Grenada property tax is an annual charge on the market value of your land and any buildings on it, set by classification: residential owners pay 0.2% on land and 0.3% on buildings, commercial land is taxed at 0.5%, hotel buildings at just 0.02%, and actively farmed agricultural land at 0%. Owner-occupiers get the first EC $100,000 of building value deducted before the tax is calculated. Pay by June 30 to earn a 5% discount; miss August 31 and a 20% penalty plus 1.5% monthly interest kick in.
Rates by Property Type
The Property Tax Act, Chapter 257B, lets the government set rates annually for each classification, with the Chief Valuation Officer setting the market value that the rate applies to. The current schedule:1Ministry of Finance Grenada. Property Tax
- Residential: 0.2% on land, 0.3% on buildings.
- Commercial: 0.5% on land, 0.3% on buildings.
- Industrial: 0.3% on land, 0.2% on buildings.
- Hotel: 0.3% on land, 0.02% on buildings.
- Agricultural (active): 0% on both.
- Agricultural (idle): 0.2% on land, 0% on buildings.
The idle-versus-active distinction matters. Productive farmland pays nothing, but agricultural land left unused is taxed at 0.2% on the land. Hotels get notably light treatment on buildings at 0.02%, reflecting the country’s push for tourism investment. Because rates can move by statutory order each year, confirm the current figures with the Inland Revenue Division before you plan around them.
Homestead and Agricultural Relief
If you live in the home you own, EC $100,000 is deducted from the building value before the 0.3% rate is applied. Only one property per owner qualifies, so vacation homes, rentals, and investment properties are not eligible.2Grenada Inland Revenue Division. Property Tax
The exemption reduces building value only. Your land is taxed at its full assessed value even on your primary residence. On a home with a building value of EC $350,000, tax at 0.3% applies to EC $250,000 after the deduction.
Actively farmed land and any structures on it are fully exempt, but the IRD requires evidence that the land is genuinely in production. Once cultivation stops, the parcel falls into the Agricultural (Idle) band and the 0.2% land rate applies.2Grenada Inland Revenue Division. Property Tax
When to Pay: The Discount Date and the Deadline
Two dates drive the payment calendar. Pay on or before June 30 and you receive a 5% discount on the bill. After that, the discount is gone but no penalty has started yet. The final deadline is August 31.3Ministry of Finance Grenada. Property Tax Can Now Be Paid Via Pay.gov.gd
Miss August 31 and the bill jumps immediately. A one-time 20% penalty is added to the unpaid balance, and interest of 1.5% per month begins to accrue on the outstanding amount.3Ministry of Finance Grenada. Property Tax Can Now Be Paid Via Pay.gov.gd On a EC $2,000 bill, the 20% penalty alone adds EC $400 the day after the deadline, and another EC $36 accrues each month it remains unpaid.
Long-running arrears can lead to a lien on the property, and prolonged non-payment can end in a sale to recover the debt. Paying by June 30 is the cleanest option: you save 5% and never risk the compounding side of the calendar.
How and Where to Pay
You can pay in person at the IRD’s main office on Young Street in St. George’s, or at a District Revenue Office. Offices operate in Sauteurs (St. Patrick), Grenville (St. Andrew), Gouyave (St. John), Victoria (St. Mark), St. David, and Carriacou.2Grenada Inland Revenue Division. Property Tax Each office issues an official receipt as proof of payment for the year.
Online payment runs through pay.gov.gd, which handles property tax alongside motor vehicle and driver’s license fees. Card payments are accepted and confirmation is digital, which makes the portal the practical choice for owners living abroad.4Ministry of Finance Grenada. Taxpayers Encouraged to File and Pay Their Taxes on Time and Online
The IRD identifies your account by your Tax Identification Number (TIN) and your Property Assessment Number. The TIN appears on remittance forms and IRD statements; the Property Assessment Number appears on valuation notices and prior bills.5Organisation for Economic Co-operation and Development. Grenada Information on Tax Identification Numbers Have both ready before you start a payment.
Transfer Tax When You Buy or Sell
A one-time property transfer tax applies at sale, separate from the annual bill, and the rates depend on citizenship:6Grenada Inland Revenue Division. Property Transfer Tax
- Grenadian citizen selling land: vendor pays 5% of market value. Citizen buyers owe nothing.
- Non-citizen selling land: vendor pays 15% of the consideration or market value.
- Non-citizen buying land: purchaser pays 10% of the consideration or market value.
- Non-citizen transferring property other than land: both vendor and purchaser pay 10% of market value each.
Gifts by deed are taxed only on value above EC $150,000, so smaller gifts pass through free. All other transfers are taxed on value above EC $20,000.6Grenada Inland Revenue Division. Property Transfer Tax On a EC $1,000,000 purchase, a non-citizen buyer owes EC $100,000 at closing, and if the seller is also a non-citizen, that side owes EC $150,000.
Extra Steps for Non-Citizen Buyers
Foreigners cannot simply buy Grenadian real estate. The Aliens (Land-Holding Regulation) Act, Chapter 13, requires a license from the Minister for each specific parcel. The license is only valid once all fees are paid and it is registered in the Deeds and Land Registry.7Grenada Parliament. Aliens Land-Holding Regulation Act, Chapter 13 Between the license fee, the 10% purchaser transfer tax, and legal work, a non-citizen’s total cost sits well above the listing price.
If You’re a U.S. Owner
American citizens and residents who own property in Grenada carry U.S. reporting obligations on top of local tax.
Rental income from a Grenadian property is reported on Schedule E of Form 1040, the same form used for domestic rentals. If you hold the property through a foreign corporation or partnership, Forms 5471 or 8865 may also apply.
Grenada property tax does not qualify for the U.S. Foreign Tax Credit, which is limited to foreign income taxes. It may instead be claimed as an itemized deduction on Schedule A.8Internal Revenue Service. Am I Eligible to Claim the Foreign Tax Credit
Real estate held directly in your own name is not a specified foreign financial asset, so it does not by itself trigger Form 8938. But an interest in a foreign entity that holds the property is reportable once your total foreign financial assets exceed the threshold.9Internal Revenue Service. Basic Questions and Answers on Form 8938 A foreign bank account used for rent or expenses that hits $10,000 at any point in the year triggers an FBAR filing.