Tax Incentives for Expatriates and Digital Nomads in Grenada
Grenada, a Caribbean island nation, offers a range of tax incentives and breaks specifically designed to attract expatriates and digital nomads. These incentives aim to promote remote work, attract skilled professionals, and support temporary residents.
Eligibility Criteria
To qualify for these tax breaks, individuals must meet the following criteria:
- Expatriates: Expatriates must be non-domiciled in Grenada, meaning they do not intend to make Grenada their permanent home. They must also have a valid work permit or be employed by a Grenadian company.
- Digital Nomads: Digital nomads must be self-employed or work remotely for non-Grenadian companies. They must also have a valid visa that allows them to work in Grenada.
Types of Tax Breaks
Expatriates and digital nomads in Grenada can benefit from the following tax breaks:
- Personal Income Tax Exemption: Expatriates and digital nomads are exempt from paying personal income tax on their foreign-sourced income. This exemption applies to income earned from employment, investments, and other sources outside of Grenada.
- Corporate Tax Exemption: Digital nomads who establish a company in Grenada may be eligible for a corporate tax exemption for up to 10 years. This exemption applies to companies engaged in certain industries, such as tourism, manufacturing, and technology.
- Import Duty Exemption: Expatriates and digital nomads can import personal belongings and household goods duty-free. This exemption includes items such as furniture, appliances, and vehicles.
Application Process
To apply for these tax breaks, expatriates and digital nomads must submit an application to the Grenada Revenue Authority (GRA). The application must include proof of eligibility, such as a work permit, visa, or company registration certificate. The GRA will review the application and issue a tax exemption certificate if the applicant meets the eligibility criteria.
Legal References
The tax breaks for expatriates and digital nomads in Grenada are established through the following legal instruments:
- Income Tax Act (Chapter 123 of the Laws of Grenada): Specifies the tax treatment of residents and non-residents, including the personal income tax exemption for foreign-sourced income.
- Corporate Tax Act (Chapter 124 of the Laws of Grenada): Provides for the corporate tax exemption for companies engaged in certain industries.
- Customs Act (Chapter 125 of the Laws of Grenada): Outlines the import duty exemption for personal belongings and household goods.
Rationale and Objectives
The tax incentives for expatriates and digital nomads in Grenada are designed to attract skilled professionals, entrepreneurs, and remote workers to the country. These incentives aim to foster economic growth, contribute to the development of Grenada as a hub for international talent and innovation, and support the country's tourism industry.
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