Grenada: Investing
According to UNCTAD's World Investment Report 2023, FDI inflows to Grenada increased to USD 160 million in 2022, from 140 million one year earlier, but were still below the pre-pandemic level of 2019 (USD 204 million). In 2022, the total stock FDI stood at nearly USD 2 billion, representing around 166.7% 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, although regulatory measures have also increased following a failed aquaculture project. The United States is the largest source of FDI into Grenada, followed by the United Kingdom, Canada, and China.
Grenada boasts a robust legal framework for business operations. As a parliamentary democracy with a functional court system and low crime rates, the nation experiences no political violence. Additionally, a comprehensive investment incentive regime, stable economy, established trade agreements, and proactive investment promotion experts collectively foster a favorable and appealing investment environment. 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, with the New National Party government identifying six priority sectors for investment: health and wellness, education focusing on youth and sports, agriculture, food security, and the marine economy, physical and digital infrastructure, culture and the creative economy, and energy transition and the environment. The Grenada Investment Development Corporation (GIDC) serves as the country’s investment promotion agency. Grenada operates an investment screening and approval system for incoming foreign investment, overseen by the Grenada Investment Development Corporation, which evaluates and approves inbound investments. Grenada ranks 53rd among the 180 economies on the 2023 Corruption Perception Index.
| 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 | 2020 | 2021 | 2022 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 136 | 140 | 160 |
| FDI Stock (million USD) | 1,681.7 | 1,829.9 | 1,989.8 |
| Number of Greenfield Investments* | 1.0 | 1.0 | 0.0 |
| Value of Greenfield Investments (million USD) | 89 | 2 | 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.
| Personal Income tax | |
| Up to XCD 24,000 | 10% |
| Above XCD 24,000 | 28% |
| 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 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Grenada | Latin America & Caribbean |
|---|---|---|
| Procedures (number) | 6.00 | 8.00 |
| Time (days) | 12.00 | 25.22 |
Source: Doing Business.
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Latest Update: May 2024
