How to buy on Grenada, Carriacou & Petite Martinique
Foreigners must apply for an Alien Landholding License which costs EC$1,800 plus 10% of the purchase price. Along with your completed application you will need to provide your local lawyer (who will make the application on your behalf) with the following information:
Original plans of the property/land
Certificate of character (From your local police station)
Character reference (Two are needed)
Banker’s Reference
Deposits
There is no standard procedure on this, but common practice is to offer 10% of the purchase price as a deposit, which is forfeited if the buyer pulls out. In some cases if the vendor pulls out then the buyers 10% is returned as well as 10% from the vendor. In the unlikely event that the Alien’s Landholding License is not granted, then the deposit is refunded.
Stamp Duty
1% of purchase price
GCT
5% of legal fees go to the Government of Grenada for General Consumption Tax (however, this is something your lawyer pays)
Property Transfer Tax
10% for non citizens of the purchase price of the property land or shares in a company valued in excess of EC$20,000.
Vendors Tax
15% for non citizens
5% for Grenadian citizens
There is no capital gains tax, inheritance tax or gift tax in Grenada.
Local solicitors usually charge 2% of the purchase price.
MORTGAGES
Local mortgages are available (subject to status) up to 100% of the property value with maximum term of 25 years but both the LTV (loan to value) and the term vary of course according to a number of factors. Interest rates are generally between 7-8%. There is no minimum you can borrow, but you will always need to prove that you have the funds available to finance a mortgage independently from rental income (if you are planning to rent your Grenada property).