FAQ when Buying Real Estate in Grenada

1What taxes and fees do I have to pay?

Purchaser:

  • Alien Landholding Licence Fee: 10% for non-residents (only)
  • Legal Fees: 2% of the purchase price, approximately
  • Stamp Duty: approximately 1% of the purchase price
  • VAT: 15% on Legal Fees

Seller:

  • Property Transfer Tax:
    • – 5% of the agreed sales price for nationals and members of the OECS
    • – 15% of agreed sales price for non-nationals.
    • ( The government of Grenada allows an exemption of the first EC$ 20,000 on property.)
  • Legal Fees: Approximately 1% of the purchase price + 15% VAT
  • Real Estate Commission: 5% of the purchase price + 15% VAT
2Do I need any legal representation to complete the sale process?

Yes, the average cost for this is 2% of the agreed purchase price of the property/land that you are purchasing.

3How long does a sales transaction take to complete?

Approximately 3-6 months

4What documents are required by a foreign purchaser applying for Alien Land Holding License?
  • Police Record
  • 2-Character references
  • Bankers reference
5Who pays Real Estate agency commission?

The Seller

6What are your annual property tax?

Annual Property Tax Calculations

  • Commercial: Land 0.005 and Building 0.003
  • Residential: Land 0.001 and Building 0.0015
  • Agricultural Land: 0 (Check out Government of Grenada Website for more info)

Tax Calculation Example:

Commercial Land: Property Value $ 100,000.00 x 0.005 = EC$ 500.00 – yearly property tax