Country code – GD
Legal basis – Common law
Legal framework – International Trusts Act 1996
Formal name – International Trust
Settlor – The settlor is the person who establishes and whose assets are put into the trust. It may be either an individual or a legal entity. Corporations can also act as settlors or Settlor or Grantor.
The settlor may also be the beneficiary of the assets and may retain control of the trust. There may be protection from a subsequent bankruptcy after assets are gifted to the trust.
Trustee – Trustees are natural or legal persons who hold the title to the assets and manage the trust, but they cannot benefit from it.
There is no requirement for the Trustee to be resident in Grenada, but they may have to be licensed by the authorities. A minimum of 1 trustee and a maximum of 4 trustees may be appointed. Trustees may be individuals or body corporates.
Beneficiaries – Beneficiaries are those who get benefit from the trust. Beneficiaries may be natural persons or body corporates.
There are specific provisions to prevent beneficiaries from draining the trust of its assets, and spending in a thrifty way. Trusts law in Grenada allows avoiding both probate and forced heirship rules.
Protector – A protector is not mandatory.
Disclosure - The trust deed and other trust documents are private and confidential. There is no requirement to seek any governmental or other approval for the establishment of a trust. There are no filing requirements with respect to trusts.
The information regarding the settlor and beneficiaries must by statute be kept confidential.
Protection from foreign judgements – The International Trust Act has provisions to ignore and not enforce foreign judgments. The Hague Convention on Trusts does not apply in Grenada.
Protection from creditors – The International Trust Act does not repeal the Statute of Elizabeth, so transfers by the settlor to the trust may be set aside if the settlor transferred the property before the debt arose. The creditor must prove the fraudulent transfer of assets to the trust, which are not clearly defined by the law. Creditors’ claims may be brought jointly. If a fraudulent transfer is proven, trust may be declared invalid.
Protection for immigrant trusts – Trusts that migrate from other jurisdictions do not benefit from retroactive protection.
Community property – Community properties transferred to a Grenada trust may not retain its community property character.
Exclusion of foreign law - There are limited exclusions in the legislation to be able to exclude foreign law.
Choice of law – The choice of law of Grenada to govern the trust or a particular aspect of that trust, is valid, effective and conclusive regardless of any other circumstances.
Duration - The maximum duration of a Grenada trust is 120 years; charitable trusts may last indefinitely.
Compliance – A trustee shall keep accurate accounts and records of the trustee’s trusteeship.
There are no reporting requirements for an International trust in Grenada.
- Settlor as beneficiary
- Bankruptcy protection
- Ignore foreign judgements
- Hague convention on trusts
- Choice of law is binding
- Protection from immigrant trusts
- Community property provisions
- Custodian trustee permitted
- Rule against perpetuities (years)
- Limited Specific exclusion of foreign law
- Settlor can retain control Yes
Protection of Settlor
Protection from foreign judgements
- Avoidance of forced heirship
- Spendthrift provisions
- Exclusion of Statute of Elizabeth laws
- Trust invalid if transfer fraudulent
- Creditor must prove fraudulent transfer
- Clear definition of fraudulent transfers
- Separation of creditor claims
- Statutory limitation on fraudulent transfer
Protection of Beneficiary
A trust established in Grenada may not be subject to local taxes applicable to the assets and income of the trust, provided that no residents of Grenada benefit from the trust and no physical assets are located there.
It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.
You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in Grenada, transfer assets to it and receive profits from said assets.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- - Offshore Income Tax Rate
- - Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 4.00% Social Security Employee
- 5.00% Social Security Employer
- 30% Personal Income Tax Rate
- 15% VAT Rate
- 0 Tax Treaties
Grenada is a Caribbean country, member of the CARICOM and the Commonwealth. It is located in the Lesser Antilles, in the southeastern Caribbean Sea, north of Trinidad and Tobago, northeast of Venezuela, and south of Saint Vincent and the Grenadines.
It consists in the main island (Grenada) and a series of small islands, the southern Grenadines. With just 344 sq. km and a population of 109,000 inhabitants, it is the second smallest independent country in the Western Hemisphere (after Saint Kitts and Nevis).
Its capital is Saint George. The official language is English, which is the one used by the Government, although its people talk an English Creole language, known as Grenadian Creole, which is a lingua franca. Its official currency is the Eastern Caribbean Dollar (XCD), pegged to the US dollar at a 2.71:1 ratio.
Being part of the Commonwealth of Nations, Queen Elizabeth II of England is formally the head of state. The British monarch is represented by a Governor General, although the real executive power falls on the leader of the government, the Prime Minister. Although the Prime Minister of Granada is appointed by the Governor General, he is usually the leader of the party with more representation in the Parliament.
The Grenadian Parliament consists of a Senate (with 13 members) and a House of Representatives (with 15 members). The senators are appointed by the government and the opposition, while the representatives are elected by the people every 5 years.
Its economy is mainly based on offshore financial services, tourism and agriculture. Regarding agriculture, Grenada is the world’s second largest producer of nutmeg after Indonesia. Other exports include maize spices, cocoa, citrus, bananas, cloves and cinnamon. It also has a small manufacturing sector, processing other foods and producing beverages, textiles and assembly of electronic components for export.
Regarding the offshore financial sector, its legislation allows the formation of International Business Companies, which are entitled to do business outside the country and are fully tax exempt. In addition, International Companies benefit from almost non-existent reporting requirements and maximum confidentiality. Other popular offshore service in Grenada is the offshore trust for asset protection. Offshore banks in Grenada also offer a wide range of banking services.
Grenada has also a citizenship by investment program, where it is possible become a Grenadian through a US$200,000 donation or a US$350,000 real estate investment plus fees.
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