Grenada: Personal Taxation

Grenada Income Tax

At the time of writing, personal income tax is charged at 30% on earnings in excess of ECD60,000.

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To assist the reconstruction effort after Hurricanes Ivan and Emily, the Grenadian government imposed in 2005 a levy of 5% on salaries over ECD1,000 (US$370) per month.

After strong opposition to the measure, particularly from trade unionists, the government agreed to reduce the National Reconstruction Levy to 3% for persons earning in excess of ECD1,000 per month (US$370) and up to ECD5,000 per month.

However, all other aspects of the reconstruction levy remained unchanged from the original proposals, meaning that individuals whose incomes range from ECD5,000 to ECD9,000 per month made a flat contribution of ECD225 per month, and those earning in excess of ECD9,000 per month made a flat contribution of ECD350 per month.

The Levy came into force at the beginning of 2006 and was abolished in January, 2009.

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• Location;
• Land prices in the area;
• Development potential;
• Type of land;
• Size of land and other relevant factors;
• Condition of Building.

Rates of tax are as follows:

* Effective for the year 2005 only the tax on Residential Buildings was reduced by 50%.

The tax is payable by the owner, or the tenant according to the lease agreement.

The tax is due and payable from the 1st January each year. The property owner is entitled to a 5% discount if 50% of the tax is paid by March 31st and the remaining 50% is paid by June 30th. A 10% fine is added plus 2% each month, if the tax remains unpaid.

There is a property transfer tax for foreigners, levied at 10% of the consideration for purchasers, and 15% for vendors (at the time of writing). The first USD20,000 is exempted.

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