Key Takeaways
- Stamp Duty in Grenada applies to a range of documents and transactions, including property conveyances, share transfers, leases and mortgages.
- Foreign-owned businesses should note how the duty is calculated and the alien landholding context that can affect property conveyances.
- Annual stamp tax differs from transaction stamp duty, and understanding the distinction helps non-residents meet the correct obligations.
- Payment of the duty is generally required before registration, and certain exemptions and reliefs may reduce the amount owed.
Introduction to Stamp Duty in Grenada
Stamp duty in Grenada is an active transaction tax, charged at 1% of the purchase price when real estate changes hands. The buyer carries this cost, and it sits separately from the seller-side Property Transfer Tax governed by Act No. 37/1998. This is not a zero-stamp-duty jurisdiction for property conveyances, so any foreign buyer planning to acquire land or buildings should budget for it from the outset.
This article explains how the duty is calculated, what triggers it, how it interacts with the alien landholding regime, and how and when payment is made. It is most relevant to non-resident investors, companies with foreign ownership, and the advisers structuring a property acquisition in the country.
Legal Basis and Authority for Stamp Duty in Grenada
Two distinct instruments are often confused. Transaction stamp duty applies on conveyances, while the Annual Stamp Tax, governed by the Annual Stamp Tax Act, No. 36/1992, is a recurring levy on business gross receipts.
The wider framework for property transfers draws on the Civil Code and the Land and Titles Act (Cap. 58), which sets out how land titles are transferred, documented, and registered. Property Transfer Tax, the seller-side charge that frequently travels alongside stamp duty, derives from Act No. 37/1998.
The Grenada Inland Revenue Division (IRD), located on Young Street in St. George's, administers payment. Property valuations for transfer tax purposes are handled by the IRD's Valuation Division.
Stamp duty (1%, buyer-side) and Property Transfer Tax (5%–15%, generally seller-side) are separate obligations that can both arise on the same transaction. Confirm which applies to your side of the deal before signing.
Company Incorporation in Grenada
Set up your company in Grenada with Expanship handling registration end to end.
Documents and Transactions Subject to Stamp Duty (Conveyances, Share Transfers, Leases and Mortgages)
The clearest trigger is a property conveyance. When real estate is transferred by sale, exchange, gift, or other disposition between living parties, the instrument vesting that interest in the new owner attracts duty.
Buyers ordinarily bear stamp duty on the conveyance, mortgage stamp duty where financing is involved, and the associated registration fees. A transfer of property here is read broadly: it covers any legal or equitable passing of an estate or interest to a purchaser or other recipient.
Treatment of standalone share transfers, leases, and deeds other than conveyances and mortgages is not set out in publicly retrieved sources. In many common-law Caribbean systems such instruments carry their own fixed or ad valorem duty, but no jurisdiction-specific rate schedule for these documents has been confirmed. Verify the position directly with the IRD before relying on any assumed figure.
Stamp Duty Rates and How the Duty Is Calculated
The headline rate is straightforward: 1% of the property's purchase price, measured against market value. Some practitioners express the same result through the formula (Purchase Price ÷ 150) × 1.5, which resolves to the identical 1%.
Recording fees add roughly XCD $11.50, with a further charge where a survey plan is attached to the deed. The currency is the Eastern Caribbean dollar, pegged to the US dollar at approximately 37 US cents per EC$, which makes budgeting in either currency predictable.
| Charge | Rate / amount | Who pays |
|---|---|---|
| Stamp duty | 1% of purchase price | Buyer |
| Alien Landholding Licence fee | 10% of market value | Non-national buyer |
| Recording fee | ~XCD $11.50 (more if plan affixed) | Buyer |
| Property Transfer Tax | 5% (resident vendor) / 15% (non-resident vendor) | Vendor |
For corporate buyers, the same 1% stamp duty applies across transactions, while transfer tax falls in the 5%–15% band depending on residency status, and a 10% land licence fee attaches to non-citizen companies.
Ongoing Compliance in Grenada
Keep your Grenada entity compliant with filings, returns, and statutory obligations.
