Starting a business in
🇬🇩Grenada
Checked November 9, 2026 · How we score
Corporate tax
28%
Top income tax
28%
Setup from
$1,500
all-in, first year
Time to form
7 days
can be done remotely
What is the corporate tax rate in Grenada?
The headline corporate tax rate in Grenada is 28% in 2026, and individuals pay up to 28%. 28% on net income, with no surtax. Approved enterprises in tourism and other priority sectors can claim tax holidays and duty-free imports.
| Corporate income tax | 28% 28% on net income, with no surtax. Approved enterprises in tourism and other priority sectors can claim tax holidays and duty-free imports. |
|---|---|
| Personal income tax (top) | 28% No tax on the first EC$36,000 of annual income, then progressive rates up to 28%. Grenada does not tax the foreign income of citizens who live abroad. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 0%No capital gains tax; property transfers carry stamp duty and a land-transfer tax of around 5%. |
| Dividend withholding (non-residents) | 15% |
| VAT / GST | 15% |
| Social security | VAT is 15% (10% for hotels, 20% on mobile telecom, 0% for essentials). National Insurance contributions are payable by employers and employees on local payroll. Property tax applies to land and buildings. |
Forming a company in Grenada
| Usual entity | Grenada company or International Business Company |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $1,200–$3,000 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Citizenship by investment starts at US$235,000 for a single applicant (National Transformation Fund contribution) or US$270,000 in approved real estate, plus government and due-diligence fees. This sits above the US$200,000 floor set for the five OECS programmes in July 2024. Grenada has an E-2 treaty with the US, so citizens can apply for E-2 investor visas. Check with the Investment Migration Agency for the latest thresholds.
| Digital nomad visa | Grenada Digital Nomad Residence |
|---|---|
| Golden visa | Yes, from $270k |
| Citizenship by investment | From $235k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Taxes for individuals living in Grenada
Grenada taxes income arising in Grenada, so foreign-source income of residents is generally outside the net. Dividends paid to residents are exempt from withholding.
| Foreign income of residents | Not taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%No inheritance, estate or gift tax. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you spend 183 days or more in Grenada in a calendar year or have a permanent home there. |
Special tax regimes
Citizenship by Investment (NTF)
Contribute at least US$235,000 to the National Transformation Fund (single applicant), or invest US$270,000 in approved real estate, for a Grenadian passport with E-2 eligibility. Fees extra.
US E-2 treaty investor angle
Grenada is a US E-2 treaty country, so citizens can apply for an E-2 visa to run or invest in a US business, subject to the usual substantial-investment and active-business tests.
Tourism and approved enterprise incentives
Qualifying investments can get income tax holidays and duty exemptions.
Pros and cons
Why founders pick Grenada
- E-2 treaty status offers a US investor visa route
- No capital gains, inheritance or wealth tax
- Passport with visa-free access to the UK, Schengen and China
- Established citizenship by investment programme
Watch out for
- Higher entry price than Dominica or St Lucia
- 28% corporate tax and 28% personal income tax above EC$36,000
- CBI programme is subject to ongoing regional reform and a pending 2026 amendment
- Banking for Grenadian entities is difficult
Best for: Non-US founders who want an E-2 investor visa route to the US · Families seeking a Commonwealth passport with strong education options · Remote workers interested in a Caribbean residence permit
Grenada: common questions
Is Grenada a tax haven?
Not usually, but it is a low-tax option for some founders: territorial taxation (foreign income is not taxed). Companies pay 28% corporate tax and the top personal income tax rate is 28%.
How much does Grenada citizenship by investment cost?
From US$235,000 for a single applicant via the National Transformation Fund, or US$270,000 in approved real estate. Government, due-diligence and processing fees are extra, and family applications cost more.
Can Grenada citizens apply for an E-2 visa?
Yes. Grenada has an E-2 treaty with the United States, so Grenadian citizens can apply for an E-2 investor visa to develop and direct a US business. They must still show a substantial investment and meet the active-business test.
What is the corporate tax rate in Grenada?
28% on net income, with no surtax. Tourism and other approved enterprises can receive tax holidays.
Does Grenada have income tax?
Yes, but with a generous allowance: the first EC$36,000 a year is untaxed and rates rise to 28% above that. Foreign income of residents is generally not taxed.
Is Grenada on the EU tax blacklist?
No. Grenada is not on the EU's Annex I list as of the 9 October 2026 update.
Sources
- Grenada Investment Migration Agency
- Grenada Inland Revenue Division
- Deloitte: International Tax Grenada Highlights 2026
- US State Department: Treaty countries for E-1 and E-2 visas
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.