For comparison, the Programme Department issued 545 passports in the first half of 2019. This figure is comparable to the results for 2020. In addition, the Programme Department noted that it received around 100 applications in the first quarter of 2020 – 25% more than in the same period in 2019.
We explain in more detail why, with a similar number of applicants in 2019 and 2020, investors have brought less income to Grenada.
What revenue did Grenada's citizenship programme generate in 2020?
The Government of Grenada reports a drop in income from the programme despite the steady interest of foreign investors. In the first half of 2019, they brought the country EC$ 86 million or US$ 32 million.
In 2020 the figure fell by 76% to EC$ 20.8 million, or USD 7.7 million.
In our opinion, income has fallen because investors are less likely to invest in real estate.
Closed borders have affected the tourism sector, on which 60% of Caribbean countries’ GDP depends. As a result, real estate investment has become less in demand. Under the terms of Grenada citizenship programme, only approved tourism infrastructure projects, such as hotels, can be invested.
At the same time, the demand for the non-refundable option to contribute to the National Transformation Fund has increased. This option is advantageous if only the investor himself plans to participate in the programme. If, together with the investor, the citizenship for the investment is granted to his or her family members, the contribution amount will increase significantly.
For a family of 4 or more people, the option of buying a property may be preferable. In this case, the minimum investment amount is not increased when adding family members.
In addition, the funds can be returned if the property is sold after 5 years. Potential yield of real estate in Grenada is up to 4%.
Cost of participation in the Grenada Citizenship by Investment Program
|Option||Cost for 1 investor||Cost for a family of 4|
|Non-refundable contribution to the National Transformation Fund||150 000 $||200 000 $|
|Purchase of property with an option to sell in 5 years||220 000 $||220 000 $|
What has changed in the procedure for obtaining a passport in 2020?
The Government of Grenada has made 2 major changes to the procedure for obtaining citizenship for investment:
- Since March 2020, the Grenada Citizenship Programme Department has fully transitioned to online investor applications.
- During the pandemic, application processing begins as soon as scanned copies of documents are received by the department. Previously, the department would only process applications once it had received the originals of all documents.
The changes did not affect the processing time of applications: it is still between 4 and 6 months.
Today the Government of Grenada offers investors two investment options under the citizenship programme
- One-time non-repayable contribution to the National Transformation Fund. The minimum investment amount is $150,000.
- Purchase of real estate for the amount from 220 000 $. The investor chooses a property from a list approved by the government. The property must be in possession of at least 5 years. On the obligations under this option we described in the material “Citizenship of Grenada: Buying a property before the expiration of 5 years out of law”.
What advantages does Grenada citizenship bring to investors?
The Grenada Citizenship for Investment Programme has been in place since 2013. The passport of this island state gives the investor the following benefits:
- Visa-free entry to 143 countries including Schengen, UK, Hong Kong, Singapore and China.
- The opportunity to obtain an E-2 business visa to the USA, which allows you to live, work and do business in the country.
- An opportunity to optimise taxation for yourself and your business. Grenada has no taxes on world income, capital gains, gifts or inheritance.
- Access to international banking services to store savings and conduct foreign exchange transactions.
- Benefits for children’s education in the UK and other countries of the British Commonwealth of Nations.
Immigrant Invest is a licensed agent for the Grenada Citizenship Programme for investment and is the only company in the industry with an existing Compliance Division.
In some cases the Programme Department may reject an application for citizenship for investment. For example, the Government of Grenada has rejected 19 applications for the programme in 2020. In 2019, 16 investors were rejected.
This is why our lawyers conduct a due diligence review of the investor. This reduces the risk of rejection to 1%. We carefully analyse the situation of the investor and help at all stages of participation in the investment programme.
Immigrant Invest specialists take care of preparing the documents package and submitting the application to the programme department. All procedures can be performed remotely, so the investor does not need to spend time visiting Grenada. We receive a ready-made naturalisation certificate and passport which we then forward to the investor at a convenient address.