Grenada: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2025, FDI inflows to Grenada increased to USD 267 million in 2024, from 260 million one year earlier, well above the 2020-22 average (USD 183.6 million). At the end of the same period, the total stock of inward FDI stood at USD 2.43 billion, representing around 175.1% of the country’s GDP. Tourism attracts the vast majority of FDI, followed by the construction sector. Proceeds from the Citizenship-by-Investment (CBI) programme are attracting more and more investments: according to the IMF, a surge in CBI revenue supported a strong improvement in the fiscal position and reduction in public debt during 2024. Although specific country breakdowns of FDI into Grenada are not readily available, the United States is considered to be the largest source of FDI into Grenada, followed by the United Kingdom, Canada, and China. Grenada is one of the region’s most attractive tourism destinations and an excellent investment destination. Investors are encouraged to enter and operate enterprises in all fields of economic activity.

Grenada offers a comprehensive suite of investment incentives, including investment allowances, deductible business expenses, and exemptions from customs duties. The country’s robust legal framework, combined with political stability, reliable infrastructure, strategic location, and equal treatment of domestic and foreign investors, contributes to a favourable and competitive investment climate. Foreign ownership or control in Grenada faces minimal restrictions, except in cases where enterprises are deemed detrimental to national security, environmental well-being, public health, or the preservation of national culture, or where they violate Grenada's laws. Grenada adopts a liberal approach to FDI and actively promotes it: the current government prioritises investment in key sectors such as tourism, agribusiness, education, health and wellness, information and communication technology, and energy. There is also a strong governmental focus on developing the marine and creative economies. In addition, international investments in Grenada span a range of industries, including construction, manufacturing, retail, duty-free enterprises, and agriculture. The Grenada Investment Development Corporation (GIDC) functions as the national investment promotion agency. It oversees the country’s investment screening and approval process, assessing and authorising incoming foreign investments to ensure alignment with national development priorities. Grenada ranks 46th among the 180 economies on the Corruption Perception Index 2024.

Country Comparison For the Protection of Investors

	Grenada	Latin America & Caribbean	United States	Germany
Index of Transaction Transparency*	4.0	4.1	7.0	5.0
Index of Manager’s Responsibility**	8.0	5.2	9.0	5.0
Index of Shareholders’ Power***	8.0	6.7	9.0	5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment	2022	2023	2024
FDI Inward Flow (million USD)	202	260	267
FDI Stock (million USD)	1,991.4	2,211.3	2,437.0
Number of Greenfield Investments*	0.0	0.0	0.0

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

Tax Rates

Value Added Tax (VAT): 15% (standard rate).
A reduced rate of 10% applies to the tourism sector (hotel accommodation and dive operations) and a 20% rate applies to the telecommunications sector.
Zero-rated items include supplies or imports of food for human consumption (i.e. flour, sugar, rice, milk, infant preparations); supply of electricity provided to residential premises for private or domestic use; supply of stamps by the Grenada Postal Corporation; supply of gasoline, diesel, LPG, or Kerosene, if it is subject to tax under the Petrol Tax Act 2005.
Exempt items include certain financial services; the supply of vacant land or agricultural land; the sale of residential real property; certain education services; certain medical services; the supply of goods or services by an approved non-profit body; etc.
Click here for more information.
Company Tax: 28%
Withholding Taxes: Dividends: 0, Interests: 15%, Royalties: 15%.
Bilateral Agreement: The United Kingdom and Grenada are bound by a double taxation treaty.
Social Security Contributions Paid By Employers: 6% (capped at XCD 5,000 per month).
Other Domestic Resources: Inland Revenue Division; Overview of Grenada's tax measures in response to Covid-19; Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

	Grenada	Latin America & Caribbean	United States	Germany
Number of Payments of Taxes per Year	42.0	28.2	10.6	9.0
Time Taken For Administrative Formalities (Hours)	140.0	327.5	175.0	218.0
Total Share of Taxes (% of Profit)	47.8	46.8	36.6	48.8

Setting Up a Company	Grenada	Latin America & Caribbean
Procedures (number)	6.00	8.00
Time (days)	12.00	25.22

Any Comment About This Content? Report It to Us.

Personal Income tax
Up to XCD 24,000	10%
Above XCD 24,000	28%

Grenada: Investing

FDI in Figures

Country Comparison For the Protection of Investors

Tax Rates

Individual Taxes

Country Comparison For Corporate Taxation

Investment Opportunities

Business Setup Procedures