Financial Planning in Grenada: CBI Programme, E-2 Visa Treaty with the USA and Caribbean Tax Benefits

Grenada — a three-island nation of approximately 113,000 people in the southern Caribbean — has a modest economy historically based on nutmeg, cocoa, and tourism. Its citizenship-by-investment (CBI) programme, launched in 2013, has attracted increasing attention due to a feature no other Caribbean CBI programme can claim: Grenada has a bilateral investment treaty (BIT) with the United States that includes the E-2 Treaty Investor visa category.

This means a Grenadian citizen can apply to the US embassy for an E-2 visa, allowing them to enter the United States to manage a qualifying investment business. For nationals of countries without an E-2 treaty with the US — including China, India, Russia, South Korea, and many others — this is a significant differentiator and the primary reason Grenada's CBI programme commands a premium in certain client profiles.

Personal Taxation

Grenada's domestic tax system is straightforward for residents:

• Income tax: applies to Grenada-source income, with a top rate of 28% for residents on locally earned income.
• Foreign-source income: generally not taxable in Grenada for residents. Dividend income, interest, capital gains, and other investment returns arising outside Grenada are not subject to Grenadian tax.
• No capital gains tax.
• No inheritance or estate tax.
• No wealth tax.
• VAT at 15% on most goods and services.

For a genuine Grenadian resident with a portfolio of international assets generating investment income abroad, the effective personal tax rate on that income is zero. The practical significance is the same as many Caribbean zero-tax or territorial-tax jurisdictions: foreign passive income is untaxed.

There is no formal CRS-exempt or private regime for HNW residents. Grenada is a standard CRS participant and exchanges financial account information.

The Grenada Citizenship by Investment Programme

National Transformation Fund (NTF) — Non-Refundable Contribution

• USD 235,000 for a single applicant.
• USD 235,000 for a main applicant and spouse.
• Additional family members (children under 30, parents aged 55+, siblings) can be included for supplementary fees ranging from USD 25,000 to USD 50,000 each.
• Non-refundable donation to the NTF — no return on investment.

Real Estate Investment

• Minimum investment of USD 270,000 in government-approved real estate (typically luxury resort or hotel developments) following the 2024 Caribbean CBI harmonisation, which raised the floor from the previous USD 220,000 level effective 1 July 2024.
• Minimum holding period: five years before resale.
• Some developers offer buy-back arrangements — verify these with independent legal advice, as they are contractual commitments of the developer, not government guarantees.
• Note that under the harmonised rules the minimum amounts must be paid in full, without rebates, cashback or other discounting — always verify the current government-approved project list.

Processing and Timeline

• Standard processing: approximately four to six months from complete application submission.
• Grenada has introduced an expedited processing track, though this adds cost.

Passport Visa-Free Access

A Grenada passport provides visa-free or visa-on-arrival access to approximately 145 countries as of 2026, including the Schengen Area, the United Kingdom, and much of the Commonwealth.

Dual nationality is permitted under Grenadian law; applicants should confirm their existing nationality's position on dual citizenship.

The E-2 Visa Pathway — Grenada's Unique Differentiator

What is the E-2 Treaty Investor Visa?

The E-2 is a US non-immigrant visa category for nationals of countries that have a qualifying BIT or treaty of friendship with the United States. It allows the holder to enter and remain in the US to develop and direct a qualifying investment in a US business.

Requirements for an E-2 visa (general; US consular requirements should always be verified independently):

• The applicant must be a national of a qualifying E-2 treaty country — Grenada is one.
• A substantial investment must have been made in a bona fide US enterprise. "Substantial" is assessed proportionally against the total cost of the enterprise; a USD 100,000–300,000 investment in a small business is typically considered substantial for that scale of business.
• The investment must be at risk (not simply deposited in a US bank account).
• The applicant must be coming to develop and direct the enterprise — meaning they must have at least 50% ownership or operational control.
• The business must generate more than a marginal return — it must do more than provide a living for the investor and their family.

