Do You Need an Alien Landholding Licence? A Decision Guide

Before a foreign buyer worries about the cost of a licence, there is a simpler question to settle: does the licence apply at all? In Grenada the answer turns on a legal definition, not on how long someone has lived on the island, how much they invest or how Grenadian they feel.

The rules come from the Aliens (Land Holding Regulation) Act, Chapter 13 of the laws of Grenada. Broadly, it requires an "alien", meaning a person who is not a citizen of Grenada, to obtain a licence from the government before holding land. The Act also reaches companies controlled by aliens. The details matter, because the licence affects the timetable, the budget and how a sale agreement should be written.

This decision guide walks through the common situations. It is a starting point for a conversation with a Grenadian attorney, who should confirm how the law applies to your circumstances before you sign anything.

The core test: citizenship, not residence

The single most important point is that residence does not change your status. A foreign national who has lived in Grenada for decades, holds a residence permit, pays tax locally and has children in Grenadian schools is still an alien for the purposes of the Act unless they have become a citizen. Conversely, a Grenadian citizen who has lived abroad for most of their life and holds another passport too is not an alien and buys land as a citizen.

This surprises some long-term residents, who assume that time on the island eventually removes the requirement. It does not. What removes it is citizenship, whether by birth, descent, registration, naturalisation or the citizenship by investment programme.

Citizenship by descent deserves particular mention. Many people abroad with a Grenadian parent or grandparent may be entitled to citizenship and have simply never applied for it. If that describes you, it is worth asking an attorney, or the relevant government office, whether you qualify before you buy. Obtaining citizenship first can mean buying without a licence at all, which on a sizeable purchase is a significant saving. The application has its own timeline and evidence requirements, so start early.

Common situations, one by one

Dual nationals who hold Grenadian citizenship. Buy as citizens. Bring proof of Grenadian citizenship, such as a Grenadian passport or citizenship certificate, to your attorney at the start.

Permanent residents and long-stay foreigners. Still aliens under the Act. A licence is generally required for a purchase.

CARICOM and OECS nationals. Regional integration has opened up movement and work for many Caribbean nationals, but buyers should not assume it removes the licence requirement for land. Ask a Grenadian attorney at the outset how the current law treats nationals of your country.

Citizens by investment. Once citizenship is granted, later purchases are made as a citizen. Units in government-approved projects bought as the qualifying investment are generally treated as not requiring a licence; confirm the position for your project.

Spouses of Grenadians. Marriage to a citizen does not by itself make a foreign spouse a citizen. How land is titled between the couple affects whether a licence is needed, so take advice before choosing.

Companies. A company controlled or owned by aliens can fall within the Act. Buying through a company is not a route around the licence.

Leases, inheritance and other grey areas

The licence is usually discussed in the context of buying freehold land, but the Act is concerned with holding land, which can extend beyond outright purchase. Longer leases, options, and certain arrangements that give a foreigner the benefit of land without formal ownership may also need to be considered under the Act. Short rental of a home is a different matter. Where the lease term is long or the arrangement is unusual, ask an attorney before signing.

Inheritance raises its own questions. A foreign national who inherits Grenadian land from a relative may need to address the licence before the land can be transferred into their name, and the treatment can differ from a purchase. Families with members abroad, which in Grenada is most families, should discuss this when making wills, so that heirs are not caught unprepared.

Mortgages, trusts and nominee arrangements are further grey areas. Holding land through a Grenadian friend or relative to avoid the licence is risky and may be unlawful; the foreigner has little protection if the relationship sours, and the arrangement can unravel on death or sale. The safe principle is simple: if a non-citizen is the real owner or controller of land, assume the Act applies until an attorney says otherwise.

A quick self-check before you start

Work through these questions in order. If the answer to the first is yes, the licence is unlikely to apply to you; if you reach the end, plan on needing one:

1. Are you a citizen of Grenada, by any route, and can you prove it with a passport or certificate?
2. If not, could you be entitled to Grenadian citizenship by descent or another route, and would it be practical to obtain it before buying?
3. Are you buying as part of an approved citizenship by investment project, where the licence is generally not required for the qualifying unit?
4. Are you buying alone, with a Grenadian spouse or partner, or through a company, and who will be the registered owner?
5. Is the arrangement a purchase, a long lease, an inheritance or something else that gives you control of land?
6. Have you asked a Grenadian attorney to confirm the answer in writing for your specific case?

Mistakes that cause trouble later

Problems with the licence often come from assumptions made early, before an attorney is involved:

• Assuming years of residence or a work permit removes the requirement.
• Signing a sale agreement with no licence condition, then discovering the purchase cannot complete without one.
• Putting the land solely in a Grenadian partner's or friend's name to avoid the fee, leaving the foreign party without legal protection.
• Setting up a local company and assuming that makes it Grenadian for land purposes, when control by foreigners can bring it within the Act.
• Not checking eligibility for citizenship by descent before buying, and paying a licence fee that might have been avoided.
• Treating a long lease as automatically outside the Act without taking advice.
• Relying on what a previous buyer or a seller says about the rules, rather than on a Grenadian attorney's advice for your circumstances.

Why the answer shapes the whole purchase

Knowing early whether the licence applies changes how the deal is put together. If it does, the sale agreement must be conditional on the licence, with a long-stop date realistic enough to cover a few months of government consideration. The seller needs to understand that completion will not be quick, and your budget must include a fee commonly stated as 10% of the property value. A local buyer competing for the same plot can complete faster and without that cost, which affects how attractive your offer looks.

If the licence does not apply, because you are a citizen or the purchase falls within an exemption, the attorney still needs evidence of that status. A Grenadian passport, citizenship certificate or documents confirming an approved investment project should be produced at the start, not at completion. Discovering a missing document late can delay completion just as surely as waiting for a licence.

For couples and families, the answer may differ between individuals. One partner may be a citizen and the other not; a child born in Grenada may be a citizen while the parents are not. How the land is titled between them has consequences for the licence, for inheritance and for any later sale, so those choices are worth discussing with an attorney before the agreement is drafted.

Frequently asked questions