Company and Economic Substance rules may apply
- You operate in the nutmeg, mace, tourism, or export sector and need to confirm your VAT category
- Your company pays dividends to non-resident shareholders and no comprehensive DTA covers the recipient country
- You have received an IRD assessment notice, audit query, or penalty letter
- You are a US person considering Grenada and need to understand the lack of a US-GD DTA
- You are moving in or out of Grenada mid-year and need to determine residency status
You can find vetted Grenada practitioners through the directory below.
This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the IRD website or with a licensed Grenadian practitioner before filing.
Frequently asked
Who is the Grenadian tax authority?
Inland Revenue Division (IRD), under the Ministry of Finance, Planning, Economic Development and Cooperatives. Legal foundation: Income Tax Act Cap 149, VAT Act 2009, Citizenship by Investment Act 2013.
When is the Grenadian annual return due?
PAYE withheld monthly. Personal returns due 31 March. Corporate returns due 31 March. VAT monthly. Provisional CIT quarterly installments.
Who is a Grenadian tax resident?
Tax residents are ordinarily resident in Grenada OR physically present 183+ days in the tax year. Predominantly territorial framework. A CBI passport does not automatically confer tax residency.
What are the Grenadian personal income tax rates?
Three progressive brackets: 10% (lower band), 28% (middle band), 30% (upper band, approximately XCD 60,000+). A personal allowance applies before the first bracket. NIS is 5% employee plus 6% employer.
How does Grenada's corporate tax work?
CIT is 30% flat for resident companies. Non-resident dividend withholding is 15%. Tax losses carry forward 3 years. Pillar Two not transposed. Post-2018 Economic Substance requirements apply under EU Code of Conduct compliance.
What is the Grenadian VAT rate?
VAT is 15% standard rate under the VAT Act 2009. Hotel accommodation and tourism services use a reduced 10% rate. Exports are zero-rated. No capital gains tax, estate duty, or inheritance tax.
How does Grenada tax cryptoassets?
No dedicated crypto legislation exists. ECCB advisories caution about decentralised cryptoassets. Where gains are declared, they fall under existing income tax categories. Grenada participates in the ECCB's DCash CBDC pilot — no specific tax framework for DCash has been enacted.
How many tax treaties does Grenada have?
Approximately 5 active tax treaties including the CARICOM Multilateral Tax Convention and a bilateral with the UK. No comprehensive double tax agreement with the United States. MLI signed. Standard audit SOL is 6 years.
What is Grenada's Citizenship-by-Investment programme?
Established under the Citizenship by Investment Act 2013. Donation route minimum USD 150,000 for a single applicant. Real-estate route minimum USD 220,000 in an approved project. Grants approximately 140+ visa-free countries. Grenada is the only ECCU CBI jurisdiction with a US E-2 treaty investor visa pathway. CBI citizenship does not automatically confer tax residency.
Why is Grenada known as the Spice Isle?
Grenada is the world's second-largest producer of nutmeg after Indonesia, supplying roughly 20% of global output. Mace — the outer covering of the nutmeg seed — is also a major export. The nutmeg and mace sector is a distinct economic pillar alongside tourism. Nutmeg exports are zero-rated for VAT as exported goods.
Major tax firms in Grenada
Verified directory of the largest accounting + tax practices operating in Grenada. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Regional
Pannell Kerr Forster Grenada
- Regional
PKF Grenada
Find a tax pro in Grenada
Browse credentialed pros serving Grenada — filter by specialty, language, and credential type.
Browse the Grenada directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- IRD (Grenada) · accessed
- Government of Grenada · accessed
- Government of Grenada · accessed
- Ministry of Finance (Grenada) · accessed
- PwC Worldwide Tax Summaries · accessed
- Government of Grenada · accessed
- ECCU/ECCB · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Grenada as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.