The E-2 is not a path to a green card directly (unlike EB-5), but it can be renewed indefinitely as long as the investment continues to meet requirements, and many E-2 holders live and work in the US for many years.

Why This Matters for Non-E-2-Treaty Nationals

Nationals of countries such as China, India, Russia, Brazil, South Korea, and others that do not have E-2 treaties with the United States cannot apply for an E-2 visa on the strength of their original passport — regardless of wealth. By naturalising in Grenada through the CBI programme, they acquire Grenadian citizenship and can then apply for an E-2 visa on the Grenada treaty.

The total cost of the Grenada CBI + E-2 investment may be substantially less than the EB-5 immigrant investor pathway (minimum USD 800,000+ in a targeted employment area as of 2026) and avoids the EB-5's multi-year wait times. The E-2 is also more flexible — the investment can be in virtually any legitimate business sector.

Important caveats:

• The E-2 is a non-immigrant visa. It does not confer permanent residence or a green card. Applicants with intentions to reside permanently in the US should explore EB-5 or other immigrant pathways.
• Naturalisation in Grenada for the purpose of obtaining an E-2 is a legitimate, well-established use of the programme, but the US consulate will scrutinise the application. A properly structured E-2 application, with genuine investment, genuine management intention, and appropriate documentation, is necessary.
• E-2 processing is subject to US State Department processing times and policy, which can vary. US immigration counsel should always be engaged.
• US citizens and green card holders: US persons are taxable on worldwide income regardless of Grenada citizenship or residence.

Property and Real Estate

The Grenada property market, anchored around St George's (the capital) and the Grand Anse beach corridor, has grown in sophistication with CBI-driven hotel and resort development. Notable developments include the Silversands Grenada resort (Camerhogne Park area) and several Four-Star and Five-Star hotel projects.

Foreigners can purchase property freehold in Grenada. An Alien Land Holding Licence is required for non-CARICOM nationals but is routinely granted. Stamp duty on property transfers is approximately 5% (buyer and seller contributions may vary by transaction structure).

Banking

Grenada's domestic banking system includes branches of regional Caribbean banks (Republic Bank, FirstCaribbean) and is functional but limited for sophisticated private banking. Most HNW residents maintain international banking relationships elsewhere. Grenada is CRS-compliant and FATCA-covered by intergovernmental agreement.

Practical Living

• Climate: pleasant tropical Caribbean climate; Grenada sits below the main hurricane belt, though it is not immune to storm risk.
• Healthcare: basic local provision; serious conditions require medical evacuation.
• Education: some international schools, primarily at primary and secondary levels; the American offshore St George's University Medical School is prominent.
• Lifestyle: relatively quiet and traditional by Caribbean standards, with strong community ties and a growing tourism and hospitality sector.

Grenada does not require physical residence in order to maintain citizenship — naturalised citizens can live wherever they choose.

Key Compliance Points

• CRS: Grenada participates fully in automatic information exchange.
• Home jurisdiction tax: citizenship and residence structure do not affect obligations in your country of habitual residence.
• E-2 investment quality: the US investment must be genuine, at risk, and capable of generating returns beyond mere subsistence.
• Grenadian income tax: locally sourced income is taxable; foreign-source income is generally not.

This guide reflects the position as understood in mid-2026 and should not be construed as US immigration, Grenadian tax, or investment advice. Seek qualified advisers in both jurisdictions before taking any steps.

How Global Investments Can Help

Global Investments advises HNW clients on citizenship planning, Caribbean residency, and US immigration strategy. If you are considering Grenada as a route to the E-2 Treaty Investor visa, as a second citizenship for travel and optionality, or as a genuine Caribbean residence, our team can coordinate an objective, holistic assessment — working with US immigration counsel, Grenada CBI agents, and local legal professionals.

Contact our team for a confidential consultation.