Grenada E-2 Visa and IBC Strategy: What Works in 2026

Grenada E-2 Visa and IBC Strategy: What Works in 2026

Grenada is still the only Caribbean citizenship by investment country whose nationals can apply for the US E-2 Treaty Investor visa. Two parts of the old "Grenada E-2 plus IBC" play no longer hold, however. Grenada repealed its International Companies Act with effect from 31 December 2018, so there is no tax-exempt Grenadian IBC to use. And since 23 December 2022, a person who acquired Grenadian citizenship through an investment must have been domiciled in Grenada for a continuous period of at least three years before applying for an E-2 visa. This guide sets out the strategy as it works in 2026: citizenship from $235,000, three years of genuine life in Grenada, then a US business owned at least 50% by Grenadian nationals.

What Is the Grenada E-2 Strategy?

The Grenada E-2 strategy is a two-stage plan for nationals of countries that have no investor treaty with the United States. First, the investor obtains Grenadian citizenship through the Grenada Citizenship by Investment Programme. Later, as a Grenadian national, the investor applies for an E-2 Treaty Investor visa to direct and develop a genuine business in the United States in which they have made a substantial investment.

The strategy rests on one fact: Grenada and the United States have a bilateral investment treaty, in force since 1989, which makes Grenadian nationals eligible for E-2 status. Among the six Caribbean and Pacific citizenship by investment programmes that most investors compare (Antigua and Barbuda, St. Kitts and Nevis, Dominica, St. Lucia, Vanuatu and Grenada), only Grenada holds E-2 treaty status. The US Department of State publishes the list of treaty countries.

What Changed: The Three-Year Domicile Rule and the End of the IBC

The Three-Year Domicile Rule (since 23 December 2022)

A US law of 23 December 2022 amended the E visa definition in the Immigration and Nationality Act, section 101(a)(15)(E). A person who acquired the treaty nationality through a financial investment, and who has never held E status before, must have been domiciled in that country for a continuous period of at least three years at any point before applying for the E visa.

• It applies to every Grenadian citizen by investment, whichever route was used (the National Transformation Fund or real estate).
• The three years need not be the three years immediately before the application, but they must be continuous.
• "Domiciled" is a stronger test than visiting or holding a residence card: Grenada must genuinely be the family's home.
• It does not apply to someone who has held E status before.

Any guide promising an E-2 visa within months of a Grenadian passport predates this law. We plan every Grenada E-2 engagement around the three-year rule.

The Grenadian IBC No Longer Exists

Older versions of this strategy placed a Grenadian International Business Company between the investor and the US business. Grenada repealed its International Companies Act with effect from 31 December 2018, and a company resident in Grenada now pays corporate income tax at 28% on its worldwide income. The same happened across the region: between 2018 and 2022 all five Eastern Caribbean citizenship by investment countries closed their tax-exempt company regimes, as explained in our guide to Caribbean citizenship and company structures.

An IBC was also never what made the investment qualify. For E-2 purposes the US looks at the nationality of the people who own the business, not at the place where an intermediate company is registered.

Step-by-Step: How the Strategy Works in 2026

Step 1: Obtain Grenadian Citizenship Through CBI

The investor applies under Grenada's Citizenship by Investment Programme through one of two routes:

• National Transformation Fund (NTF): a non-refundable contribution of $235,000 for a family of up to four, in force since 1 July 2024.
• Approved real estate: $270,000 invested in a government-approved project, held for at least five years, plus a $50,000 contribution to the Government.

Government fees are charged on top: an application fee of $1,500 per person, due diligence of $5,000 per applicant aged 17 or over, processing, interview, passport and oath fees. The Investment Migration Agency states that applications are approved within 60 business days of submission, subject to due diligence and receipt of funds; in our practice the whole journey, from preparing the file to receiving passports, takes about six months.

