Construction companies will be required to report regularly to the Citizenship Programme Department on their investments. The Department has already hired engineers and accountants who will visit the sites in person and check the companies' financial statements.
The Prime Minister of Grenada Keith Mitchell explained that the measures would increase the financial transparency of the programme. They will also help prevent waste and misuse of investors' money.
The Programme Department will make an effort to ensure that there are no unfinished properties. If this happens, the investor loses the invested money. And if the property is successfully commissioned, the investor can earn on the lease and fully recover the investment upon sale.
The Government of Grenada expects that state control will enhance the reputation of the programme among foreign investors.
Investment in real estate under Grenada programme
The investor and his family can obtain a Grenadian passport for real estate investments. The minimum amount is $220,000. It does not increase with the addition of the investor’s family members.
You can only invest in facilities that are approved by the government for participation in the citizenship programme. As a rule, these are 5-star hotels and tourist complexes. An investor can buy a share in such a hotel, apartment or villa.
In November 2020, investors can choose one of 17 construction projects.
Hotel Kimpton Kawana Bay stands out from the rest of the programme. In the first 6 months of 2020, 57% of investors who participate in the citizenship programme through real estate purchase have invested in the project.
To date, 74% of the hotel shares and apartments have been sold out. 312 transactions have been concluded or are under consideration and 512 investors have already received passports for their investments in Kimpton Kawana Bay. We talked about the statistics of the facility in the material "Grenada and Dominica: which 2 hotels were the best for participation in citizenship programmes for investment".
Why is it beneficial for investors to invest in Caribbean property?
Real estate is a liquid asset. Investors who participate in the Real Estate Option Programme receive passive income and the opportunity to return the money invested.
When construction is completed, the management company leases out the facilities and transfers the money to the investor's account. The profitability of real estate in Grenada is around 4% per annum.
The investor can sell the share or the apartment and fully return the investment after 5 years. It is not allowed to sell before: this is illegal and will lead to deprivation of citizenship and withdrawal of Grenada's passport. We talked about this in the material "Grenada Citizenship: Buying back a property before the end of 5 years is illegal".
The investor can rest for free in a hotel or resort complex in which he has a share or an apartment. As a rule, free vacation is provided up to 2 weeks per year.
Share of the premium hotel complex. Value of the share — 220 000 $
Villa with its own berth. Price — 2,5 million dollars
Share of the resort SPA complex. Value of the share — 220 000 $
Villa with its own beach. Price — 2,5 million dollars