Executive Summary
Grenada is a country situated on an island in the South-Eastern Caribbean Sea. Trinidad and Tobago, Venezuela and Saint Vincent and the Grenadines are its neighbour countries. Its area covers 344 sq.km, St. George’s is its capital. The Queen of the UK is the Head of the State, who is represented by a Governor- General. English and Patois are official languages of the country.

Grenada has adopted a parliamentary democracy political organizational model and its Parliament consists of Senate and House of Representatives. Senators are appointed, while representatives are elected by the population.

Rapid development of construction and trade in the late 90ies of the twentieth century led to a significant growth of tourism. Grenada is often called The Spice Isle, as it is one of the leaders in producing and distributing spices, which constitute the main export category of the country. East Caribbean dollar (ECD) is the state currency of Grenada.

Grenada is the largest island of the country, which also includes smaller islands of the region, including Petit Martinique, Carriacou, Ronde Island, Diamond Island, Large Island and others. Apart from its capital, St George’s, Grenville and Gouyave are the biggest cities of Grenada.

The country has hilly landscape of volcanic origin and rich soil. The highest point, St. Catherine, reaches 840 metres above the sea level. There are numerous small rivers with picturesque waterfalls. Grenada has a tropical climate, which is cooled by winds in dry season, while it is quite hot in rainy seasons.  Being situated in the Southern edge of the Caribbean hurricane zone, it suffers from the hurricanes less than the majority of Caribbean islands.

Map, Flag and Coat of Arm

Types of Company

International Business Company

This company may be incorporated for all lawful business activities and it is not liable for paying taxes. Grenada ensures high degree of confidentiality, however, bearer shares are no longer issued in the jurisdiction, and agents are required to keep all the information on beneficial owners. This type of company is often chosen by European and American clients for diverse business purposes.

In order to achieve and maintain a tax exempt status, a settlor, protector and beneficiary must not be resident in Grenada. Trust law is based on English common law. A trust must not be registered and a trustee may by resident in any country. A trust may have a minimum of one and a maximum of four trustees. The maximum trust perpetuity is 120 years.

Sole proprietorship, Partnership and Limited liability company are also available for incorporation in Grenada for the purposes of conducting a business locally only. Local investors alone, Foreign investors alone, Joint venture between local and foreign investors are also recognized as ownership forms.


Grenada income tax rate is 30% on income that exceeds 60,000 ECD. There is a flat levy on salaries categories that exceed 1,000 ECD, 5,000 ECD and 9,000 ECD. The property is charged on the basis of its value that is determined every year. The tax rate depends on the location, land prices, type and size of land, as well as conditions of the building under examination. Tax rate varies depending on the property classification category: residential, commercial, hotel, agricultural, etc. A property transfer tax for foreigners is also applied, where the first 20,000 USD are tax free.

Tax year coincides with the calendar year, starting on 1st January, ending on 31st December.

Domestic companies are liable to pay corporate tax at a rate of 30%; employees, professionals and sole proprietorships are liable to the same tax rate on income that exceeds 60,000 ECD. Withholding tax is charged at a rate of 15%.There are no exchange controls and no capital gains tax in Grenada.

Global business gate Global internet marketing consultations Publisher Global networks