Capital gains tax in Grenada

Does Grenada have a capital gains tax?

No. Grenada imposes no capital gains tax (CGT) on individuals or corporations. Gains from selling shares, bonds, land, or other capital assets are not subject to a separate CGT charge under Grenadian law. The Inland Revenue Division (IRD), which administers all major taxes in Grenada, does not list a capital gains tax among its administered levies. [^1]

This absence of CGT is a deliberate feature of the Grenadian tax framework, not an oversight. It applies to residents and non-residents alike on capital disposals. Where a disposal generates recurring business income rather than a one-off capital gain, the IRD may treat proceeds as ordinary income subject to income tax. If you are uncertain how a specific transaction is classified, consult a qualified tax professional licensed in Grenada.

How does Grenada differ from genuinely zero-tax islands?

Grenada is sometimes grouped with the Cayman Islands, the British Virgin Islands, or the Bahamas under the broad label of low-tax Caribbean jurisdictions. That comparison is imprecise. Grenada taxes income and corporate profits; it simply does not tax capital gains.

Grenada-resident individuals pay personal income tax on worldwide income at progressive rates: the first EC$36,000 of annual income is exempt; income from EC$36,001 to EC$60,000 is taxed at 10%; income above EC$60,000 is taxed at 28%. [^2] The tax year runs January 1 to December 31 and returns are due within 90 days of year-end.

Resident companies pay corporate income tax at a flat rate of 28% on net profits. Non-resident companies pay 28% on Grenada-sourced income only. [^3]

Tax residency is triggered by spending more than 183 days in Grenada in a calendar year, at which point an individual is taxed on worldwide income. Visitors and non-resident investors below that threshold pay Grenadian tax only on locally sourced income.

What taxes apply when selling property in Grenada?

Although there is no CGT, selling property in Grenada is not tax-free. Two charges apply on the vendor side.

Property Transfer Tax is imposed under Act No. 37 of 1998, administered by the IRD. [^1] The vendor rate depends on nationality:

• Grenadian nationals and OECS citizens selling property: 5% of the market value or agreed sale price.
• Non-nationals selling property: 15% of the consideration or market value.

The tax applies only to the value exceeding EC$20,000 on ordinary transfers, and only to the value exceeding EC$150,000 on transfers by deed of gift. Exempt categories include transfers to registered charities, mortgage-related transfers for property purchase or repair, and transfers between trustees of the same trust.

Non-national buyers must also obtain an Alien Landholding Licence, which costs 10% of the property value. Grenada Citizenship-by-Investment (CBI) programme participants are exempt from this licence requirement.

Stamp duty of approximately 1% of the purchase price is payable on property transactions. [^4]

Annual property tax is also levied each year on assessed market value, ranging from roughly 0.2% for residential land to 0.5% for commercial property; agricultural land is generally exempt. A 5% discount applies if annual property tax is settled by 30 June. [^5]

What is the VAT rate in Grenada?

Grenada's standard Value Added Tax (VAT) rate is 15%, applied to most goods and services. Reduced rates apply to the tourism and accommodation sector (10%) and to mobile and telecommunications operators (20%). Basic food staples, water, medicines, and exports are zero-rated. Businesses with annual taxable supplies of EC$300,000 or more are required to register for VAT. [^3]

How does Grenada's Citizenship-by-Investment programme interact with taxes?

Grenada operates a Citizenship-by-Investment (CBI) programme administered by the CBI Unit. Two main investment routes exist: a contribution to the National Transformation Fund (NTF), or a real estate investment in a project approved under the CBI programme (minimum USD 220,000, with a five-year hold requirement). [^6]

CBI status alone does not create tax residency, nor does it exempt an investor from Grenadian income tax if they subsequently spend more than 183 days in-country. However, CBI investors who purchase through an approved real estate project are exempt from the Alien Landholding Licence fee (10% of value), which represents a meaningful saving versus a standard foreign purchase. Foreign-sourced income, capital gains, wealth, and inheritance are not taxed by Grenada regardless of CBI status.

The programme makes Grenada attractive to internationally mobile investors, but the tax position of a CBI holder living in Grenada is not materially different from any other resident: personal income from Grenadian sources is subject to the 0%/10%/28% bands. Confirm your specific residency and income classification with a qualified tax professional before making investment decisions.

For a broader look at Grenadian tax professionals and the jurisdictional context, see the Grenada country overview.

Tax summary table

All figures are in East Caribbean Dollars (XCD / EC$) unless stated in US Dollars (USD). At the Eastern Caribbean Central Bank's fixed peg, USD 1.00 = XCD 2.70.

This page summarises publicly available information. It does not constitute tax guidance of any kind. Individuals and entities with Grenada-connected income or property disposals should engage a qualified tax professional with current knowledge of Grenadian law.