Economy Guide in Grenada

The Cost of Living Index in Grenada is 75.2, indicating an expensive cost of living compared to NYC. Groceries are at 71.6 and restaurant prices at 49.0 relative to NYC.

The Property Price to Income Ratio is 164.8 years, indicating a very expensive housing market for purchasing. The Rent Index is 14.7, suggesting rentals are significantly more affordable than purchasing.

The Purchasing Power Index is 37.3, indicating low buying power compared to NYC. This suggests that average incomes may not keep pace with living costs.

Grenada has a territorial tax system with no capital gains, inheritance, or wealth taxes. Personal income tax for residents is progressive: 0% on the first EC$36,000, 10% on income between EC$36,001 and EC$60,000, and 28% on income above EC$60,000. The standard VAT is 15% (10% for tourism), and property taxes range from 0.2% to 0.5% of market value with some exemptions.

Grenada was ranked 146th out of 190 economies in the World Bank's 2019 Ease of Doing Business report, indicating a moderately challenging regulatory environment. However, the government actively promotes foreign direct investment with incentives such as tax waivers, import duty exemptions, and full repatriation of profits.

Grenada's National Insurance Scheme (NIS) provides comprehensive social security benefits, including age (pensions/grants), invalidity, survivors, sickness, unemployment, maternity, and employment injury. Primary healthcare is largely free for citizens and residents, funded by the NIS. The pensionable age is gradually increasing from 60 to 65 years between 2024 and 2029.

Deposits in Grenada are protected up to EC$50,000 (approximately USD 18,500) per depositor per institution by the Eastern Caribbean Deposit Insurance Corporation (ECDIC). The financial sector is regulated by the Eastern Caribbean Central Bank (ECCB) and the Grenada Authority for Regulation of the Financial Industry (GARFIN), and has been stable with high liquidity and low non-performing loans in recent years. Foreigners face no restrictions in opening bank accounts.