Step 2: Make Grenada Your Home for Three Continuous Years

This is the step that older guides leave out. To meet the domicile condition, the family needs to establish a real life in Grenada: a home, day-to-day presence, and the ties that show Grenada is where they intend to live. Practical points we plan with clients include residence documentation, the family's tax position in Grenada and in the country they leave, schooling, and evidence that will satisfy a US consular officer later. Grenada's citizenship by investment programme itself has no residence requirement; the three years are a condition of US law for the E-2 only.

Step 3: Set Up and Fund the US Business

The E-2 enterprise is normally a US company, such as a corporation or LLC, that is at least 50% owned by Grenadian nationals. Ownership can be direct or through a holding company, provided the chain traces back to Grenadian nationals who hold at least half of the business. If a holding company is used, where it is managed decides where it is taxed, so it should be planned with a tax adviser rather than chosen for a headline rate.

US law sets no fixed minimum, but the investment must be "substantial" in proportion to the cost of the business, irrevocably committed and at risk. The ranges below are indicative and reflect common consular practice:

The business must be a real, operating enterprise producing goods or services. Passive holdings, such as undeveloped land or a portfolio of shares, do not qualify, and the business must not be "marginal": it needs the capacity to generate more than a living for the investor and family.

Step 4: Apply for the E-2 Visa

The application is filed at a US embassy or consulate, generally where the applicant lives. It requires a detailed business plan, proof of the investment and the lawful source of the funds, the ownership chart, lease agreements, hiring plans and financial projections, and, for citizens by investment, evidence of the three years of domicile in Grenada.

Not sure which programme is right for you? Book a free consultation with Mirabello Consultancy.

Grenada E-2 vs. EB-5: Which Route Fits?

For investors whose real goal is a green card, the US EB-5 programme is the direct route. The Grenada E-2 strategy suits families who value a second citizenship in its own right and are willing to make Grenada their home first.

Tax: What the E-2 Does and Does Not Change

The E-2 is an immigration status; it does not decide where you pay tax. An E-2 investor who lives and works in the United States will usually meet the substantial presence test and become a US tax resident, taxed on worldwide income in the same way as a green card holder. The difference is that US tax residence on an E-2 generally ends when the investor stops living in the US, while a green card holder stays a US tax resident until the card is formally given up. During the three years in Grenada, the family's tax position in Grenada and in the country they leave must also be planned. We work with independent cross-border tax advisers on every Grenada E-2 file.

Common Mistakes to Avoid

• Applying for the E-2 before completing three continuous years of domicile in Grenada.
• Treating "domicile" as a formality: a holiday home or a residence card alone is not enough.
• Relying on a Grenadian IBC or any other "0% offshore" company: the regime was repealed in 2018, and a company managed in Grenada pays 28%.
• Ownership chains that do not trace back to at least 50% Grenadian nationals.
• Investing in a passive or marginal business, or leaving funds unspent in escrow.
• Failing to document the lawful source of the investment funds from the start.

Realistic Timeline

Families who already live in Grenada, or who have held E status before, are in a different position, and we assess those cases individually.

Regulatory Developments: ECCIRA

The Eastern Caribbean Citizenship by Investment Regulatory Authority (ECCIRA), established in December 2025, to be headquartered in Grenada and expected to begin operating later in 2026, is set to introduce a supranational regulatory framework overseeing all five Eastern Caribbean CBI programmes; none of its measures is yet in force. Its mandate includes harmonised due diligence standards, minimum investment thresholds and programme integrity benchmarks. For a broader view of how the programmes compare, see our guide to the best citizenship by investment programmes.

Who Is This Strategy Best Suited For?

• Entrepreneurs from non-treaty countries who want to run a genuine business in the United States and are prepared to live in Grenada for three years first.
• Families who value the Grenadian passport in its own right, with the E-2 as a later option rather than the only goal.
• Business owners who want control of their US enterprise rather than a passive EB-5 investment.
• Families with children: E-2 dependants can attend US schools, and E-2 spouses are authorised to work in the US.

It is less suitable for investors who need to be in the US within a year, or whose main goal is a green card. For mobility without a US focus, St. Kitts and Nevis or Dominica may be better value, and residence alternatives in Europe and the Gulf are covered in our golden visa programme guide.