Welcome to the beautiful island of Grenada, where sandy shores meet vibrant culture. If you're a digital nomad, expat, or location-independent worker looking to make Grenada your tax home, you're in the right place. Follow this step-by-step guide to secure your tax residency in this Caribbean paradise.
Step 1: Entry Visa Requirements
Before you can apply for tax residency, ensure that you have the appropriate visa to enter Grenada. Typically, this is a tourist visa, which you can convert to a long-term visa once in the country. Check the specific requirements for your nationality.
Step 2: Obtain a Long-Term Visa
Once in Grenada, apply for a long-term visa or permit that allows you to stay for an extended period. This could be a temporary residence permit or a work permit, depending on your circumstances. Submit necessary documents including proof of financial stability and valid health insurance.
Step 3: Physical Presence
To qualify for tax residency, you must be physically present in Grenada for at least 183 days in a calendar year. Maintain a detailed record of your stay, including entry and exit dates, to support your application.
Step 4: Establish a Local Address
Secure a local residential address in Grenada. This could be a rental property or a purchased home. Ensure you have a lease agreement or property deed as proof of residence.
Step 5: Register with Local Authorities
Register with the Grenada Inland Revenue Division (IRD) to formalize your tax residency status. Provide necessary documentation including your passport, visa, proof of local address, and any other required forms. The registration process may also involve an interview.
Step 6: Open a Local Bank Account
Opening a local bank account can further substantiate your residency claim. Provide your proof of residence, identification, and any other documentation required by the bank. Regularly use this account for transactions to demonstrate economic ties to Grenada.
Step 7: File an Annual Tax Return
As a tax resident, you are required to file an annual tax return with the Grenada IRD. Ensure you report all income accurately and comply with local tax laws. Keep records of all financial transactions and consult the IRD for filing deadlines and requirements.
Legal References
- Income Tax Act, Cap 149
- Immigration Act, Cap 145
- Grenada Citizenship by Investment Act, No. 15 of 2013
- International Companies Act, Cap 152
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