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Jan 27, 2016

Very high buying costs in Grenada


How high are realtors’ and lawyers’ fees in Grenada? What about other property purchase costs?

Transaction Costs

Who Pays?
Alien Land Holding License 10% buyer
Legal Fees 1.00% - 2.00% buyer
Stamp Duty 1.00% buyer
Property Transfer Tax 10.00%
5.00% - 15.00%
buyer
seller
Real Estate Agent´s Fee 5.00% seller
Costs paid by buyer 22.00% - 23.00%
Costs paid by seller 10.00% - 20.00%
ROUNDTRIP TRANSACTION COSTS 32.00% - 43.00%
See Footnotes
Source: Global Property Guide

Grenada oceanview hillside housesHow difficult is the property purchase 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).




Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Currency:
Grenada uses the East Caribbean Dollar (XCD) which is pegged to the US Dollar (USD) at USD1 = XCD2.70.

Alien Land Holding License:
Under the Aliens Land Holding Regulations Act No.13 of 1922, all non-nationals are required to obtain an alien land holding license to hold interest in land, real estate and/or shares and/or to be directors of companies that own real estate. The license fee is 10% of property value.

Stamp Duty:
Stamp Duty on conveyance of real property is 1% of property value.

Legal Fee:
Legal fees are negotiable at around 1% to 2% of property value. Legal fees may include registration costs that are very minimal such as the ECD5 (US$1.85) registration fee.

Property Transfer Tax:
Property transfer tax is based on the value of the property exceeding ECD20,000 (US$7,407). The tax rate is different for citizens of Grenada and non-citizens.

A citizen selling a property pays 5% transfer tax. A non-citizen selling a property pays 15% transfer tax.

A non-citizen buying a property pays 10% transfer tax.

Real Estate Agent´s Fee:
The real estate agent´s commission is negotiable, typically around 5% of property value.






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