Verified Facts
The tax rates in Grenada range from 10% to 30% for individuals and 20% for corporations, with various incentives and exemptions available for specific industries and individuals.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Grenada has a territorial taxation system, which means that only income earned within the country is subject to tax, with some exceptions for international business companies and other special entities. Residency rules for tax purposes in Grenada are based on the number of days spent in the country, with individuals considered resident if they spend more than 183 days in a calendar year, or have a permanent home available for their use at any time during the year.
The tax system in Grenada is designed to encourage foreign investment and economic growth, with various incentives and exemptions available for specific industries, such as tourism and manufacturing. The country has a relatively low tax burden, with a total tax revenue of around 25% of GDP. The tax authority in Grenada is the Inland Revenue Division, which is responsible for collecting and administering taxes, as well as providing guidance and support to taxpayers.
Personal Income Tax
| Income Bracket (XCD) | Tax Rate |
|---|---|
| 0 - 24,000 | 10% |
| 24,001 - 48,000 | 15% |
| 48,001 - 72,000 | 20% |
| 72,001 - 96,000 | 25% |
| 96,001 and above | 30% |
| Personal income tax in Grenada is progressive, with five tax brackets and a top rate of 30%. Taxpayers are entitled to various deductions and allowances, including a personal allowance of XCD 24,000, as well as deductions for mortgage interest, charitable donations, and medical expenses. Tax returns must be filed by April 30th of each year, and taxpayers can choose to file online or by paper. |
Corporate & Business Tax
- The corporate tax rate in Grenada is 20%, with a reduced rate of 10% for companies engaged in certain activities, such as tourism and manufacturing.
- Small businesses and startups may be eligible for incentives and exemptions, such as a reduced tax rate or a tax holiday, depending on their specific circumstances.
- Grenada has several free zones, including the Grenada Free Zone and the Grenada Industrial Estate, which offer a range of benefits, including tax exemptions and streamlined customs procedures.
- Companies must register with the Inland Revenue Division and obtain a tax identification number in order to operate in Grenada.
- Companies are required to file annual tax returns and pay any taxes due by the end of the tax year.
VAT / Sales Tax
- The standard VAT rate in Grenada is 15%, with a reduced rate of 10% for certain goods and services, such as food and hotel accommodation.
- Exemptions are available for certain goods and services, such as healthcare and education, as well as for charitable organizations and non-profit entities.
- A tourist refund scheme is available for international visitors, allowing them to claim a refund of VAT on certain purchases made during their stay.
- VAT returns must be filed and any taxes due must be paid by the 21st of the month following the end of the tax period.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers are based on the number of days spent in Grenada, with individuals considered resident if they spend more than 183 days in a calendar year.
- Grenada has double taxation treaties with 24 countries, including the UK, Canada, and the US, which can help to reduce or eliminate double taxation.
- Expats and foreign workers may be required to register with the Inland Revenue Division and obtain a tax identification number in order to work in Grenada.
- Social security contributions are mandatory for all employees, including expats and foreign workers, with a contribution rate of 4% for employees and 6% for employers.
- Expats and foreign workers may be eligible for remittance rules, which allow them to transfer funds out of Grenada without incurring tax penalties.
- Expats and foreign workers should consult with a qualified tax professional to ensure they are meeting their tax obligations and taking advantage of available incentives and exemptions.
Crypto & Investment Income
- Investment income, such as dividends, interest, and rent, is subject to tax in Grenada, with a top rate of 30%.
- Cryptocurrency is considered a form of investment income, and is subject to tax in the same way as other forms of investment income.
- Capital gains tax is levied on the sale of assets, such as real estate and securities, with a top rate of 15%.
- Tax incentives may be available for certain types of investment, such as investments in the tourism or manufacturing sectors.