Carriacou Real Estate is here to help you with all aspects of your home and land purchase. Below are questions that we get asked frequently and the answers that will help you get a head start.
1. What are the requirements for a foreigner to purchase land or a house in Carriacou, Grenada?
In order for a foreigner to purchase property in Carriacou, Grenada you are required to apply to the Government for an Alien Land-Holding License. This costs 10% of the agreed purchase price. It is generally a simple process handled by your local lawyer on your behalf. You will be required to produce the following original documentation in support of your application:
- Banker’s reference letters
- Character references
- Police references from your country of residence
2. How much will it cost in fees and taxes?
As a rule of thumb, we advise you to add 14% to the purchase price to cover your lawyer’s fees and Government taxes.
- 10% of purchase price – Alien Land-Holding Licence
- 1% of purchase price – Stamp Duty for Conveyance
- 2% of purchase price – Legal fees for Conveyance
- 15% of legal fees – VAT To the Government of Grenada
- EC$250.00 – Additional Government fees
- EC$1,800.00 – Legal fees for application of Alien Land-Holding Licence
- 15% of legal fees (EC$270.00) – VAT To the Government of Grenada
- EC$25.00 – Stamp Duty for Licence
3. How long will the purchase process take?
The purchase process usually takes between 4 to 6 months to complete. Once your lawyer has the original supporting documentation for your AL she will submit it to Government for approval. This takes between 8 to 12 weeks. Once your application has been approved, completion will follow in 2 – 4 weeks.
4. How do I instruct a lawyer?
We can recommend a local lawyer. You can either deal directly with your lawyer or we will instruct them on your behalf.
5. What deposit is required?
When you sign the sales agreement a deposit of 10% is required. Carriacou Real Estate Ltd or your lawyer will hold this in an Escrow a/c. This deposit is only refundable if the Government does not approve your AL application.
6. Is local financing available?
Yes, it may be possible to secure some local financing to build a house once you have purchased your land. We have branches of The Republic Bank and Grenada Cooperative Bank on Carriacou. Please contact the banks directly, as we do not assist with financing requirements
7. Do I need to be present in person to sign documents?
No, you do not need to be present in person to purchase property. All the documents requiring your signature can be sent to you by secure courier. You then go to a Notary Public and sign them.
8. What happens if I need to sell my property?
If you decide to sell your property you would most likely instruct a local agent. Commissions are generally 5% of the agreed purchase price. There is a Government Sales Tax currently levied at 15% for foreigners and 5% for Grenadians. Your lawyer’s fees would be 1%.
9. How do I build a house on my land?
Firstly, you will need to employ a local architect to design your house and submit plans to the Physical Planning Unit, the Government body responsible for regulating building on the islands. Once your plans are approved, which may take 16 – 24 weeks, you have one year in which to commence building. Secondly, you will enter into discussions with local builders and ask for a quote.
10. How much does it cost to build a house?
Building costs on the island are currently between US$75 – US$100 per sq. ft. depending on the type of construction and quality of finish. This is for a house. Don’t forget you will need fencing, driveways, paths, drainage and possibly retaining walls. This will add at least 20% to the project cost. If you want a pool that will be an additional cost.
11. If I rent my house for part of the year will the income cover my expenses?
The short answer to this question is no, probably not. The rental market on Carriacou is relatively small and subject to many outside influences which you have no control over – e.g. 9/11 and Hurricanes Ivan & Emily. If you build a house you must be in a financial position to cover the maintenance costs. These costs will vary depending upon the arrangements you put in place. Our parent company Down Island Ltd offers a Property Management service.
12. I own a piece of land in Carriacou, how can I sell it?
In order to sell your property we need the following information from you:
- A copy of your title deed
- A copy of your lot plan
- A copy of your most recent Property Tax receipt
- Directions to find the property or ideally a relative or friend who can show us the location
- A signed contract letter instructing Carriacou Real Estate Ltd to sell your property
- EC$500 upon signing the contract to cover advertising costs