Grenada Tax Guide for New Citizens 2026: Income Tax, CGT, Inheritance

Grenada stands apart in the Caribbean CBI landscape for its unique combination of zero capital gains tax, no inheritance tax, and exclusive access to the US E-2 Treaty Investor Visa. For new citizens obtaining their Grenadian passport through the citizenship by investment programme, understanding the full tax picture is essential for effective wealth planning. Mirabello Consultancy provides this comprehensive 2026 guide to Grenada's tax system.

Whether you plan to reside on the island, use your Grenadian citizenship as part of a global tax strategy, or leverage the E-2 visa to access the US market, this guide covers every tax obligation and opportunity available to Grenada CBI citizens.

Grenada Tax Overview for CBI Citizens

Grenada operates a territorial-leaning tax system. Non-resident citizens — which includes most CBI passport holders who do not physically reside on the island — face no income tax, no capital gains tax, and no inheritance tax. The zero-tax position makes Grenada one of the most attractive CBI destinations for wealth preservation.

Considering a Caribbean programme? Speak to our experts for personalised guidance on programme selection, family inclusion, and application strategy.

Personal Income Tax in Grenada

Grenada imposes personal income tax only on income earned within Grenada. The rates are progressive, ranging from 0% on the first XCD 24,000 (approximately US $9,000) to 28% on income above XCD 60,000 (approximately US $22,000). However, this applies only to locally sourced income.

For CBI citizens who do not reside in Grenada and earn no income within the country, the effective income tax rate is zero. Foreign-sourced income — including salaries, dividends, rental income, interest, and business profits earned outside Grenada — is not taxed.

Zero Capital Gains Tax

Grenada does not impose capital gains tax on any asset class. Whether you sell shares, real estate (including your CBI qualifying property after the five-year holding period), cryptocurrency, or a business, the gain is not taxed. This applies to both residents and non-residents.

For investors who purchased CBI-qualifying real estate at $350,000 and sell after five years at an appreciated value, the entire capital gain is tax-free in Grenada. This makes the real estate route particularly attractive for investors seeking both citizenship and investment returns.

No Inheritance or Estate Tax

Grenada imposes no inheritance tax, estate tax, or gift tax. Assets held by Grenadian citizens can pass to heirs without any tax deduction. This is a significant advantage for families using Grenadian citizenship as part of a generational wealth transfer strategy.

Combined with the family inclusion provisions of the CBI programme (spouse, children, parents, grandparents, and siblings can all be included), Grenada citizenship provides both tax-free wealth transfer and passport mobility for the entire family.

The E-2 Visa Tax Advantage

Grenada's unique US E-2 Treaty Investor Visa access adds a powerful tax planning dimension. E-2 visa holders in the US are taxed on US-sourced income but can structure their affairs to minimise exposure. Combined with Grenada's zero-tax position on foreign income, investors can operate US businesses through Grenadian holding structures while keeping non-US income tax-free.

This dual access — US market entry through the E-2 plus Caribbean zero-tax benefits — is available only through Grenada among all Caribbean CBI programmes. For details on structuring, see our guide on Caribbean property investment for citizenship.

Need help choosing the right path? Book a free consultation with Mirabello Consultancy and let our team guide you through every step.

Property Tax and Real Estate Considerations

Grenada imposes property transfer tax on real estate transactions. Citizens and permanent residents pay 1% (buyer) and 5% (seller, or varying rates). Non-citizen aliens face higher rates, making CBI citizenship advantageous for property investors — the reduced transfer tax effectively lowers the cost of subsequent property transactions.

Annual property tax in Grenada is relatively modest, ranging from 0% (on unimproved agricultural land) to 0.5% of the property's assessed value. The assessed value is typically well below market value, keeping annual costs low.

CRS and International Reporting

Grenada is a signatory to the OECD Common Reporting Standard (CRS). Financial institutions in Grenada automatically report account information to the tax authorities of your country of tax residency. This means that while Grenada does not tax your income, your financial details are shared with your home country's tax authority.

Compliance with CRS is mandatory — there are no opt-outs or exemptions for CBI citizens. Investors must ensure their global tax affairs are properly structured and that all reporting obligations in their country of tax residency are met.

Comparing Grenada Tax Benefits with Other Caribbean CBI Nations

Grenada's tax position is broadly similar to other Caribbean CBI nations: zero income tax for non-residents, zero CGT, zero inheritance tax. The key differentiator is the E-2 visa treaty with the US, which no other Caribbean CBI country offers.

For investors who do not need US access, Dominica offers a lower entry point ($200,000 vs $235,000), while St. Kitts provides the strongest passport (148 visa-free countries). Explore all options on our citizenship by investment hub.

Frequently Asked Questions

Do Grenada CBI citizens pay income tax?

No. Non-resident CBI citizens pay zero income tax in Grenada. Only locally sourced income is taxed for residents, and even then rates are modest (0–28%).

Is there capital gains tax in Grenada?

No. Grenada imposes zero capital gains tax on all asset classes, including real estate, shares, cryptocurrency, and business sales. This applies to both residents and non-residents.

Does Grenada have inheritance tax?

No. Grenada does not levy inheritance tax, estate tax, or gift tax. Assets pass to heirs tax-free.

How does the E-2 visa affect my tax position?

E-2 visa holders are taxed on US-sourced income under US tax rules. However, non-US income remains tax-free under Grenada's zero-tax regime, allowing for efficient structuring of US and international business activities.

Is Grenada CRS compliant?

Yes. Grenada participates in the OECD Common Reporting Standard, and financial institutions automatically exchange account information with participating countries.

How do I start with Mirabello Consultancy?

Book a complimentary consultation with our team. We assess your tax situation, business structure, and mobility needs to recommend the optimal CBI programme and strategy. Book your free consultation today.