flag Grenada Grenada: Investing

FDI in Figures

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.

 

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 202020212022
FDI Inward Flow (million USD) 136140160
FDI Stock (million USD) 1,681.71,829.91,989.8
Number of Greenfield Investments* 1.01.00.0
Value of Greenfield Investments (million USD) 8920

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.

 

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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.
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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.
 
 

Individual Taxes

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

Country Comparison For Corporate Taxation

  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.

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Grenada
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Grenada.
Useful Resources
Grenada Industrial Development Corporation
Contact the British Caribean Chamber of Commerce in the United Kingdom.
Grenada Trade Portal
 

Business Setup Procedures

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

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