Grenada tax system 2026

Grenada tax system 2026

Grenada Tax System 2026: Personal, Corporate, VAT, and Real Estate Overview

Grenada, often called the “Spice Isle” of the Caribbean, is not only famous for its scenic beaches and vibrant culture but also for its investor-friendly tax system. In 2026, Grenada continues to offer an attractive financial environment for individuals, businesses, and property investors, making it a top choice for global investors. Here’s a complete guide to Grenada’s tax system, including the latest changes, rates, and benefits.

Grenada operates a territorial tax system, which means residents are typically taxed only on income generated within Grenada. Income earned abroad is generally exempt, making Grenada highly appealing for expatriates and international investors. Starting in 2026, Grenada has also introduced the GTAX digital tax system, allowing individuals and businesses to file personal, corporate, and other taxes online. This system streamlines tax compliance, making it faster, more transparent, and easier to manage.

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Personal Income Tax (PIT) in Grenada

Grenada uses a progressive personal income tax system. Individuals earning income within the country are subject to tax, while foreign sourced income is generally not taxed.

Income Tax Rates (Local Source Income)

Tax Residency: Individuals spending more than 183 days in Grenada per year are considered tax residents. This progressive system ensures that low-income earners are protected, while higher earners contribute proportionally.

Income below XCD 36,000 (~USD 13,300) is tax-free.
Income between XCD 36,000 and XCD 60,000 is taxed at approximately 10%.
Income above XCD 60,000 is taxed at around 28%.

Who Must Pay Income Tax?

Individuals who spend 183 days or more in Grenada during a year are considered tax residents.
Tax residents are required to pay personal income tax on income earned within Grenada.
Even if you are not a resident, any income generated within Grenada (e.g., from employment, business, or rent) is subject to tax.
Companies operating in Grenada must pay corporate income tax on profits earned locally.
Certain sectors (tourism, tech, renewable energy) may have special incentives but are generally taxable.

Who Does Not Pay Income Tax?

Grenada uses a territorial tax system, so income earned abroad is generally not subject to Grenadian tax.
Individuals with an annual income below XCD 36,000 (~USD 13,300) are exempt from personal income tax.
If you live abroad and earn income only outside Grenada, you do not pay personal income tax in Grenada.
Participants in the Citizenship by Investment Program who invest via real estate or government donation generally do not incur income tax on foreign earnings.

This makes Grenada extremely attractive for digital nomads, consultants, remote workers, and investors whose earnings are produced outside the country.

Corporate Tax in Grenada

Businesses operating in Grenada are subject to corporate income tax on profits derived locally. Grenada’s corporate tax environment is structured to encourage entrepreneurship while maintaining fair revenue collection.

Standard corporate tax rate: 28–30%.
Special incentives may apply to sectors like tourism, technology, and renewable energy.
Non resident companies making payments to Grenadian entities may face withholding tax of 15% on dividends, interest, and royalties.

Value Added Tax (VAT)

VAT is a consumption based tax applied to goods and services in Grenada. The VAT system is part of Grenada’s modernized tax framework and is fully integrated into the GTAX online filing platform.

Standard VAT rate: 15%.
Some sectors, such as tourism and accommodation, may have reduced rates.
Essential items like basic foods may be exempt from VAT.
Businesses exceeding a certain sales threshold must register for VAT.

Real Estate and Property Taxes

Grenada offers several benefits for property investors, especially those participating in the Citizenship by Investment program. Real estate investors can also earn rental income, which is allowed and can be a profitable addition to their investment strategy.

Annual property tax is based on property type and market value.
Transfer tax applies when property is sold: generally 10% for citizens and 15% for non-nationals.
Essential items like basic foods may be exempt from VAT.
Businesses exceeding a certain sales threshold must register for VAT.

Other Taxes and Fees

Grenada also has :

Excise taxes on alcohol, tobacco, and fuel. This rates vary by product category
Stamp duties on legal and financial transactions.
Social security contributions from employers and employees. Employers contribute around 7%, bringing total contributions to approximately 13%. These fund national insurance and social benefits
Withholding Tax : 15% on payments such as dividends, interest, and royalties paid to non residents.

No Capital Gains, Inheritance, or Wealth Tax

One of Grenada’s most attractive features is the absence of several common taxes:

No capital gains tax on the sale of assets.
No inheritance or estate tax on wealth transfer.
No wealth tax on personal assets.

Digital Modernization: GTAX Platform 2026

From January 2026, Grenada implemented the GTAX online tax system, requiring digital submission for most tax types:

Personal income tax
Corporate tax
PAYE and employee withholding
Excise and withholding taxes
Licenses and compliance reports
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