Any non-citizen who wants to own land in Grenada, whether a house lot, a villa or an apartment, needs an Alien Landholding Licence (ALHL). The requirement comes from the Aliens (Land Holding Regulation) Act, Cap. 13, which dates from 1968 and allows the government to license a non-citizen to hold land. Without the licence the purchase cannot lawfully complete.
For most buyers the licence is the largest single cost after the price itself, at 10% of the value, and the longest step in the timetable. This page covers who needs one, what it costs, what your lawyer will ask you for, how long it takes and the mistakes that turn a routine application into a problem.
Who needs a licence and who does not
The test is citizenship, not residence. A foreigner who has lived in Grenada for twenty years and holds permanent residence still needs a licence; a Grenadian citizen living in London does not. Dual citizens who hold Grenadian nationality buy as citizens.
Companies can need one too. Where a company buying land is owned or controlled by non-citizens, through its shareholders or directors, the licence requirement can apply to the company. Buying through a company is therefore not a way around the licence, and your lawyer should review the ownership structure before you choose it.
The main exemption is for investors buying into government-approved projects under the citizenship by investment programme, whose units do not require a licence. Ask your lawyer whether any other exemption fits your circumstances, but plan on the basis that an ordinary foreign purchase needs one.
Citizens of other CARICOM countries should not assume regional membership removes the requirement. Grenadian citizenship is what matters under the Act, so a Trinidadian, Vincentian or Jamaican buyer should ask a Grenadian lawyer at the outset whether a licence is needed for their purchase, rather than discovering it after signing.
The fee: 10% of the value
The rate. The licence fee is commonly stated as 10% of the value of the property, paid to the Government of Grenada when the licence is granted and before completion. On a US$350,000 house that is US$35,000.
What it is charged on. In practice the fee is assessed on the land and buildings. Furniture and contents included in the sale are generally excluded, which is why sale agreements for furnished homes should list and value the contents separately and honestly.
Undervaluing does not work. Declaring an artificially low price to reduce the fee exposes you to reassessment, penalties and problems when you sell. The government can check values.
Other costs. Expect stamp duty and legal work on the application itself. Your lawyer's fee for the licence is usually part of their conveyancing quote; ask.
Confirm current rates. Rates and their basis can change through budget measures. Your lawyer will confirm the figure at the time you apply.
What your lawyer will ask you for
The application is lodged by your Grenadian attorney once the sale agreement is signed. Requirements vary a little by case, but buyers are generally asked for:
- a copy of your passport and, where relevant, those of your spouse or co-buyer;
- a police certificate of character from your country of residence, recent enough to be accepted;
- a bank reference, and often character references from people who know you;
- the signed sale agreement, with the price and a description of the property;
- a survey plan or registered description of the land, supplied with the seller's title documents;
- for a company, its incorporation documents and details of directors and shareholders;
- a statement of how you intend to use the property, particularly for undeveloped land.
How long it takes, and what happens meanwhile
Licence applications are considered by the government rather than issued over the counter, and approval commonly takes around three months; longer is not unusual, particularly around holidays or where the land is large, undeveloped or in a sensitive location. Your lawyer cannot speed it up much, but a complete application avoids sending it back for more information.
During the wait, the sale agreement holds the deal. The seller keeps the property off the market, your deposit sits in escrow, and both sides wait. This is why the agreement should include a long-stop date and state clearly that the deposit is returned if the licence is refused.
Use the time productively: arrange the money transfer and source-of-funds paperwork, obtain insurance quotes, and, if you plan renovations, talk to builders and the planning authority. Do not start work on the property before completion; until the deed is registered, it is not yours.
Land, joint buyers and second purchases
Applications for undeveloped land tend to attract more questions than those for finished homes, particularly for large acreages, agricultural land or coastal sites. The government wants to know what you plan to do with the land. A clear, realistic statement of intended use, for example a single family home within a stated period, helps. A vague plan to "hold it as an investment" invites scrutiny.
Where a couple buys together and both are non-citizens, both are named in the application and both provide documents. If one spouse is Grenadian, ask your lawyer how the purchase should be structured, because the licence requirement attaches to the non-citizen's share.
A licence relates to the specific property it describes. Buying a second property, or an adjoining lot to extend your garden, means a fresh application and a fresh fee. Keep copies of your first licence and your police certificate details; a second application is usually smoother when your earlier file is in order.
Traps to avoid
Nominee arrangements. Putting the property in a Grenadian friend's name to avoid the licence leaves you with no legal ownership and no protection if the friendship, or the friend, does not last. It may also be unlawful.
Paying the deposit on a weak agreement. If the agreement does not make the deposit refundable on refusal of the licence, you could lose it through no fault of your own.
Ignoring licence conditions. A licence can carry conditions, for example on how the land is used or developed. Read the licence when it arrives and keep it with your deed.
Assuming a lease avoids it. Long leases can raise similar questions. Take legal advice before relying on a lease instead of a purchase.
Forgetting the fee in the budget. Buyers who budget only for the price and legal fees sometimes find the 10% a shock at completion. Price it in from the start.
Licence, citizenship and the bigger decision
For buyers planning to spend large sums, the licence fee is part of a wider calculation. Someone eligible for citizenship by descent or marriage might register as a citizen first and then buy without a licence, saving 10% of the price. The citizenship routes take months, so this only works if you are not in a hurry.
Investors considering citizenship by investment face a different trade-off. Buying an approved project unit avoids the licence but means owning a hotel interest rather than a home; becoming a citizen through the National Transformation Fund and then buying an ordinary home as a citizen avoids the licence on that home. Each route has its own costs and risks, and the right answer depends on how you intend to use the property.
For most foreign buyers, though, the licence is simply a cost of buying in Grenada, comparable to transfer taxes elsewhere. Budget for it, let your lawyer manage it and keep the original licence safe for when you sell.
Frequently asked questions
How much is the Alien Landholding Licence in Grenada?
It is commonly 10% of the value of the land and buildings, paid when the licence is granted. Furniture listed separately in the sale agreement is generally excluded. Rates can change, so confirm the current figure with your lawyer.
How long does an Alien Landholding Licence take in Grenada?
Around three months is typical, and longer is not unusual. The sale agreement should allow for this with a long-stop date and a refund of the deposit if the licence is refused.
Do permanent residents need an Alien Landholding Licence?
Yes. The requirement depends on citizenship. A permanent resident who is not a Grenadian citizen still needs a licence to buy land or a home, and pays the fee.
Can you avoid the licence by buying through a company?
Not if non-citizens own or control the company. The licence requirement can apply to the company itself, through its shareholders or directors. Ask your lawyer before choosing a company structure, and never rely on nominee shareholders.
Do citizenship by investment buyers need the licence?
Not for units in government-approved projects bought under the programme, which are exempt. Once you are registered as a citizen, any later purchase of an ordinary home or land is also made without a licence, like any other Grenadian.
What happens to the deposit if the licence is refused?
That depends on the sale agreement. Properly drafted agreements return the deposit in full if the licence is refused, and set a date after which either side may withdraw. Check the wording with your own lawyer before you sign and pay.
