Grenada as a tax haven

Grenada is a country which has had a history which presented trying times for the country, but shaped the foundation of a stable democracy which is committed to succeeding. As a member of the court system of the eastern Caribbean and an heir of the Westminster style form of parliament and English Common, tax haven Grenada is reassuring as a choice offshore jurisdiction.

Finding new ways and effective strategies to develop and diversify Grenada’s economy has been a continuous effort of governments which made strides in advancing manufacturing, tourism, FDI and financial services. As a tax haven, diversifying an economy which faces the challenges of mountainous terrain, limited resources and international accords requires the capacity and ability to attract and stimulate adequate FDI and domestic enterprise. Tourism in tax haven Grenada accounts for about 3.6% of the global market for stay over and cruise passenger tourists, which compared to other main tourist destinations is relatively small but represents a 35.5% of Grenada’s gross domestic product. Though it is claimed that the exceptional growth of tourism in tax haven Grenada has been hindered by insufficient tourist attractions and an underdeveloped tourism product, in 207, the inflow of FDI into Grenada had increased to EC$340.9 million from EC$262.9 the previous year as a result of new hotels that were built and progress accomplished in mobile telecommunication and infrastructure. Additionally, public and private investment in manufacturing has helped this sector to be an important part of the economy of tax haven Grenada as was evidenced in the period between 2000 and 2004 during which manufactured goods represented 47.6% of total exports.

As a tax haven, financial services contribute to the emergence of new sectors within which lawyers, accountants, business consultants and secretaries are able to identify niche markets. Offshore financial services has enabled Grenada to smoothly steer its economy away from being heavily dependent of agriculture, to the extent that as a tax haven, Grenada’s offshore and services sector currently represent about 70% of gross domestic product.

Factors which influence positive growth in Grenada as a tax haven are political, social and economic stability. The tax haven status that Grenada holds also ties in with an open economy, an adequately regulated business climate for trade, production and investment in the same way that the country is known for its tax friendliness to offshore companies.

Tax haven Grenada facilitates the creation of international business companies which operate on the grounds of being permitted to trade globally with the exception of Grenada where offshore companies are unable to provide local residents with their goods and services. On this basis, Grenada offshore companies are not subject to taxes which are imposed locally. Tax haven Grenada therefore applies no taxes on the profits, income, capital gains, dividends, gifts and estates of an offshore company or its members.

International banking and trust licenses are issued by the relevant authorities in tax haven Grenada for the establishment of offshore banks and offshore trusts. Offshore trust companies and banks enjoy the same tax reliefs that offshore companies obtain and are subject to the same rule of offering their services to only individuals and corporations which are resident abroad.