Grenada: The commercial and personal tax benefits available to foreigners
Tax is a concept that has, over the years, dominated headlines in global media for a plethora of reasons. It has to be said that the common negative stereotypes associated with tax have, in many ways, made it a taboo subject which creates an air of uncertainty for investors looking to move their money overseas, as cross-border investment programs tend to offer benefits that reduce or remove different types of tax as an incentive. It is for these above reasons that in today’s article, we will unpick one real world example, specifically Grenada, where citizenship by investment is available for people from abroad, and tax benefits are part of the deal.
Grenada is an island in the Caribbean Sea, just under 200km from the coast of Venezuela, making the proximity with Latin America very beneficial in terms of development of potential trade links for the future, and centring the focus of foreign investors on the Caribbean nation. With this background established, it is essential to understand the position that Grenada has in the wider picture of citizenship by investment schemes, in order to divulge the implications of the tax exemptions that come into play when getting involved in their own investment scheme. This is because, as is the way with investments of any kind, research is the most important stage in the build-up to commitment to your investment, if not only to provide peace of mind that the decision you are making is the right one, but also to ensure you do not stray out of your depth with fine print and legislation that could come back to be a problem in the future.
Now you have hopefully had the opportunity to read our other article regarding the citizenship by investment process itself, below you will find two lists outlining the tax benefits that come with citizenship in Grenada, separated into personal and commercial to help with this stage of planning and researching your investment:
No foreign income tax
No gift taxes
No inheritance taxes
No wealth taxes
No capital gains tax
Corporate tax exemption
Exemption from import duties
Tax relief benefits
It has to be noted that the citizenship by investment scheme can be done by anyone with the stipulated capital required, making it extremely accessible. Not only this, but you are able to live in your own country and still obtain the passport from Grenada, and you only become a tax resident if you live there for more than 183 days a year or have an income that is earned within Grenada. Commercially speaking, as this too is important if your motive for investing is with business in mind, corporation tax residency is only applicable to you if your company is registered or managed in Grenada and generates an income that exceeds the minimum taxable limit.
Another point that is extremely interesting to touch upon, and we have briefly in a previous article about dual citizenship and tax, is the idea of ‘tax treaties’. It has been found that some dual citizenship programmes have caused people to be doubly taxed, as although there are benefits with the investment scheme in the host nation, there is a propensity for income to be taxed in your home nation too. This is where tax treaties come along, and as Grenada is a Commonwealth country, if your home country where your predominant income is generated is also a member state, there is a possibility you can be rewarded with foreign tax credits in Grenada! If you are unsure about foreign tax credits, they are essentially a sum that can be applied to a tax bill and lessen the amount owed by the taxpayer.
If this article has made you intrigued to find out more about Grenada and citizenship by investment, please do not hesitate to contact us today. At Creimerman, our team of global citizens work with clients from across the globe to help make their cross-border ventures a success, and we would love for you to be the next.