Stamp Duty on Property Conveyances and the Alien Landholding Context
A foreign purchaser pays the 1% stamp duty like any buyer, but the larger cost is the landholding regime that sits on top of it. Non-nationals must obtain an Alien Landholding Licence (ALHL) before they can legally acquire real estate, and the licence fee is 10% of the property's market value.
The application goes to the Prime Minister's Office. This requirement can apply not only to individuals but to companies incorporated locally with foreign shareholders or directors, depending on how ownership and control are structured.
One route sidesteps the licence entirely. Investors making a qualifying real estate purchase under the citizenship by investment programme are not required to obtain an ALHL, which removes the 10% charge, though the 1% stamp duty still applies.
The duty base also shifts according to how the transfer is structured. Where property passes by deed of gift, the charge falls only on value exceeding EC$150,000; for transfers that are not gifts, only value above EC$20,000 is taxed.
Stamp Duty on Mortgages, Share Transfers and Other Deeds
Mortgage stamp duty exists as a distinct category, payable by the buyer where the purchase is financed. Foreign lenders can extend mortgage loans once the requirements of the alien landholding legislation are met, so cross-border financing is workable with the right consents in place.
When a loan is fully repaid, a reconveyance should be executed and registered to discharge the lender's secured interest and clean the title. Skipping this step leaves a charge on record that can complicate a later sale.
Published rate schedules for mortgage stamp duty, share transfer duty, and miscellaneous deeds were not retrievable from official sources. Treat any quoted figure for these instruments as provisional until confirmed with the IRD.
Grenada Incorporation Pricing
See transparent pricing to incorporate and maintain a company in Grenada.
Annual Stamp Tax vs. Transaction Stamp Duty: Clearing Up the Confusion
These two charges share a name and almost nothing else. Transaction stamp duty is a one-off levy triggered by a conveyance; the Annual Stamp Tax is a recurring charge on a business's gross receipts, calculated on the prior year's revenue.
The Annual Stamp Tax operates under the Annual Stamp Tax Act, No. 36/1992. Effective 2018, it runs at 0.5% for businesses with gross receipts under EC$300,000 per annum, and 0.7% for those at or above that figure, with the first EC$36,000 exempt.
The filing deadline is 31 March, and the liability may be settled across nine monthly instalments beginning in April of the filing year. Income already taxed under this Act at 0.5% is exempt from personal income tax on that same income.
If you are acquiring property, the Annual Stamp Tax is irrelevant to your purchase; if you are running a trading entity, it is a yearly compliance item unconnected to any conveyance.
Exemptions and Reliefs from Stamp Duty
Relief in this jurisdiction is built mostly into thresholds rather than carve-outs. On non-gift transfers, the first EC$20,000 of property value escapes the charge, while deed-of-gift transfers are taxed only on value above EC$150,000.
The most significant relief for foreign buyers is the citizenship by investment exemption from the ALHL. Qualifying CBI purchasers avoid the 10% licence fee, though the 1% stamp duty remains due.
Approved enterprises may also access tax holidays and duty exemptions under government incentive schemes. Agricultural land is exempt from property taxes, but whether that extends to transaction-level stamp duty is not confirmed in available sources.
Specific reliefs for first-time buyers, intra-group restructurings, or government-to-private transfers were not found in retrieved material. Where a relief matters to your structure, confirm eligibility with the IRD before completion.
How and When to Pay Stamp Duty (Stamping Before Registration)
The sequence matters more than the date. Stamp duty must be paid before the transaction is registered at the Land Registry, so stamping is effectively a precondition to perfecting title.
A notary public usually witnesses the sale agreement and confirms the legal formalities. Once executed and notarised, the deed of conveyance is submitted to the Registrar of Lands, the transfer is recorded, and the buyer's name then appears on the title.
Payment runs through the IRD. The G-TAX portal lets users register, file, pay, and request tax clearance certificates online, though property-related instruments may still be processed manually at the division.
Allow time. A typical real estate transaction takes three to six months, driven by title complexity, financing, due diligence, and whether an ALHL is needed.
