CBI Spotlight: Grenada
The Basics on Grenada's Citizenship by Investment Program.
Note: For information purposes only. Not intended as personalized advice of any sort. Please consult a qualified professional.
We’ve written before about how you can have a second passport and citizenship in another country, for a price. As Andrew Henderson at Nomad Capitalist writes, "Certain governments are willing to grant you citizenship and a passport in as little as three months in exchange for a sizable investment or donation in their country."
Simon Black at Sovereign Man describes Citizenship by Investment as "the ultimate insurance policy… [ensuring] that, no matter what, you always have a place to go - to live,work, do business, retire, and in some cases, even seek refuge. That way, when things go bad, you can take yourself and your family out of harm’s way… [and] the more options you have for you and your family, the more freedom you will experience."
Today, we’re going to take a look at one specific country that is providing an impressive Citizenship by Investment program: Grenada.
Grenada is an island nation in the Caribbean, located between St. Vincent and the Grenadines and Barbados to the North, and Venezuela and Trinidad and Tobago to the South. It’s about 3.5 hours by direct flight from Miami International in Florida.
According to Jovana Vojinovic at Nomad Capitalist, it's "known as the 'Island of Spice,'" being "the second-largest exporter of nutmeg in the world." It has "some of the most immaculate natural environments in the world," with "divers, sailors, newlyweds, and luxury-seekers from all around the world [traveling] to enjoy Grenada’s sunshine year-round. It also has a status as an offshore haven, where high-net-worth investors have not hesitated to invest."
Speaking of year-round sunshine, it is encouraging to note that Grenada's great weather "doesn’t just mean balmy temperatures of 80 degrees Fahrenheit and above, year-round. It also means that Grenada sits just outside of the hurricane belt - for the most part, tropical storms pass it by."
Grenada's government has enjoyed over 35 years of continued stability, thanks to a U.S-led military invasion and overthrow of the communist regime in 1983. Since that time, Vojinovic writes, "major improvements to the country’s infrastructure have taken place as it grew in leaps and bounds," and "nothing notable has happened in the governance or the politics of the country ever since."
Vojinovic describes Grenada's economy as "small, but robust," with an "overreliance on just a few industries," mainly agriculture exports and tourism. Grenada's tourism and service industries have seen tremendous growth, due in large part to foreign investors coming for the beautiful beaches, and staying to take advantage of the country's Citizenship by Investment program. For example, in 2018 "Grenada granted 851 passports... and raised $54 million," a 21% and 26% increase from 2017, respectively. Then in 2019, "the Grenadian government raised $61 million," a year-over-year increase of 13%, and "to this date, over 2,100 people have gotten their Grenadian passports by investment."
So what makes Grenada’s Citizenship by Investment program stand out from the rest? The team at Sovereign Man answers:
"Grenada is the only Caribbean country offering access to the US as an E2 Treaty Agreement signatory. The E2 Treaty is a bilateral agreement that affords signatory countries certain travel rights and privileges. While the associated E2 Visa program does not lead to a green card and eventual citizenship, it allows applicants who make a significant, at-risk capital investment in the US to stay there long term – as long as the investment is maintained. Not surprisingly, this benefit has led to the program gaining massive popularity among Chinese applicants seeking to make the move to America."
Speaking of the Chinese, Grenada is "the only Caribbean CBI country that offers visa-free access to two of the hardest nuts to crack - China and Russia," making it one of the most powerful passports in the world. On top of that, you get "visa-free travel to 123 countries, including the UK and the EU," as well as Singapore, South Korea, Hong Kong, Malaysia, and the Philippines.
Other benefits include:
Affordability: "While the Grenada CBI is not the most affordable second passport option for single applicants, it offers excellent value for families of 4 or more, in particular."
Family Eligibility: You can "include your spouse, children, siblings, parents and even grandparents in your Grenadian citizenship application. What’s more, your second citizenship is valid for life and can be passed on to your immediate descendants."
No Minimum Stay: "The program has no minimum stay or residency requirements. In fact, you don’t even need to visit Grenada to obtain your second citizenship and passport – unless you want to, of course..."
Attractive Taxation: "Grenada has a territorial taxation system, so you won’t be taxed on any income earned outside the country. Only your income originating in the country will be taxed by Grenada. Moreover, the country charges no income, wealth or inheritance taxes, making it an excellent destination for those seeking to optimize their global tax obligations."
Streamlined Application Process: "Grenadian investment citizenship and a second passport can typically be obtained in around six months, thanks to a highly streamlined, largely digitized and predictable application process."
Dual Citizenship: "Grenada recognizes dual citizenship, which means that you won’t need to give up your native citizenship or any of the benefits stemming from it to obtain Grenadian citizenship and a second passport."
