Grenada is known as one of the safest islands in the Caribbean with amazing beaches, magnificent waterfalls and tropical rainforests.
Many visitors who come to the island immediately fall in love with the beauty of the island and the friendliness of its people.
As a result, persons often desire owning property so they can return frequently. If you are one of these individuals you may be wondering, can foreigners buy real estate in Grenada?
Yes, foreigners can buy real estate in Grenada. According to the Alien Landholding Regulation Act, both non Grenadian businesses and non-nationals must apply for and obtain an Alien Landholding Licence to purchase property. The cost of the application is 10% of the price of the property.
What Are The Requirements To Buy Real Estate In Grenada
Once you have identified the ideal property, an official offer letter is issued by the real estate provider and a sale agreement is issued.
If both parties are comfortable with the terms of the offer, a sales agreement is created. Upon signing a deposit is required which is typically about 10% of the purchase price.
A title search is carried out at the local registry to establish that the seller is the legal owner of the property and all related property taxes are up to date.
Other expenses that the purchasers should be aware of include legal fees which is about 2% of the purchase price and stamp duty which is about 1% of the purchase price. Value Added Tax which is 15% is usually added to the legal fees.
To ascertain the location of the all the boundaries, it is advised to hire a surveyor which is about 0.5% of the purchase price.
There can be other miscellaneous expenses so it is prudent to set aside a small contingency fund.
What Are The Requirements To Sell Real Estate In Grenada
Alternatively, if you are selling property in Grenada, property transfer tax is levied on the selling price.
Grenadians and members of all OECS countries are charged 5% of the selling price while non-nationals are taxed at 15% of the selling price.
However, there is an exemption of $20,000 on the property’s selling price prior to the calculation of property transfer tax.
Legal fees and real estate commission are approximately 2% and 5% respectively. Payment of 15% Value Added Tax is also required.
Best Real Estate Companies In Grenada
The three main real estate companies in Grenada are detailed below as well as their address, phone number and email address.
Terra Caribbean| Spiceland Mall| 14734393993| [email protected]
Remax Grenada| Grand Anse| 14734406675| [email protected]
Century 21 Grenada| Excel Plaza| 14734405227| [email protected]
Property Taxes In Grenada
According to Act No.2 of 1997, property tax is levied to property owners on the island.
The tax is based on the value of the property and development opportunities.
Demand notices are usually mailed to owners from January of each year. A rebate of 5% is available for payment on or before the due date.
There is a penalty and interest levied on unpaid tax within 60 days from the due date.
There is no property tax on agricultural lands.
If you are living abroad, have no fear as payments can be made online using the portal pay.gov.gd.
Final Thoughts
Hope this guide was valuable as you decide to acquire real estate in Grenada. We know that you will enjoy living or spending quality time in the isle of Spice.
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