Grenada: Overview

RENTAL YIELDS

Last Updated: Dec 08, 2005

Yields are lowish in Grenada

In general, yields are around 4.3% for properties in Grenada’s coastal areas, the center of the rental market.

An average 200 sq. m. house bought at around US$600,000 can be leased for approximately US$2,500 a month. This would generate an income of US$30,000, 4.8% of the property's value.

Bigger properties produce lower yields.

Rents in the islands are predominantly seasonal but this figure is for long-term leases.

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TAXES AND COSTS

Last Updated: Jul 25, 2006

Rental income tax is very low in Grenada

Rental Income: Gross rental income is taxed at (very low) progressive rates of from 0.25% to 0.5%, depending on the tax base.

There are no capital gains or inheritance taxes.

Residents: Grenadan resident status can be acquired through application.

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BUYING GUIDE

Last Updated: Apr 02, 2008

Very high buying costs in Grenada

Roundtrip transaction costs for foreigners are between 32% and 43% of property value, the highest in the Caribbean. The Alien Landholding 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.

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LANDLORD AND TENANT

Last Updated: Jun 09, 2006

Grenada's law is neutral between landlord and tenant

Rent: Rents and rent increases can be freely negotiated, but rent increases can be reviewed under the Rent Restriction Act.

Tenant Security: The landlord must give notice terminating the rental agreement before repossessing the property. It takes an average of 180 days to evict a tenant.

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ECONOMIC GROWTH

Last Updated: Aug 31, 2006

One of the Caribbean's leaders in GDP growth

The Spice Island Grenada (pop. 107,000), earned its moniker because of the abundant spice trees in the country. The island breeze is filled with scents of nutmeg, cinnamon, vanilla, and ginger, and produces one-third of the world’s supply of nutmeg. Grenada also exports cocoa, banana, and sugar. The GDP per capita is around US$4,895.

This volcanic island brims with gorgeous beaches, with both black and sugar-fine white sand. Divers savour elegant coral reefs and the largest shipwreck in the Caribbean, and a breathtaking underwater volcano.

The country was devastated by Hurricane Ivan in September 2004, which damaged 90% of the island's buildings.

Grenada was once one of the Caribbean's fastest developing economies. Its GDP grew by 7% p.a. 1998-2000. But partly as a consequence of 9/11 the economy grew by only 1.2% p.a. 2000-2005. Growth of 7% is forecast for 2006.

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