Grenada Citizenship by Investment

Grenada’s Citizenship by Investment program is built around a capital commitment, not ongoing income. The key qualifying threshold is an investment of 235000 USD, either as a contribution to the National Transformation Fund or into government‑approved real estate. There is no minimum monthly income or savings requirement, and Social Security or pension income is not part of the qualification criteria. A FIRE retiree living off 4000 USD/month of ETF dividends and rental income qualifies as long as they can document a clean source of the 235000 USD investment and pay the additional government and due‑diligence fees.

Processing is relatively fast for a citizenship program: the official range is 12–16 weeks from complete file to approval, assuming no issues in due‑diligence. There is no requirement to visit Grenada before, during, or after the application, and physical presence is set at 0 days/year. That means you can acquire a second passport while remaining full‑time in your current base country. Because this is direct naturalization, the visa entry itself is non‑renewable and there is no separate “residence permit” duration to worry about.

From day one you are a Grenadian citizen, with 0 years required to transition from residency to citizenship and the ability to live and work locally if you choose. The program also leads to permanent status because citizenship in Grenada is effectively the end state, not a stepping stone to later PR. There is no maximum consecutive absence requirement for Grenada; functionally, you can remain abroad indefinitely without endangering your status, which aligns well with a multi‑flag strategy or someone keeping their main home and tax residency elsewhere.

Friction points are real but finite: health insurance is mandatory, and you’ll go through a detailed due‑diligence process that scrutinizes the legitimacy of your 235000 USD and runs global background checks, but no FBI‑specific check, apostille, medical exam, interview, or local bank account is required under program rules. Bureaucracy is modest (2.175/5), though you must apply via an authorized agent and cannot file directly with the government. This makes most sense if you’re comfortable allocating at least 235000 USD of your portfolio to a second‑citizenship play and you value 0 days/year presence requirements. It’s a poor fit if your investable capital is under 235000 USD or you’d rather deploy that capital into higher‑yield assets than a largely sunk NTF contribution.

Local tax picture

Grenada runs a territorial tax regime. Under a territorial system, tax is focused on income sourced in Grenada: local employment or self‑employment, business profits from activities carried on in Grenada, and rental income from Grenadian property fall into the local tax net. Foreign‑source income such as a remote salary paid by a foreign employer, ETF dividends from a foreign brokerage account, foreign pension distributions, and rental income from properties located outside Grenada are generally outside scope as long as they are not treated as Grenadian‑source under local law. For a FIRE retiree living on dividends from a US or Canadian brokerage and rents from a property in Texas or Ontario, Grenadian tax exposure is primarily a question only if they start generating Grenadian‑source income.

For capital gains on foreign investments, such as selling index funds or ETFs held in a US or European brokerage, gains are ordinarily exempt under territorial rules because they arise outside Grenada and have no Grenadian source. That means portfolio rebalancing in your home brokerage or realizing long‑term gains on foreign stocks does not trigger Grenadian capital gains tax, even if you later spend the proceeds while in Grenada.

Tax residency is usually based on physical presence; the common threshold used across territorial systems is 183 days in a calendar year. Under a 0 days/year physical presence requirement and with many investors not spending extended time in Grenada, many CBI holders never become Grenadian tax residents at all. Tax residency is not automatically triggered by being granted citizenship; it is driven by presence and, in some cases, domicile or permanent home tests, which you’d confirm with a local advisor if you plan to spend substantial time on the island.

Local filing obligations depend on whether you actually become tax resident or derive Grenadian‑source income. Someone who holds the passport but spends 0–60 days a year in Grenada and has no local income often has no ongoing local filing. Once you earn Grenadian‑source salary, business income, or property income or cross the residency threshold, you should expect to obtain a local tax ID and file annual returns on that Grenadian‑source income according to local deadlines.

Grenada has a tax treaty with the US. Practically, this helps reduce double taxation on income that is taxable in both jurisdictions (for example, Grenadian‑source employment income for a US citizen who is also a Grenadian tax resident) via foreign tax credits and treaty tie‑breaker rules. The treaty can also address withholding rates on certain payments and coordination around government pensions, but it does not eliminate US worldwide taxation for US citizens.

For US Citizens and Green Card Holders

US persons remain taxed on worldwide income regardless of Grenadian citizenship or residence. The Foreign Earned Income Exclusion (FEIE), claimed on Form 2555, can shield up to 126,500 USD of earned income for 2024 (remote salary, consulting, self‑employment), but it does nothing for dividends, interest, capital gains, rental income, Social Security, or IRA/401(k) distributions. Because this program has a 0 days/year presence requirement, many US investors will not spend 330 days abroad to use the Physical Presence Test. If you do base yourself in Grenada or split time among several non‑US countries, you might qualify either under the 330‑day Physical Presence Test or, with stronger ties, the Bona Fide Residence Test.

The Foreign Tax Credit (FTC), claimed on Form 1116, offsets US tax only when you actually pay foreign income tax. Under Grenada’s territorial regime, foreign‑source dividends, interest, and capital gains often face a 0% Grenadian tax rate, so there is no foreign tax to credit against US tax on those streams. FTC becomes relevant if you earn Grenadian‑source salary, business income, or local rental income that Grenada taxes at a positive rate; in that case, those Grenadian taxes can offset your US liability on the same income.

FBAR (FinCEN 114) kicks in when the aggregate balance of your non‑US financial accounts exceeds 10,000 USD at any point in the year. This is separate from FATCA Form 8938, which has higher thresholds but similar reporting logic. A local bank account is not required by the CBI program per the program rules, but many investors open one in practice for property or personal banking; once you do, you must track balances for FBAR/FATCA. Non‑willful FBAR penalties start around 10,000 USD per year, so ignoring a small Grenadian account can be costly.

US citizens using Grenadian citizenship should plan to coordinate three layers: US worldwide taxation, Grenada’s territorial system on Grenadian‑source income, and treaty interaction on any overlapping income. A US CPA experienced in expat returns (Form 2555, Form 1116, FBAR, Form 8938) plus a Grenadian tax advisor for residency status, local filing thresholds, and business or property income is the right team. The 1,500–3,000 USD spent in year one on aligned advice is often recouped through optimized FEIE/FTC elections, clean reporting, and avoiding five‑figure FBAR or accuracy‑related penalties.

Any nationality can apply for Grenada Citizenship by Investment in principle; nationality restrictions are listed as “all” in the program rules, meaning the program is not limited to specific countries or regions. In practice, applicants from sanctioned or high‑risk jurisdictions such as Iran, North Korea, Syria, and sometimes Russia or Cuba can encounter banking de‑risking, enhanced due‑diligence, and a higher probability of rejection despite theoretical eligibility. Before assembling a full document package or wiring 235000 USD, confirm current eligibility and any informal restrictions directly with the Investment Migration Agency (IMA) Grenada, which administers the program and publishes official guidance.