Grenada citizenship by investment program: options for participation
Real estate purchase is one of the options provided by the Grenada citizenship by investment program.
In total, the program offers two investment options. In addition to a real estate purchase, investors can contribute to the state fund.
The contribution is less than investment in real estate — $150,000 versus $220,000. However, the contribution is irrevocable, and real estate can be sold in five years and return the investment.
70% of investors prefer to buy Grenada real estate to return on their investment. Demand trend confirms the statistics from the Grenada Ministry of Finance, National Security, Home Affairs, Public Administration, Information and Disaster Management.
Grenada's program has been running since 2013, and the number of applicants is growing steadily. Over the past five years, from 2017 to 2021, their number has doubled from 296 to 566 applications per year.
Who can get Grenada real estate citizenship
Foreigners over 18 years of age who can fulfil the investment conditions, confirm the legality of their income and absence of criminal records and serious illnesses can become participants in the program.
Investors can include in the application:
- children under 30 years of age and parents, if the investor or their spouse fully provides for them financially;
- siblings who have reached the age of 18 and are not yet married.
The total cost of obtaining Grenada citizenship by investment depends on the number of family members and their age. In addition to the cost of housing, the investor pays Due Diligence, administrative, passport, and bank fees and pays for legal support.
Grenada real estate citizenship expenses
|Expenses||Investor||Spouses||Spouses and two children aged 7 and 18|
Grenada real estate for sale
A share in a hotel. Investors can buy Grenada real estate in share ownership for $220,000 and get citizenship. The property must be included in the list of real estate approved by the Grenada government.
In return, the investor receives a Grenada passport, passive income from rent and can rest in a hotel for one to two weeks a year.
Government-approved real estate in Grenada
Apartments and villas in Grenada are bought by investors who want to buy housing in full ownership. In this case, the costs will be from $350,000, which is an approximate apartment price.
Investors often rent out the property to students and tourists who come to Grenada all year-round. The highest demand is for apartments with one or two bedrooms. A management company usually services Grenada real estate, the service contract is concluded remotely. Renting real estate brings the owner 3—5% per annum.
Government-approved real estate in Grenada
Grenada real estate expenses are not only the cost of the object itself but also additional fees. These include fees for contract registration and legal support, and licences for the right to own land.
Investors who buy real estate under the citizenship investment program are exempt from the licence fee.
Grenada real estate purchase expenses
|Expenses||Comments||For investment program applicants||For foreigners|
|Real estate cost||Apartment in a residential complex||$350,000+||$350,000+|
|Contract fee||2% from the transaction value||$7,000+||$7,000+|
|Lawyer fee||1—2% from the transaction value||$3,500+||$3,500+|
|Licence fee||10% from the transaction value. Not applicable for participants of investment programs||$0||$35,000+|
Return on investment in real estate. Grenada real estate citizenship program investors can sell real estate on the island 5 years after obtaining citizenship. During this time, housing will rise in price — the annual increase in real estate prices ranges from 2 to 4%.
When selling real estate, the investor will need to pay a tax on the transfer of ownership: the rate for Grenada citizens is 5%. There is no capital gains tax in Grenada.
Grenada citizenship benefits
Visa-free travel. Investors with Grenada passports visit 146 countries, including the Schengen states, the UK, Singapore, China, and Hong Kong. Grenada citizenship allows visa-free entry to China — you can stay there up to 30 days a year.
Long-term visas to the USA. With Grenada citizenship, individuals can obtain an E-2 business visa to the United States, allowing them to live and work there. Investors will also be able to obtain a B-1/B-2 visa — a long-term tourist visa, which is issued for up to 10 years.
Tax optimisation. The Grenada government is interested in attracting foreign investors. Grenada tax residents do not pay taxes on worldwide income, dividends received in other countries, interest and royalties. There are no taxes on inheritance, capital gains and wages, as well as stamp duty. Property tax rate is 0.5%.
Remote process of obtaining citizenship. The investor will not need to come to Grenada before or after obtaining citizenship. Passport certificate of naturalisation sent by mail.
Returnable and reliable investments. To participate in the program, you must purchase a property approved by the state. The government of Grenada checks properties to protect investors from unscrupulous developers. The investor can return the invested funds 5 years after obtaining citizenship.
Grenada real estate citizenship procedure
Under the terms of the Grenada citizenship program, an investor cannot independently apply for participation, he must contact a licensed agent. The lawyers accompany the applicant at every stage of obtaining citizenship: from collecting documents to choosing a property and receiving passports.
The term for obtaining a Grenada passport is from 4 to 6 months.
How to get Grenada citizenship by investment in real estate
The investor’s documents are checked by a certified Anti Money Laundering Officer who knows all the nuances of Due Diligence. The expert is looking for facts in applicant’s personal or business background that may prevent him from obtaining Grenada citizenship.
Preliminary Due Diligence reduces the risk of being denied citizenship after verification to 1%.
The Immigrant Invest real estate database contains projects from trusted developers approved by the government for participation in the program. Our Grenada real estate lawyer will tell you about the features of each project.
When an investor chooses a property, lawyers check the legality of the transaction and prepare a property reservation agreement. After that, they collect the necessary documents for applying for participation in the program, fill out forms, and make translations and apostilles.
The investor pays for the reservation agreement —10% of the object value, pays the state duty and Due diligence fees.
Once the Grenada CBI Unit receives the documents, the Due diligence begins. It lasts from 3 to 6 months.
The CBU Unit informs Immigrant Invest of the approval of the application. When the notice is received, the investor pays for the property.
Documents are produced within four weeks from the date of transfer of the investment. Immigrant Invest sends a passport and a naturalisation certificate to an address convenient for the investor.
Frequently asked questions
To participate in the Grenada citizenship program, an investor can buy a share in a hotel, apartment or villa from a list of real estate approved by the government of Grenada. The minimum investment is $220,000.
Yes, investors who buy property in Grenada can receive passive income from 3 to 5% per annum. The owners agree with the management company, which leases the object.
An investor can sell real estate 5 years after obtaining citizenship. During this time, the property will increase in price by 15—20%. There is no capital gains tax in Grenada, which increases the return on investment in real estate.
The average cost per square meter of housing in Grenada is $1,900 if the object is located in the centre of small towns away from the ocean. Real estate in resorts, near beaches or national parks can cost several times more.
Besides, under the Grenada citizenship program, an investor cannot independently apply for participation, he must contact a licensed agent. This is a legal company that accompanies the applicant at every stage of obtaining citizenship — from collecting documents to choosing a property and receiving passports.
Yes, the citizenship program of Grenada provides one more option — a contribution to the National Transformation Fund. The minimum investment is $150,000.
The contribution to the state fund is non-refundable. This means that the investor will not be able to return the money or receive passive income.
The investor’s costs will increase if he includes family members in the application: the contribution for one investor is $150,000, and for an investor with a spouse — $200,000.
If there are more than four people in the application, for each additional person investor will have to pay:
- $25,000 for a child or parent over 55 years old;
- $50,000 for a parent under 55 years old;
- $75,000 for the brother or sister of the investor or their wife.