Real estate is a powerful investment tool for anyone seeking financial independence or freedom.
– Robert Kiyosaki
Striving for increased profitability and maximum capital protection? Your social and political security is really important to you? All of these ambitions are quite natural, especially with current political and economic disturbances taken into account. It’s hard to say whether the problems would become less acute in the future. But there is a solution – though it may be found quite far away from your primary country of residence.
By investing in another country’s real estate or economy, you obtain a residence permit or your second citizenship, and start enjoying all the privileges.
A number of EU and Caribbean Basin countries have official immigration programs for investors – in Portugal, Greece, Cyprus, Malta, Antigua and Barbuda, Saint Kitts and Nevis, Dominica, Grenada, and Saint Lucia. Among this wide selection of options, Grenada’s passport program is particularly attractive for wealthy businessmen who are third country nationals.
Who might be interested in the citizenship of Grenada? Which projects are best suitable for investment in exchange for your second passport? Is it worth investing in the Grenadian real estate today? We’ll share all the details that are worth your attention.
The art of investing: What makes the Caribbean passport so attractive for foreign investors?
For many investors, the characteristics listed below are crucial for deciding which country will become their second home. The Grenadian passport, for instance, allows its holder to:
- Enter over 124 countries visa-free, including, but not limited to, Schengen Area countries, the UK, Singapore, China;
- Obtain a long-term visa to the US and Canada, and the E-2 business visa to the US that allows its holder to reside and work legally in the States;
- Use all the advantages of taxation options – there are no world income, dividend, inheritance, gift, or wealth taxes. The tax rate for owning real estate within the country is just 0-0.5%;
- Enjoy the absence of compulsory residence requirements prior to or after obtaining citizenship;
- New opportunities for doing business around the world using Grenada’s trading and taxation advantages;
- Political and social security, reinforced by Grenada’s membership in the Commonwealth of Nations;
- Enjoy lifelong citizen status for the whole family, including the spouse, children under the age of 26, parents and future descendants of the main applicant;
- Quick processing, just 3-5 months, and complete confidentiality of the process.
Grenada citizenship in exchange of real estate acquisition
If you’re planning on investing in real estate, Grenada is the optimal choice among the Caribbean countries with citizenship by investment programs. Wealthy Canadian, British and Chinese investors are ensuring the nation’s sustainable development through injecting foreign funds into the host economy, and, thanks to its advantageous geographical location, Grenada stays out of the way of hurricanes.
To obtain a passport, it is necessary to invest at least $350,000 in the government-chosen property. There are also some additional costs to be aware of:
- Government fee, starting at $50k;
- Application fee, $1500 per each applicant;
- Due diligence fee, $2,000 per each applicant aged between 12 to 17 years, $5,000 for each adult applicant;
- Application processing fee, $500 per each underage applicant, $1500 for each applicant aged 18 and above;
- Other fees – passport fee and swearing the oath fee.
The term of withholding the property is 4 years, and it’s possible to sell it after that. Taking into account the positive dynamics of the real estate market, real estate investment is a good way to buy an asset of an ever-increasing value.
Real estate acquisition isn’t the only way to obtain Grenadian citizenship. One may invest $200,000 in the National Transformation Fund, in which case, the non-refundable part of the investment is much larger.
To be considered eligible to apply for a Grenadian passport, the applicant must fit the following requirements:
- be of age;
- have no previous convictions or criminal records;
- have an impeccable business and personal reputation;
- confirm the legality of income;
- be of excellent health (be free of oncological diseases and transmitted infectious diseases);
- be able to meet the financial requirements.
Which development projects one may invest in to get a second passport
Per requirements of the government passport program of Grenada, the foreign national is expected to invest in a government-approved real estate object. To obtain your second citizenship in 2018, you may choose one of the 13 development projects. The list includes, among others, the 5-star Levera Nature & Beach Resort on the north-east coast, the luxury Bacolet Bay beach resort, the fashionable Grenada Resort Complex in Grenada’s south, Hideaway True Blue condominiums in the prestigious True Blue area of the capital, the grand Mount Cinnamon Resort & Beach Club complex located in southern hills of the country.
The Grenadian citizenship by investment project allows fractional ownership and provides a number of exclusive benefits to the investor. By investing money in a development project, the investor
- Does not have to search for tenants, but starts receiving regular income from the first day of bringing the facility into operation;
- Does not pay for the maintenance of the facility;
- Gets the opportunity to stay in a luxury setting with a significant discount;
- May sell the share and recover the investment with a significant profit after 4 years.
Apartments, homes and villas in Grenada
Purchasing shares in real estate (for the purpose of obtaining citizenship) should be distinguished from acquiring real estate privately. Of course, in Grenada it is possible to buy real estate for personal use, but we would recommend to do this after obtaining the passport, since local residents are exempt from paying some taxes, unlike in the EU countries.
The real estate pricing depends on the housing type. A 100-150 square-meter house in the capital, or a 2-3-room apartment with a swimming pool and a terrace, will cost around $260-500k. Villas with several bedrooms, a private beach, a terrace, a swimming pool and a marina start from $ 1.2-3 million. A grand 500-570-square-meter 5-bedroom, waterfront villa with a private beach, parking area, and a yacht harbor costs about $ 3.2-3.8 million.
Personal real estate objects may be sold at any time.
The government provides various tax reliefs and rebates, so the residents only pay a 5% transfer property tax, whereas non-citizens have to pay 15% of the value of property.
NOTE! There is a ban imposed on sale of certain land plots, so not all real estate objects can be purchased for full ownership. But it’s possible to sign a long-term lease agreement for up to 99 years.
Grenada real estate market: Current situation and forecasts
According to the research done by Century21 real estate company, the Grenadian Deeds Registry, and the Grenada Citizenship by Investment Committee, the local real estate market has been demonstrating a steady year-to-year improvement since 2012.
In 2015, the sales volume grew by 71%, and in 2016, by yet another 23% compared to the previous year. The average transaction size in 2016 was US$86,905 per transaction. The most popular location among real estate buyers is St. George’s – Grenada’s capital and largest city accounts for 72% of total transactions.
The increasing demand for Grenadian real estate is fuelled by
the country’s growing popularity as a resort destination, development of shipping business, sailing and diving (the construction of a 500-meter breakwater in Sauteurs, to name one of the most significant recently-completed projects), opening of the Tyrrel Bay marina, completion of resort real estate objects, tax cuts levied on non-Grenadian real estate buyers and sellers.
All of the above makes investing in Grenada’s real estate exceptionally advantageous, and not only from the point of view of long-term goals. The Grenadian passport is your entry into the world of advantages: free travel across the entire globe, politically and economically stable environment that forms your safety net.
Comparing Caribbean CBI programs
Interested in expanding your personal and economic freedoms by investing in a Grenadian passport? Our qualified experts will consult you on your specific case, calculate the precise cost, and provide advice at every stage of the passport acquisition process.
We also urge our clients to compare conditions of the various CBI programs to make up their minds and opt for what suits them best. Speaking of Caribbean nations, here are some more reasons to strongly consider one of the countries in the region as your second home:
- Antigua and Barbuda passport: visa-free entry to over 136 countries; passports are issued within 3-5 months.
- Dominican passport: visa-free entry to 91 country; passports are issued within 3-6 months; no residence requirements; no personal interview.
- Saint Kitts and Nevis passport: visa-free entry to 132 countries; no residence requirements; passports are issued within 3-5 months. The program has been active since 1984!