Practical Implications for Companies and Investors
The 1% stamp duty is rarely the deciding number; the surrounding costs are. A non-national buyer should model the full stack: roughly 1% stamp duty, the 10% ALHL fee, about 1.5% in legal fees, the ~XCD $11.50 recording fee, and 15% VAT charged on those legal fees.
Residency status drives the transfer tax side as well. Grenadian citizens pay no transfer tax when buying and 5% when selling, whereas non-citizens pay 10% to acquire (the ALHL fee) and 15% to dispose.
For corporate structures, the same logic carries through. Companies face transfer tax of 5%–15% with the 10% land licence fee for non-citizen entities, the 1% stamp duty on all transactions, and corporation tax at 28% on profits from local business activity.
A locally incorporated company with foreign shareholders or directors may still require an Alien Landholding Licence depending on its ownership and control. Check this before structuring a property purchase through an entity.
Investors who earn income abroad are not taxed in the country on that income; liability arises when you buy property, register a vehicle or yacht, form a company, or earn income locally. The jurisdiction also maintains Double Taxation Treaties with the United Kingdom and CARICOM member states.
Outlook and Recent Developments for Stamp Duty in Grenada
Digital filing is advancing in stages. The G-TAX system replaced the legacy tax platform, with phase one launching in January 2024 for VAT, PAYE, and corporate income tax instalments, and a later phase planned to extend full online services to property owners and individuals.
Stamp duty and property transfer tax are not yet listed among the instruments handled online, which points to continued manual processing at the IRD for those payments. Plan for in-person or assisted handling of property duty until the portal expands.
No specific amendments to the stamp duty rate or base were identified in retrieved sources for the 2024–2026 window. Rates can change by Budget resolution without full legislative amendment, so confirm the applicable figures with the IRD at the time of any transaction.
The European Commission removed the jurisdiction from its tax haven blacklist in 2018, reflecting ongoing cooperation and disclosure with international bodies. For a foreign investor, that standing reduces the reputational friction that can accompany cross-border property holding.
Conclusion
For a non-resident business owner, the practical weight of Grenada's stamp duty regime falls most heavily at the moment of property acquisition, where the alien landholding context can shift the effective cost of a conveyance beyond what a straightforward rate calculation would suggest. That single intersection of stamp duty and foreign ownership status is where due diligence should be concentrated before any transaction is signed, not after.
Because payment is required before registration, an unforeseen liability at that stage cannot be deferred, making pre-transaction cost modelling a concrete necessity rather than an optional step.
How Expanship Can Help Your Business in Grenada
Expanship supports foreign buyers and corporate investors through the stamp duty side of a property transaction, from confirming the applicable rate and ALHL position to coordinating stamping ahead of registration, and we extend that support across the full lifecycle of a foreign-owned entity in the jurisdiction.
- Company formation and entity structuring
- Registered agent and registered office services
- Tax registration and return filing with the IRD
- Ongoing compliance and statutory maintenance
- Accounting and bookkeeping support
- Introductions to local banking partners
To discuss a property acquisition or set up an entity, contact Expanship Grenada.
Frequently Asked Questions
Stamp duty is 1% of the purchase price, measured against the property's market value. The same result is sometimes expressed by practitioners through the formula (Purchase Price ÷ 150) × 1.5.
Yes. A non-national must obtain an Alien Landholding Licence costing 10% of the property's market value, on top of the 1% stamp duty, plus legal fees, VAT on those fees, and a small recording fee.
Investors making a qualifying real estate purchase under the citizenship by investment programme are not required to obtain an ALHL, which removes the 10% charge. The 1% stamp duty, however, still applies to the transaction.
No. The Annual Stamp Tax under the Annual Stamp Tax Act, No. 36/1992 is a recurring levy on a business's gross receipts, charged at 0.5% or 0.7% depending on turnover, while transaction stamp duty is a one-off 1% charge on a property conveyance.
Stamp duty must be settled before the transaction is registered at the Land Registry, making payment a precondition to recording the transfer. A complete property transaction typically takes three to six months, depending on title, financing, and whether a landholding licence is required.
The G-TAX portal handles VAT, PAYE, and corporate income tax, but property transfer tax and stamp duty are not yet among the instruments available online. Those payments are generally processed manually through the Inland Revenue Division.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