How much does it cost, then, to acquire Citizenship by Investment in Grenada? You have two options, according to Henley & Partners:
Make a Donation: Grenada's Citizenship by Investment program requires applicants "to make a significant economic contribution to the country," through their National Transformation Fund (NTF). Single applicants must donate a minimum of USD $150,000, while a family of up to four members have a USD $200,000 minimum, and USD $25,000 minimum per family member over the initial four. This makes it a greater value proposition to add on family members. According to Nomad Capitalist, "parents and grandparents older than 55 years can be added under the main applicant," and :do not have to live with the applicant." Also, "unmarried siblings older than 18 years of age of the main applicant and the spouse can be added," and "dependent children [up to age 30 can be] added to an application," and they don't "have to be enrolled in college or university." In addition, "children born within 12 months of one obtaining the citizenship will automatically be added."
Invest in Real Estate: Alternatively, you can invest "as a co-owner [in] a government-approved real estate project," as long as it meets the minimum amount of either USD $220,000 or USD $350,000. The USD $350,000 minimum applies to single applicants, married couples, or families of up to four members. However, Nomad Capitalist reports that "if you’re investing with a partner, your minimum investment drops to USD $220,000," for a total investment between two partners of USD $440,000. The investment in real estate must be held for five years, in order to receive Grenadian citizenship.
Should you opt for a real estate investment, you must also pay a handful of fees:
Government Administration Fees: USD $50,000 for up to a family of four, USD $25,000 for each applicant over the initial four.
Application Fees: USD $1,500 for a single applicant, USD $3,000 for married couples, USD $6,000 for up to a family of four, and USD $1,500 for each additional applicant over the initial four.
Processing Fees: USD $1,500 for a single applicant, USD $3,000 for married couples. For up to a family of four, USD $1,500 per person over the age of 18, and USD $500 per person under the age of 18. For each additional applicant over the initial four, USD $1,500 per person over the age of 18, and USD $500 per person under the age of 18.
Due Diligence Fees: USD $5,000 for a single applicant, and USD $10,000 for married couples. For a family of up to four members, children ages 17–25 are $5,000 per person, and children under 16 are free.
If Citizenship by Investment in Grenada sounds like the right choice for you, first make sure you are eligible before applying. You must be at least 18 years old, have no criminal record, including no convictions that resulted in at least six months imprisonment. You must also not be under any current criminal investigation, sanctions, restrictions or bans on entry to the European Union, USA, the UK, and Canada. You must provide proof of legally-acquired income and your net worth. Finally, you must be in good health.
Here’s how the process works:
You must choose an "Authorized International Marketing Agent," who will submit your application on your behalf. These agents are "trusted global marketer[s] who [are] permitted to promote the Program and who assists applicants along with the Authorized Local Agent. An ‘Authorized Local Agent’ is someone who has been granted a Local Agent’s licence by the Minister and who is authorized to act on behalf of the main applicant with respect to his or her application."
Contact an Authorized Marketing Agent, "whose role is to provide the applicant with assistance in preparing documents for submission... The applicant will need to complete official forms, attend a medical examination, and obtain certain supporting documents – all of which must be submitted in English and be appropriately legalized. If the applicant is purchasing real estate, this will need to be reserved through a sale and purchase agreement. The Authorized Marketing Agent will be able to advise the applicant on the preparation of the documents and on how to have them legalized." Supporting documents include your "current passport, birth certificate, picture ID, police clearance certificate, education certificate, proof of address, marriage/divorce certificate, bank reference, proof of source of funds, and four different forms."
Once you have completed all required forms and assembled all necessary documentation, "the Authorized Local Agent submits the application to the Executive Office of the CBIC. The Authorized Local Agent then becomes responsible for liaising with the Executive Office of the CBIC in relation to all correspondence, queries, or questions that may arise with respect to the applicant’s file. There is currently no mandatory interview requirement for the Grenada Citizenship by Investment Program."
Your application will be "vetted by the Government through a thorough due diligence background check, during which time submitted information is examined and verified. The CBIC considers application files in light of this due diligence check, and then issues a recommendation about the application. Final approval is in the hands of the Minister, who generally follows the CBIC’s recommendation. Upon the Minister making a decision, the applicant is issued a letter (through his or her Authorized Local Agent) detailing whether the application was successful, delayed for further processing, or rejected."
Once your application is approved, "the CBIC issues a letter instructing the applicant (through his or her Authorized Local Agent) to either make the contribution (for the NTF option) or complete the purchase of his or her real estate. If real estate is purchased, then the applicant must demonstrate completion, as well as the execution of all necessary documents. Upon receiving proof of payment, the CBIC issues the certificate of registration, establishing that the applicant has received Grenadian citizenship. Authorized Local Agents must use this certificate to apply for a Grenadian passport on behalf of the applicant."
Upon approval of your application for a Grenadian passport, you must take the Grenadian Oath of Citizenship. Sovereign Man reports that "this can be done digitally via Zoom," meaning you don’t even have to travel to Grenada to take the oath.
Your passports will be issued, and can be mailed to your address, meaning you also don’t have to travel to Grenada to pick them up.
"Stories of investors having a really hard time to renew their passports have been circulating online. Eventually, they got renewed, but after much trouble. That’s not to say that you will face the same issues, but it’s a little something to keep in mind."
Obtaining second citizenship is a big step in your journey to Escape From The West. Once you have your second passport, and a residence outside the West, you’ll be able to begin the process towards renouncing your U.S. or other Western Citizenship. Then you can enjoy true freedom and prosperity.
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