On Grenada's real estate route, buying the unit is the start of the commitment, not the end. The investment must be held for a minimum period, generally reported as five years, and what happens when that period ends determines how much of the original outlay comes back. Many investors spend months comparing projects and almost no time planning the exit, which is the stage where most disappointment occurs.
This page explains how the holding period works, what counts as breaching it, the realistic options for selling afterwards and how to plan the exit from the day you buy. Rules on start dates, permitted transfers and resales can change and may be set out in your purchase agreement, so confirm the position for your own investment with the Investment Migration Agency, your agent and an independent Grenadian attorney.
When the clock starts, and why the date matters
The holding period is commonly described as running for five years from the grant of citizenship, but different documents use different reference points: the date of purchase, the date of completion or the date of registration as a citizen. These can be months apart, especially where a unit is bought off-plan or completion is delayed.
The difference matters. If you assume the period runs from purchase while the programme counts from citizenship, you could sell early without realising it. Ask your agent to state in writing the exact date on which your holding period ends, and on what basis, and keep that letter with your certificate of registration.
Also check whether the developer's contract imposes its own restrictions. Rental pool agreements, management contracts and buy-back schemes often have terms that run longer than the programme's minimum, and these bind you contractually even after the holding period ends.
What counts as a breach
Selling or transferring before the end date. The clearest breach. Even a transfer to a family member or into a company you own may count, unless approved.
Charging or mortgaging the asset. Using the unit or share as security for a loan may be treated as reducing the investment. Check before borrowing against it.
Side agreements that return the money. Any arrangement under which the developer refunds part of the price, pays a guaranteed sum that effectively returns the investment, or agrees to repurchase early can be treated as a breach and undermine the basis of the grant.
Restructuring that dilutes the interest. If a project company issues new shares or merges, your interest may change. Developers and agents should explain how such events are handled under the programme.
Consequences. A breach can expose citizenship to review and possible revocation proceedings. The risk falls on the investor, even where the developer proposed the arrangement.
The three realistic exits
Resale to a new programme applicant. Historically the most valuable exit. A buyer who also wants citizenship will pay close to the programme price, because the purchase gives them eligibility. Whether a resale qualifies depends on the rules in force at the time, and some programmes in the region have restricted repeat use of the same unit. Do not assume this exit will be available on the terms that applied when you bought.
Developer buy-back. Some projects offer to repurchase units after the holding period, at a set price or a percentage of the original. Such promises are only as strong as the company behind them. A single-purpose project company may have little money in year five if sales have slowed.
Open-market sale. Selling to an ordinary buyer, local or foreign, who wants the unit for its income or use. Such buyers price the asset on its yield and condition, not on citizenship eligibility, so this is usually well below the programme price. A fractional hotel share is a narrow product with few natural buyers.
Planning the exit from day one
The best time to plan the sale is before you buy. These steps make the five-year point far less stressful:
- Before purchasing, ask the developer how many investors have already sold after their holding periods, through which route and at what proportion of the original price.
- Get any buy-back offer in writing, with the price, the paying entity, the source of funds and what happens if that entity cannot pay.
- Ask your attorney how Grenada's property transfer tax and any stamp duties will apply on sale, given the form of your interest, and who pays them.
- Keep all records: purchase agreement, title or share certificates, management statements, rental income records and maintenance invoices. A buyer's lawyer will ask for them.
- About a year before the end date, ask your agent to confirm the date and the current resale rules, and begin marketing early.
- Before signing any sale, obtain written confirmation that the holding period has ended and that the transfer will not affect your citizenship.
Valuing what you will get back
A sensible way to treat the real estate route is to assume the government fee, all application and professional costs and some portion of the purchase price are spent, and to regard anything recovered at sale as a bonus. If your decision only makes sense with a full-price resale, the route is probably the wrong one for you.
Factors that improve recovery include a completed, well-run hotel with a recognised operator, a strong rental record, a location such as Grand Anse that attracts year-round visitors and a developer that still has a pipeline of programme sales. Factors that hurt include a stalled project, high owner charges, hurricane damage and a resale market crowded with other investors whose holding periods ended at the same time.
That last point is easy to overlook. Investors in the same project tend to reach the five-year mark together, all looking for buyers at once. Staggering your sale, or being prepared to hold longer, can produce a better result.
After the sale: citizenship and tax
Once the holding period has been completed and the sale is done properly, your citizenship does not depend on keeping the property. You remain a Grenadian citizen, with the same rights as before, and can buy other property in Grenada as a citizen without an Alien Landholding Licence.
Grenada does not tax capital gains, but transfer taxes and fees apply to property sales, and your home country may tax any gain or treat the disposal in its own way. Proceeds sent abroad should be documented so that your bank and tax authority can see where the money came from.
Finally, notify your agent of the sale and keep evidence that it took place after the end of the holding period. If questions arise years later, a clear paper trail showing that you complied with the rules is the best protection you can have.
Mistakes investors make at the five-year mark
Selling a few weeks early. Miscounting the end date is surprisingly common, especially where completion was delayed. Confirm the date in writing before accepting any offer.
Waiting for the developer to act. A buy-back or resale promise rarely triggers itself. Many contracts require the owner to give notice within a set window; miss it and the right may lapse.
Ignoring owner charges. Unpaid maintenance or management fees can be deducted from sale proceeds or block a transfer. Keep accounts with the operator up to date throughout the holding period.
Using an agent with a conflict. The firm that sold you the unit may also be selling units for the developer to new applicants. Ask who they represent in your sale.
Frequently asked questions
How long must a Grenada CBI property be held?
The minimum holding period is generally reported as five years. The exact start date, whether purchase, completion or grant of citizenship, should be confirmed in writing for your investment, since selling early can put citizenship at risk.
Can a CBI property be sold to another citizenship applicant?
It has often been possible, and it is usually the most valuable exit. Whether a resale qualifies depends on the rules in force at the time of sale, which can change. Confirm with the Investment Migration Agency and your agent before relying on it.
Are developer buy-back promises reliable?
Only as reliable as the entity making them. Check who guarantees the buy-back, at what price, from what funds, and what happens if that company cannot pay. Have an independent Grenadian attorney review the terms.
Does selling after five years affect citizenship?
No, provided the holding period has genuinely been completed and the sale complies with the rules. Get written confirmation of the end date before selling and keep records proving the timing.
Is there tax on selling a Grenada CBI property?
Grenada has no capital gains tax, but property transfer taxes and fees apply to sales, and your home country may tax the gain. Ask an attorney and a tax adviser how the rules apply to your form of interest.
