Grenada Property Tax Guide: Transfer Tax 5%, Annual Property Tax 0.5% 2026
Grenada's property tax system includes a transfer tax of 5% paid by the buyer on property purchases and an annual property tax of 0.5% of market value. There is no capital gains tax on property sales. Here is how Grenadian property tax works in 2026.
Property taxation in Grenada is governed by the Property Transfer Tax Act and the Land Development and Taxation Act, administered by the Inland Revenue Division. Real estate is a significant investment sector in Grenada, driven by tourism development and the Citizenship by Investment Program. Grenada's property tax system is straightforward compared to many jurisdictions. Capital gains on property sales →
Real-world example: A buyer purchases a beachfront villa in Grand Anse valued at XCD 1,000,000. Transfer tax at 5% = XCD 50,000 (paid by buyer). Annual property tax at 0.5% = XCD 5,000 per year. There is no CGT when the seller eventually sells. Compare to Jamaica where transfer tax is approximately 2% plus CGT at 15% on gains. Compare to Barbados where property transfer tax is up to 5% (stamp duty). Rental income taxation →
Property Transfer Tax (Purchase Tax)
- Rate: 5% of the higher of the purchase price or market value
- Who pays: The buyer is responsible for paying the transfer tax
- When paid: At the time of property registration and transfer of title
- Exemptions: Certain transfers may be exempt, including transfers between spouses, and approved projects under the Fiscal Incentives Act
The transfer tax is calculated on the higher of the contract price or the assessed market value determined by the Inland Revenue Division. This is a one-time tax paid upon acquisition.
Annual Property Tax
- Rate: 0.5% of the market value of the property per year
- Assessment: Based on the assessed market value determined by the IRD
- Payment: Annual payment, typically due by April 30 each year
- Scope: Applies to all real estate including residential, commercial, and land
The annual property tax at 0.5% is relatively modest compared to many jurisdictions. Properties used for approved tourism developments may qualify for reduced rates or exemptions under the Hotel Aids Act.
Registration and Legal Fees
- Legal fees: Typically 2-5% of the purchase price for conveyancing
- Registration fee: Fee for registering the property title with the Land Registry
- Stamp duty: Applicable on certain documents at nominal rates
Buyers should budget approximately 8-12% of the purchase price for total transaction costs including transfer tax (5%), legal fees, registration, and due diligence. This is higher than some Caribbean jurisdictions due to the 5% transfer tax.
Do foreigners pay the same property tax as residents?
Yes. Grenada applies the same property tax rules to residents and non-residents. There are no additional surcharges or restrictions on foreign property ownership. Foreigners may purchase property in Grenada with the same tax treatment as Grenadian citizens. An Alien Landholding License may be required for certain types of property.
Is there a tax on rental income from property?
Yes. Rental income from property is subject to personal income tax at progressive PIT rates (0-28%). Deductions for maintenance, management fees, and mortgage interest may be available. Detailed rental income guide →
Are CIP real estate investments subject to these taxes?
Yes, real estate purchased under the Citizenship by Investment Program is subject to the same transfer tax (5%) and annual property tax (0.5%). However, approved CIP real estate projects may qualify for certain concessions. The CIP minimum real estate investment is USD 220,000.