How to buy on Grenada
Generally the cost of purchasing a property on Grenada will come out at 8% on top of the purchase price. This will cover the Alien Landholding Licence, stamp duty, and legal fees associated with Conveyance and Government costs. If you are taking out a mortgage, lenders tend to charge a set-up fee.
Alien Landholding Licence
Foreigners must apply for an Alien Landholding Licence which costs EC$1,800 plus 10% of the purchase price. Along with your completed application you will need to provide your local lawyer (who will make the application on your behalf) with the following information:
Original plans of the property/land
Certificate of character (From your local police station)
Character reference (Two are needed)
There is no standard procedure on this, but common practice is to offer 10% of the purchase price as a deposit, which is forfeited if the buyer pulls out. In some cases if the vendor pulls out then the buyers 10% is returned as well as 10% from the vendor. In the unlikely event that the Alien's Landholding License is not granted, then the deposit is refunded.
1% of purchase price
5% of legal fees go to the Government of Grenada for General Consumption Tax (however, this is something your lawyer pays)
Property Transfer Tax
10% for non citizens of the purchase price of the property land or shares in a company valued in excess of EC$20,000.
15% for non citizens
5% for Grenadian citizens
There is no capital gains tax, inheritance tax or gift tax in Grenada.
Local solicitors usually charge 2% of the purchase price.
Local mortgages are available (subject to status) up to 100% of the property value with maximum term of 25 years but both the LTV (loan to value) and the term vary of course according to a number of factors. Interest rates are generally between 7-8%. There is no minimum you can borrow, but you will always need to prove that you have the funds available to finance a mortgage independently from rental income (if you are planning to rent your Grenada property). We are happy to provide reliable local contacts for financial advice and mortgages.
As with most Caribbean islands, the government on Grenada has approved a range of tax incentives to make it attractive for returning nationals to set up home on their native island (see below). Grenadians must apply to the Returning Nationals Facilitation Bureau at the Ministry of Finance with their passport, original ticket used to return to Grenada, a list of items they wish to include in their tax breaks and specification of any vehicle to be imported or bought on island.
1. Exemption for all household and personal items with a value of up to EC$75,000
2. Exemption on a vehicle for three years, whether said vehicle is imported or purchased locally
3. If said vehicle is sold within those three years the duties and taxes will be payable on the unexpired term
4. ED$2000 Environmental levy on said vehicle
5. 5% custom charge on all imports noted in this programme
We will help you to find a property manager once you have selected the property you wish to purchase.
Banking is easy on Grenada with a broad range of currencies available to convert to either EC or US dollars on island. You can use most credit or debit cards to get cash from the ATM's. However, with exchange rates and consumer confidence in constant flux it is a good idea to use currency exchange specialists to arrange the transfer of funds to your local bank account or lawyer. In any event, you will always get a better rate of exchange from a specialist company and there will be no banking charges for the money transfers.
When you purchase your property in Grenada you will need to transfer money abroad. The common currency quoted for Caribbean property is the US Dollar. If you are buying foreign currency, it is certainly worth considering different options for the exchange because your bank will rarely offer the best rates and service when it comes to large currency transactions.
For the past ten years we have recommended a couple of highly reputable currency specialists who are able to offer commercial rates to private purchasers, subject to a minimum of £2000. If you would like our assistance to save your time and money, please give us a call on 00 44 (0)7949 615 628.
About Caribbean Property International
We at Caribbean Property International are Caribbean property specialists working in partnership with the most established and reliable Caribbean real estate agents around the islands. We have affiliate offices in Antigua, Barbados, Grenada, Nevis, Tobago and St Lucia.
This website shows only a sample selection of the property we have at our fingertips but our local knowledge and good relations with all the best agents enables us to source and match properties with the requirements of discerning foreign buyers and returning residents.
Our team has had over 35 years experience in the Caribbean and over 25 years experience dealing with Caribbean property sales and rentals. If you are looking for a Caribbean property investment come to us and we will help you to achieve your goals.
Our specialist areas in the Caribbean islands are -
If you do not see the property you are looking for on Caribbean Property International, please send us your criteria.
Thank you for visiting CaribbeanProperty.co.uk