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FDI in Figures

According to UNCTAD's 2022 World Investment Report, FDI inflows to Grenada decreased to USD 144 million in 2021, from 149 million one year earlier, and well below the pre-pandemic level of 2019 (USD 199 million). In 2021, the total stock FDI stood at USD 1.8 billion, representing around 165.1% of the country’s GDP. Tourism attracts the vast majority of FDI, followed by the construction sector. Proceeds from the Citizenship-by-Investment (CBI) programme are attracting more and more investments, although regulatory measures have also increased following a failed aquaculture project. The United States is the largest source of FDI into Grenada, followed by the United Kingdom, Canada, and China.

In order to further attract investment, the government made legislative revisions to value-added tax, property transfer tax, investment, excise tax, customs, and bankruptcy and insolvency acts. The island, whose main advantage is its large tourism potential, offers the possibility to set up a business within a short time frame (31 days) and tax incentives to investors. Equal treatment to national and foreign investors, and there are no limits on foreign ownership or control. However, foreign investors employed in Grenada are required to obtain a work permit, renewable annually. Additionally, political stability and good-quality infrastructure make Grenada a strategic destination for investment. Nevertheless, the country is considered a non-cooperating country in the fight against tax evasion. Even if Grenada improved the resolution of insolvency, stamp tax rates have increased and slightly deteriorated the business climate in Grenada. The government of Grenada identified five priority sectors for investment: tourism and hospitality services, education and health services, information and communication technology, agribusiness, and energy development; with the Grenada Investment Development Corporation (GIDC) as the official investment agency (it revies the submitted investment proposals and advises on the requirements and processes for doing business in Grenada). The tourism sector attracts the greatest amount of foreign investment, but the recent discovery of natural gas offshore could make the energy sector the biggest receiver of investment in the coming years. The country signed up for China's Belt and Road funding, and China submitted a development plan for Grenada, which includes the construction of large projects, including a highway connecting major towns and a railway encircling it. Overall, Grenada ranks 51th out of 180 countries in the latest Corruption Perception Index.


Country Comparison For the Protection of Investors

  Grenada Latin America & Caribbean United States Germany
Index of Transaction Transparency* 4.0 4.1 7.0 5.0
Index of Manager’s Responsibility** 8.0 5.2 9.0 5.0
Index of Shareholders’ Power*** 8.0 6.7 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 136140160
FDI Stock (million USD) 1,681.71,829.91,989.8
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 8920

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value Added Tax (VAT)
15% (standard rate).
A reduced rate of 10% applies to the tourism sector (hotel accommodation and dive operations) and a 20% rate applies to the telecommunications sector.
Zero-rated items include supplies or imports of food for human consumption (i.e. flour, sugar, rice, milk, infant preparations); supply of electricity provided to residential premises for private or domestic use; supply of stamps by the Grenada Postal Corporation; supply of gasoline, diesel, LPG, or Kerosene, if it is subject to tax under the Petrol Tax Act 2005.
Exempt items include certain financial services; the supply of vacant land or agricultural land; the sale of residential real property; certain education services; certain medical services; the supply of goods or services by an approved non-profit body; etc.
Click here for more information.
Company Tax
Withholding Taxes
Dividends: 0, Interests: 15%, Royalties: 15%.
Bilateral Agreement
Grenada and Spain are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers
6% (capped at XCD 5,000 per month).
Other Domestic Resources
Inland Revenue Division
Overview of Grenada's tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Personal Income tax
Up to XCD 24,000 10%
Above XCD 24,000 28%

Country Comparison For Corporate Taxation

  Grenada Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 42.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 140.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 47.8 46.8 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Grenada
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Grenada.
Useful Resources
Grenada Industrial Development Corporation
Contact the Spanish Embassy.
Contact the Embassy in Spain.
Grenada Trade Portal

Business Setup Procedures

Setting Up a Company Grenada Latin America & Caribbean
Procedures (number) 6.00 8.00
Time (days) 12.00 25.22

Source: Doing Business.


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Latest Update: November 2023

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