Very high buying costs in Grenada
May 26, 2017
How high are realtors’ and lawyers’ fees in Grenada? What about other property purchase costs?
|Alien Land Holding License||10%||buyer|
|Legal Fees||1.00% - 2.00%||buyer|
|Property Transfer Tax||10.00%
5.00% - 15.00%
|Real Estate Agent´s Fee||5.00%||seller|
|Costs paid by buyer||22.00% - 23.00%|
|Costs paid by seller||10.00% - 20.00%|
|ROUNDTRIP TRANSACTION COSTS||32.00% - 43.00%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Grenada?
Foreigners can purchase property provided they acquire an Alien Land Holding License before the purchase. The license is currently 10% of the selling price. A notary public handles the paperwork. A police clearance from your place of residence and bank reference is necessary to process your application. This can take up to three months to process.
After a license is secured the conveyance process may proceed. A survey is not compulsory but advised. When the conveyance is satisfactorily completed, the buyer will have to accomplish the payments. The lawyer will then register the transfer and pay government duties (stamp duty and sales tax on property transfers).
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Alien Land Holding License:
Under the Aliens Land Holding Regulations Act No.13 of 1922, all non-nationals are required to obtain an alien land holding license to hold interest in land, real estate and/or shares and/or to be directors of companies that own real estate. The license fee is 10% of property value.
A citizen selling a property pays 5% transfer tax. A non-citizen selling a property pays 15% transfer tax.
A non-citizen buying a property pays 10% transfer tax.