Only property in a project approved by the Government of Grenada qualifies for the real estate route. A beautiful villa above Lance aux Épines or an apartment on Grand Anse does not count, however expensive, unless it forms part of an approved development. Most approved projects have been hotels, resorts and branded residences, because the programme was designed to channel investment into tourism capacity and jobs.
Understanding how approval works helps buyers separate what the government has actually checked from what the developer's brochure implies. This page explains the general approval process, what approval does and does not mean, how projects can lose status and how to confirm that a unit qualifies. Procedures evolve, so confirm current requirements with the Investment Migration Agency and your own Grenadian attorney.
Why the programme approves projects rather than properties
The real estate route exists to bring in development capital. Grenada's south coast has seen several resort projects built with money from programme investors, from Grand Anse and Morne Rouge to Point Salines and La Sagesse, adding rooms and employment that a small island would struggle to finance through conventional lending alone.
By approving whole projects rather than individual homes, the government can assess the developer, the business plan and the public benefit once, and then allow units or shares to be sold to applicants within limits. It also limits the risk of the route turning into a vehicle for overpriced individual properties, a problem the region has struggled with.
This design has a consequence for buyers. You are investing in a business, usually a hotel, more than in a home. The unit or share is part of an operation run by a management company, with income depending on how the hotel performs.
The approval process in outline
Developers seeking approval go through a process that broadly follows these stages. Details vary and are set by the agency and the responsible ministry:
- The developer secures land and planning permissions through Grenada's Physical Planning Unit and other relevant authorities, and prepares a business plan.
- The developer submits an application for project approval, with details of ownership, financing, design, the hotel operator or brand, construction schedule and the number of units or shares to be offered to applicants.
- Due diligence is carried out on the developer, its owners and its sources of finance, as it is on individual applicants.
- The project is assessed for its economic contribution: jobs, rooms, tourism impact and how it fits national plans.
- If approved, the project is authorised to sell qualifying interests up to an agreed limit, under conditions that may include escrow arrangements, construction milestones and reporting.
- The project is then marketed to applicants, normally through licensed agents, and each purchase is linked to an individual citizenship application.
What approval means, and what it does not
It means the project qualifies. A purchase in an approved project, meeting the minimum amount and conditions, can support a citizenship application.
It means the developer passed checks. The developer and its backers have been through due diligence at the time of approval.
It does not guarantee completion. Construction can slow or stop, especially if sales to applicants fall short. Approval is not a government guarantee of the developer's performance.
It does not guarantee returns. Projected rental yields and free nights are commercial promises by the developer or operator, not obligations of the state.
It does not guarantee resale. Approval of the original sale does not mean a later resale to another applicant will qualify. That depends on the rules in force at the time.
It does not cover every unit forever. Approval usually covers a defined number of interests. A project can sell out its allocation, and approvals can be reviewed, suspended or withdrawn.
Benefits that come with approved status
Units in approved projects are exempt from the Alien Landholding Licence that non-citizens normally need to buy land in Grenada. For an ordinary foreign purchase, that licence involves an application and a fee charged as a percentage of the property value, so the exemption is a real saving and removes a separate approval step.
Approved projects also come with a structure designed for programme investors: purchase agreements drafted around the citizenship timeline, escrow arrangements that hold funds until approval, and documentation that the agency recognises. A buyer outside the programme does not get that framework.
These advantages explain why approved units are priced at or above the programme minimum regardless of their market value. The price reflects the citizenship eligibility as much as the bricks and mortar, which matters a great deal when you come to sell.
It also explains why a valuation report on an approved unit should be read with care. A valuer asked what the unit is worth to an ordinary buyer, without programme eligibility, may arrive at a much lower figure than the purchase price. That gap is the true cost of the citizenship element, and it is worth knowing before you sign.
How to confirm a project and unit really qualify
Developers and agents market heavily, and occasionally projects are offered whose status has lapsed or whose allocation is used up. Before signing:
- Ask your authorised local agent to confirm in writing that the project currently holds approval and that the specific unit or share type is covered.
- Ask how many qualifying interests remain under the approval, and whether the allocation has been extended before.
- Check whether the price meets the current minimum for the form of ownership you want, shared or sole.
- Confirm that purchase funds will be held in escrow until approval in principle, and who the escrow agent is.
- Have an independent Grenadian attorney, not one acting for the developer, review the purchase agreement and title arrangements.
- Ask what happens to your money and your application if the project's approval is suspended after you sign.
How projects lose status, and what it means for buyers
Approvals can be reviewed if a developer breaches conditions, misleads the agency, fails to make progress or engages in practices the programme prohibits, such as offering buyers hidden rebates that reduce the real investment below the minimum. Regional regulators have paid particular attention to such discounting.
If a project loses status before your application is approved, your purchase may no longer qualify, and the escrow terms in your agreement decide whether your money comes back. If it loses status after your citizenship is granted, your citizenship should not be affected simply by that fact, provided you complied with the rules, but your investment may be harder to sell.
This is why the quality of the developer matters more than the brochure. A project backed by an experienced builder, a recognised hotel operator and sound finance is far less likely to run into trouble than one relying almost entirely on continued sales to new applicants.
Off-plan or completed: a different kind of risk
Many approved projects sell interests before construction is finished, sometimes before it has begun. Programme money is often part of how the building gets financed, so early buyers are, in effect, funding construction. The upside is access to the project at the start; the downside is exposure to delays, cost overruns and the risk that sales slow before the hotel opens.
A completed, operating project removes construction risk. You can see the building, read occupancy figures, talk to the operator and check how owners have been treated. Interests in completed projects may cost the same or more, and the allocation remaining for programme buyers may be smaller.
If you buy off-plan, look for escrow terms that release money to the developer only as construction milestones are met, independent verification of those milestones, and a long-stop date after which you can withdraw. Ask what happened in the developer's previous projects when timelines slipped, since the answer predicts the future better than any schedule.
Frequently asked questions
Can any Grenada property be used for citizenship by investment?
No. Only interests in real estate projects approved by the government for the programme qualify, and only at or above the current minimum for shared or sole ownership. Ordinary villas and apartments outside approved projects do not count.
Does government approval guarantee a project will be finished?
No. Approval means the project qualifies for the programme and the developer passed checks. It is not a guarantee of completion, rental income or resale value. Buyers should assess the developer's finances and track record themselves.
Do buyers in approved projects need an Alien Landholding Licence?
Units in approved CBI projects are exempt from the Alien Landholding Licence that foreign buyers normally need. Once you are a citizen, you can also buy other property in Grenada without a licence.
How can a buyer check that a project is still approved?
Ask your authorised local agent for written confirmation that the project and specific unit type are currently approved and that the allocation is not exhausted. An independent Grenadian attorney can review the paperwork before you sign.
What happens if a project loses approval after purchase?
Before your application is approved, the escrow terms in your contract usually decide whether funds are returned. After citizenship is granted, the citizenship should generally stand if you complied, but resale may become harder.
