Grenada citizenship: benefits and disadvantages
Cosmopolitans seek Grenada citizenship for various motives. In the following discussion, we will explore the various advantages of obtaining Grenada citizenship, along with some potential drawbacks for investors. Now, let’s explore the core information of obtaining this citizenship status.
10 benefits of Grenada citizenship
1. Grenada citizenship offers visa-free travel to more than 140 countries, including popular destinations among tourists and business travellers.
Without a doubt, this is one of the major pros of Grenada citizenship. Among the visa-free destinations for Grenadian passport holders are the United Kingdom and countries in the Schengen Area. Grenadians can also enjoy visa-free access to China for up to 30 days per year. They can also travel to Singapore for up to 30 days and to Hong Kong for up to 90 days without a visa.
2. Eligibility for a business visa to the USA, specifically the E-2 US visa. This visa is exclusively available to citizens of countries with a treaty of commerce and navigation with the United States.
E-2 visa holders can reside and conduct business within the United States, and their spouse and children can also live, study, and work in the country.
While there is no defined minimum investment threshold, the legislation requires investors to deposit a substantial sum into their US-based company. Typically, an investment of $200,000 is sufficient. The visa processing time ranges from 2 to 5 months, and Grenadian citizens are granted a five-year visa, renewable upon expiration.
If the investor’s home country lacks a treaty of commerce and navigation with the US, the only option is the EB-5 visa. It requires a minimum investment of $800,000 and has a processing time of 3–4 years.
3. Grenadians are granted 10-year Visitor Visas to the United States, specifically the B-1/B-2 visa. It permits individuals to stay in the US for six months per year.
4. Tax optimisation is a significant advantage in Grenada, as the country imposes no taxes on interest, royalties, capital gains, or inheritance. The income tax in Grenada reaches a maximum rate of 28% and applies only to income earned within Grenada. Real estate taxes vary from 0 to 0.5%.
Individuals who reside in Grenada for most of the year are considered tax residents and exempt from withholding tax on dividends, royalties, and interest earned both within and abroad. On the other hand, non-residents are subject to a 15% tax on dividends.
Regarding corporate tax, Grenada imposes a rate of 28%. Companies registered in Grenada must pay tax on their entire global income, while non-resident companies are taxed only on income earned within Grenada.
5. Grenadian citizens can provide their children with a high-quality education abroad, particularly in the United Kingdom and the United States, under favourable conditions, owing to Grenada’s strong historical and economic connections with these nations.
Prominent Grenadian universities collaborate closely with institutions in the US and UK, exemplified by the St George’s University. Additionally, students partake in a 16-week internship program within hospitals located in the US and UK. The university’s diploma holds recognition in 47 countries, including the United States, the United Kingdom, and Germany.
6. Grenadian holders of a second passport enjoy the privilege of opening accounts with banks in Europe, the United States, or within Grenada itself.
Grenadian citizens typically encounter few or no obstacles when opening a bank account abroad. This stands in contrast to citizens from many other countries who frequently face significant hurdles and even rejections when attempting to open accounts in the European Union or the United States due to rigorous scrutiny.
Maintaining an account with a European or American bank provides several advantages, including keeping savings in a stable currency and benefit from reduced fees for international transfers. Additionally, it expedites foreign currency settlements with business associates.
7. Investors can obtain second passports for the entire family. The application for Grenada citizenship can encompass family members and relatives, provided that the financial dependence criteria are met. This includes the main applicant’s children, adult siblings, parents, and spouses.
8. Acquiring a second passport through the Grenada citizenship by investment program is swift. Investors can obtain passports within months, with the standard application processing time typically ranging from four to six months.
9. The Grenada citizenship program offers relatively low costs and the potential for recovering the initial investment. The minimum contribution is $150,000, whereas investments in EU residence permits typically start at €250,000. It’s worth noting that a residence permit doesn’t grant the same level of travel freedom as full citizenship.
In the Grenada citizenship program, there is a Due Diligence fee of $5,000 for each family member aged 17 and above, in addition to administrative and passport fees.
10. Investing in Grenada can be financially rewarding. By purchasing apartments, villas, or shares in government-approved projects valued at a minimum of $220,000, investors have the potential to generate a profit.
As long as the property remains under the investor’s ownership, they can earn annual rental income ranging from 2 to 5%. Besides, the initial investment can be reclaimed after five years.
Disadvantages of Grenada citizenship
Owning a Grenada passport grants cosmopolitans the freedom to travel worldwide, but it also carries certain disadvantages, rendering it unsuitable for specific purposes.
Regarding staying within the Schengen Area, a Grenada passport holder is permitted 90 out of 180 days, similar to a visa. The advantage lies in that citizenship is granted for life, with the visa being re-approved upon renewal.
However, Grenada citizenship is not ideal for investors seeking to relocate to Europe or secure a “back pocket residence” for emergencies. For these purposes, consideration should be given to residence permits in Portugal, Greece, Spain, or Malta.
Another drawback of the Grenada passport is the limited time one can spend in the UK. Grenadian citizens can visit the UK as tourists for up to six consecutive months, but for activities like studying, working, or marriage, a visa is required.
How to get a Grenada passport
Licensed agents, a prerequisite for the program, strictly facilitate obtaining a Grenada passport by investment. This process involves several stages and typically spans about 4 to 6 months.
Stage 1: Preliminary Due Diligence. In this initial phase, the licensed agent conducts preliminary Due Diligence, apprising the investor of potential emerging risks. This check is completed within one working day.
Stage 2: Document Collection and Submission. The licensed agent’s legal team assembles all the necessary documents and submits them to the Grenada citizenship unit.
The investor also covers the state fee and Due Diligence expenses at this stage. Document preparation typically takes up to 4 weeks, and the application processing period ranges from 3 to 6 months.
Besides, all applicants over 17 pass a mandatory interview online. The interview fee is $1,000.
Stage 3: Fulfilment of Investment Conditions. Once the government approves the investor’s application, they transfer the agreed-upon investment amount. The agent conveys the confirmation via email, and the investor can transfer it from their account. Applicants have a 30-day window to either acquire real estate or contribute to the state fund.
Stage 4: Passport Issuance. Following the transfer of the investment to the Grenada citizenship unit, the naturalisation certificate is issued within approximately 4 weeks, and a passport is granted based on it. The documents are then sent to the address specified by the investor.
Notably, all stages of the citizenship by investment application process can be conducted remotely, eliminating the necessity for the investor’s physical presence in Grenada.
Visit immigrantinvest.com for detailed information about it and other investment citizenship programs, or book a meeting with Immigrant Invest lawyers who can help answer tricky questions.
