EXCLUSIVE HOT PROPERTIES – GRENADA

From our international offices and our local partners on the ground in Grenada we help international clients with the following services.

Buying the Best Property in the Grenada

Very simply we offer our International clients the best of both worlds in that we have proven experienced local knowledge on the ground as well as international expertise from having made many different transactions throughout the world. This will allow you to buy safely and securely in Grenada

 

Setting Up a Business in the Grenada

Very simply our professional directors can help you with the set up your company structures in the most tax efficient manner possible. We only use the very best Lawyers, Accountants and professional advisors to make sure your company structure is 100% safe and secure and the very best you can have in Grenada

 

Asset Management

If you’re an investor and already own assets in Grenada or just acquiring them then our team of professionals can offer you the complete asset management services including property management and project management.

These are just a sample of the key services that First Grenada provides and should you need any further information do not hesitate to contact us directly.

Exclusive Hot Properties

Email:    grenada@exclusivehotproperties.com

Tel:         +44 20 7588 8355

Asia:      +63 977 829 1489

Why Invest in Grenada Property?

Last updated September 2018

Unless you’re a Citizens of Grenada then property buying costs make it difficult to make good sound investments. Buying and selling costs for foreigners are between 32% and 43% of property value, the highest in the Caribbean. The Alien Land Holding License costs 10% of property value. International buyers must also pay Property Transfer Tax, at 10%. In addition, non-national sellers also pay Property Transfer Tax at 15%, on top of the buyer’s payment. Grenada citizens selling property only pay 5% Transfer so if you’re a large investor it makes sense to become a citizen of Grenada before investing.

In 2015, total sales transactions in Grenada amounted to US$ 40.8 million, an increase of 71% on 2014’s transaction value of US$ 23.8 million, on average, there were 40 transactions per month in 2015, similar to the past 3 years – but the average transaction value has surged, increasing by 63% year on year to US$ 84,972 in 2015.

The recovery of Grenada’s market is thanks to the US and UK economic recoveries, as most international home buyers in Grenada come from these 2 countries. Although foreign buyers make up only 7% of transactions, their share in terms of value is significant.

The market’s rise was also helped by the Citizenship by Investment (CBI) Program, which allowed several luxury developments to acquire the necessary capital through fractional ownership or sales of company shares. The CBI Program was launched in 2013. In this program, investors who are applying for Grenadian citizenship have two options: The first being by Donation to the Government fund of 150,000 US Dollars plus 50,000 in Government Fees. The second by real estate investment at 350,000 US Dollars

The Grenadian economy expanded by around 4.6% in 2015, backed by the construction sector’s rebound, as well as by growth in agriculture and tourism, according to the International Monetary Fund (IMF). This followed much stronger expansion of 5.7% in 2014. Grenada gdp inflation in 2016, the economy is predicted to grow by 3%.

Grenada was once one of the Caribbean’s fastest developing economies. Its GDP grew by 7.2% p.a. 1997-2000. But GDP fell by an annual average of 0.7% annually from 2008 to 2013, due to the impact of the global economic and financial crisis. The economy only rebounded in 2014.

Grenada has a very high national debt, at around 100% of GDP.  Unemployment is very high at around 30%, with youth unemployment of over 50%. In 2013 the new government entered selective debt default and agreed restructuring with some creditors at 50c in the dollar.  It also entered into a three-year US$21.7 million Extended Credit Facility (ECF) arrangement with the IMF in June 2014.

Grenada’s fiscal performance has recently been strong, with a primary fiscal surplus of 2.2% of GDP in 2015. The country’s debt-to-GDP ratio declined from 107% in 2013 to 92.7% at end of 2015.

“The key priorities in 2016 include execution of the budget in line with program commitments and the new Fiscal Responsibility Act (FRA); focused reforms to ensure prudent and sustainable management of the public sector wage bill; application of the new system to register beneficiaries for social assistance; and follow through on growth-enhancing reforms in the areas of business facilitation and labor legislation,” according to the IMF.

Grenada’s currency is the East Caribbean dollar (XCD), which has been pegged to the US dollar at 2.7CD since 2001.

To summarize Grenada is primarily a lifestyle choice rather than a property investment choice and whilst there is room to make amazing returns for the big investors concentrating on luxury, travel and Citizenship by Investment programs there are better places in the world for medium size investors to invest and make better returns.

The Buying Process in Grenada

Foreigners can purchase property provided they acquire an Alien Land Holding License before the purchase. The license is currently 10% of the selling price. A notary public handles the paperwork. A police clearance from your place of residence and bank reference is necessary to process your application. This can take up to three months to process.

After a license is secured the conveyance process may proceed. A survey is not compulsory but advised. When the conveyance is satisfactorily completed, the buyer will have to accomplish the payments. The lawyer will then register the transfer and pay government duties (stamp duty and sales tax on property transfers).

Foreigners can purchase property provided they acquire an Alien Land Holding License before the purchase. The license is currently 10% of the selling price. A notary public handles the paperwork. A police clearance from your place of residence and bank reference is necessary to process your application. This can take up to three months to process.

After a license is secured the conveyance process may proceed. A survey is not compulsory but advised. When the conveyance is satisfactorily completed, the buyer will have to accomplish the payments. The lawyer will then register the transfer and pay government duties (stamp duty and sales tax on property transfers).

Buying and Selling Costs

The Alien Land Holding License costs 10% of property value. Foreign buyers must also pay Property Transfer Tax, at 10%. In addition, non-national sellers also pay Property Transfer Tax at 15%, on top of the buyer’s payment. Grenada citizens selling property only pay 5% Transfer Tax. Generally, the total buying and selling taxes for foreigners is between 32% and 42% depending on the above variables

Conclusion

If you’re going to buy a luxury villa or property in Grenada, you should seriously consider obtaining Citizenship through Investment and becoming a citizen first especially if you purchase is likely to be over 1 Million Dollars.

Grenada  Location Guide

Grenada is a tropical island in the southern Caribbean. Grenada is made up of three islands, the mainland Grenada and sister islands Carriacou and Petite Martinique. Grenada is also called the ‘Spice Isle’ or ‘the spice of the Caribbean’ because it was once the world’s second largest producer of nutmeg and home to many nutmeg and sugar plantations. It has rich fertile soil with a hilly terrain.

Grenada has a unique compliment of white and black sand beaches, coral reefs and dive wrecks, waterfalls, lakes, rivers, hiking trails, forts, and sailing the turquoise waters of the Caribbean sea. It’s capital, St. George’s, has a number of colourful Georgian buildings that overlook the Carenage Harbour, one of the most beautiful harbours in the Caribbean.

As a destination, Grenada is one of the safest places in the Caribbean and the world and attracts visitors from the UK, Germany, US and Canada. The Maurice Bishop International Airport as direct international flights several days per week from New York, Miami, Canada, UK and accommodates flights from Frankfurt and Venezuela in the south.

Grenada is where untouched beauty meets our warm people and simple way of life.

Area: 134.6 Square miles  Geographic location: 12°03′N 61°45′W Weather: Grenada is a tropical island and enjoys good weather all year round. The island experiences two seasons. A dry season from February to end May and a wet season from June 1 to end January. The hurricane season for the Caribbean is June 1 to November each year. Grenada falls outside of the hurricane belt and is a safe haven for mooring of yachts.   City: St. George’s  Languages: English (Main), Creole English and Creole French  Population: 110,000 and comprises of African, mixed, Indian, Caucasian and other ethnic groups.  Currency: Eastern Caribbean Dollar (XCD) which is pegged to the United States Dollar at $2.7169