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Grenada

Trust

Taxes

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

Country details

Grenada
XCD
St. George's
North America
e n - G D
107818

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.

Tax treaties

Country Type Date Signed
Barbados DTC  1994-07-06
Greenland TIEA 2010-05-19
Poland TIEA 2012-07-19
Iceland TIEA 2010-05-19
Norway TIEA 2010-05-19
Denmark TIEA 2010-05-19
Australia TIEA 2010-03-30
Trinidad and Tobago DTC  1994-07-06
France TIEA 2010-03-31
Aruba TIEA 2012-06-21
Vanuatu TIEA 2011-05-31
Antigua and Barbuda DTC  1994-07-06
Netherlands TIEA 2010-02-18
Jamaica DTC  1994-07-06
Germany TIEA 2011-02-11
Saint Vincent and the Grenadines DTC  1994-07-06
United Kingdom DTC  1949-03-04
Guyana DTC  1994-07-06
Switzerland DTC  1963-08-26
Belgium TIEA 2010-03-18
Saint Lucia DTC  1994-07-06
Finland TIEA 2010-05-19
Belize DTC  1994-07-06
Faroe Islands TIEA 2010-05-19
South Africa DTC  1960-08-06
Ireland TIEA 2011-05-31
Saint Kitts and Nevis DTC  1994-07-06
United States TIEA 1986-12-18
Sweden TIEA 2010-05-19
Dominica DTC  1994-07-06

Procedures

We can help you incorporate a Trust in Grenada.
Please, contact us to request a free, no obligation consultation.