Grenada taxes domestic companies (incorporated or registered as an external business in Grenada) on worldwide income, while non-resident companies are generally exempt on foreign-sourced income but taxed on Grenada-source income. Individuals are taxed only on Grenada-source income rather than worldwide income, and Grenada levies no capital gains, inheritance, or wealth tax. The system is administered by Grenada's Inland Revenue Division.
The tax year generally follows the company's own accounting period for corporate filers, with individuals assessed on the standard fiscal year; specific filing deadlines should be confirmed directly with the Inland Revenue Division given source variation on Grenada's exact corporate tax rate and administrative details.
28% on net profits for resident and non-resident companies (non-residents taxed on Grenada-source profit only), per multiple current 2026-dated sources (TaxAtlas, North Immigration); an older 25% figure appears in some secondary sources but reflects an outdated rate.
Two brackets: 10% on the first EC$24,000 of taxable income, 28% on income above that threshold.
15% standard VAT.
Individual tax residency is generally established by residing in Grenada for a minimum of 183 days within the fiscal year, per available sources. Grenada does not tax worldwide income, capital gains, inheritance, or wealth for individuals - residents are taxed on income earned within Grenada, and non-residents on Grenada-source income only. Domestic companies (incorporated or registered as an external business in Grenada) pay corporate tax on global income; non-resident companies are generally exempt on foreign-sourced income but taxed on Grenada-source income, subject to a 15% withholding tax on payments including dividends, interest, and royalties to non-residents (no withholding tax applies to payments made to Grenada citizens or residents).
A non-resident company is brought within Grenada's corporate tax net where it carries on business through a permanent establishment in Grenada, taxed on Grenada-source profits; payments to non-residents without a qualifying local presence, including dividends, interest, and royalties, are instead subject to a 15% withholding tax (no withholding applies to payments to Grenada citizens or residents).
Grenada does not enforce Controlled Foreign Corporation regulations, allowing tax residents to own offshore companies without CFC-style attribution of the foreign entity's income.
No statutory thin capitalization ratio or interest-limitation rule was identified in available sources for Grenada.
Grenada classifies entities according to its own domestic company and tax law rather than offering an elective check-the-box system, and no anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified, consistent with Grenada having no Controlled Foreign Corporation regulations at all.
No domestic FBAR-equivalent regime requires Grenada residents to separately disclose foreign financial accounts. Grenada shares tax information with other countries under CRS and signed a FATCA agreement with the United States in 2016. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Grenada's own rules.
No general domestic participation exemption regime for dividends or capital gains from a qualifying subsidiary was identified in Grenada tax law. Grenada instead relies on its residence-based structure (no tax on individuals' worldwide income, no capital gains tax) and its 15% withholding tax on outbound payments to non-residents, rather than a distinct minimum-ownership participation exemption.
Grenada does not offer a general unilateral foreign tax credit; foreign tax relief is generally available only where the counterparty jurisdiction has a tax agreement with Grenada, or where the tax was paid in a British Commonwealth country that provides reciprocal relief for Grenadian tax residents - a narrower, Commonwealth-specific unilateral relief provision common to many former British colonies' tax codes. Relief from double taxation otherwise depends primarily on Grenada's limited treaty network: the multilateral CARICOM Double Taxation Agreement and a bilateral treaty with the United Kingdom; Grenada has no double tax treaty with the United States.
Grenada maintains a limited treaty network of 3 double taxation agreements per TaxAtlas: the multilateral CARICOM Double Taxation Agreement (Grenada ratified March 1, 1996, per the CARICOM Secretariat's own treaty records, alongside Antigua, Belize, Dominica, Guyana, Jamaica, Saint Kitts/Nevis, Saint Lucia, Saint Vincent, and Trinidad and Tobago) plus a separate bilateral treaty with the United Kingdom. Grenada does not have a double tax treaty with the United States - income earned in Grenada by a US taxpayer can be taxed in full by both countries, since no bilateral relief mechanism exists between them. Grenada is reported to be actively negotiating additional treaties to expand its network beyond these two relationships.