Tax Haven Grenada

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Tax haven Grenada is a developing offshore financial centre in the Eastern Caribbean region. As a tax haven, Grenada has faced several challenges but over time has implemented measures that would strengthen the regulatory framework of Grenada as a tax haven.

Tax haven Grenada is a member of the Eastern Caribbean Currency Unit (ECCU) which consists of credit unions, national development foundations, offshore banks, building and loan associations, domestic banks, insurance companies and development finance institutions. As such, Grenada tax haven is a participating member of the financial and economic initiatives taken by the ECCU and a recipient of the various laws passed on the regional level.

Brief Country Overview

Tax haven Grenada is an English speaking Caribbean island with a population of approximately 100, 000. Tax haven Grenada is formerly known as Grenada and the Grenadines; the Grenadines being a collection of islands offshore the coast of Grenada that are known for their beautiful white and pink sand beaches. Tax haven Grenadine islands are Carriacou, Diamond Island, Saline Island, Petit Martinique, Large Island, Caille Island, Frigate Island and Ronde Island. The capital of tax haven Grenada is Georgetown.

Tax haven Grenada was settled by Spanish, French and the English and was the home of Carib Indians who named the island Camahogne. When the French took over, they named the island French named it La Grenade, which became a prosperous sugar exporter. The Carib Indians who inhabited tax haven Grenada were as aggressive as those found in nearby countries and put up fierce resistance against the domination of their territory by European settlers. In 1763, tax haven Grenada was passed to the British Crown by the Treaty of Paris.

Nicknamed “isle of Spice”, second to Indonesia, tax haven Grenada is well known as the second largest exporter of nutmeg in the world. Spices are a large part of tax haven Grenada’s economy and culture because of the diverse and numerous types of spices used and grown all over the island.

Grenada Fiscal Advantages and Incentives

As a tax haven Grenada offers numerous possibilities for reducing taxes through the incorporation of offshore companies and corporate structures which are exempted from local taxes and have the power to protect assets. Tax haven Grenada is recognised as a regulated offshore jurisdiction which adheres to international standards which are established for carrying out offshore financial services.

  • 20 years tax exemption for offshore companies
  • Legal system based on Common law
  • Convenient time zone
  • No stamp duties
  • No estate and inheritance tax
  • No tax on capital gains
  • No withholding tax
  • No transfer tax
  • No business levy and alien-land holding tax
  • Special access to international markets
  • Investor friendly business environment

Grenada Legislative Framework

As a former colony of Britain, the legal system in tax haven Grenada is based on Common Law. Nevertheless, a framework of statutory laws has been established in order to meet the specific needs of the country in the areas of finance, social policy, fiscal regime and politics, to name a few. In developing its offshore services and products, tax haven Grenada has also built the relevant body of statutes for the conduct of offshore activities from with Grenada as a tax haven. This is to ensure that offshore service providers offer services in compliance with the established domestic rules and regulations as well international standards. The relevant Acts governing international financial activities in tax haven Grenada include:

  • International Financial Services (Miscellaneous Amendments) Act 2002
  • International Companies Act (as amended 2002)
  • Offshore Banking Act (as amended 2003)
  • International Insurance Act (as amended 2002)
  • International Trust Act (1996)
  • Company Management Act (1996)

Grenada Offshore Financial Services

Tax haven Grenada has a progressive financial sector which allows for the formation and registration of offshore business companies and entities. Offshore services in tax haven Grenada are provide by trained and professional including lawyers, accountants and insurers. Offering a wide variety of regulated offshore entities has been crucial in developing tax haven Grenada as a competitive tax haven and offshore jurisdiction. Offshore services provided in tax haven Grenada include the following:

  • International trusts (see entities)
  • International insurance company formation and services (see entities)
  • Offshore Banking (see entities)
  • International Business Company formation (see entities)
  • Mutual funds formation

Grenada International Financial Services Authority (GIFSA)

The Grenada International Financial Services Authority is the organisation responsible for monitoring and regulating offshore and offshore financial companies.

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