Taxes on corporations and individuals
While Grenada is a tax haven it does have some slight taxes set in place to maintain government cash flow. Here are the main types of taxes that are applicable and must be paid on local income (income generated within Grenada):
- Corporation tax: corporations are taxed on a 30% net profit before tax adjustable for nondeductible expenses and allowable deductions;
- Dividends, royalties, interests paid to non-residents are set at 15%;
- Technical service fees paid to non-residents are taxed at 15%;
- A 15% branch remittance tax is applied;
- Personal income tax for income generated within Grenada is set at 10% for the first XCD 24,000 and 30% on any income after that;
- Property tax: property tax rate in Grenada is assessed on the market value of the property and whether it is new or old and ranges from 0% to 0.5% depending on the nature of the use of the property;
- Property transfer tax is set at 5% for residents ad 15% for non-residents;
- Value-added tax (VAT): the standard Vat tax rate in Grenada is 15% but is reduced for 10% within the tourism sector and is set at 20% in the telecommunication sector.
There are, however, many tax rates that would usually be active in other nations that have a 0% rate in Grenada, the main ones are:
- Capital gains – 0%
- Dividends paid to residents – 0%
- Surtax – 0%
- Capital duty – 0%
- Payroll – 0%
- Inheritance tax – 0%
- Net worth (or net wealth) – 0%
- Grenada departure tax – 0%
There are other areas where some people may confuse duties with taxes; for example, there is no Grenada electronics tax but instead customs.
The lack of taxation Grenada applies on some of the most lucrative transactions means that Grenada truly maintains its place as one of the most financially viable tax havens throughout the globe, and is directly related to financial freedom ensuring investors can keep their financial rights reserved. It is no wonder, then, that many investors choose to base their finances with the Caribbean country to gain more financial freedom and the ability to utilize their wealth to the maximum.