Taxes in Grenada take on a number of forms including federal taxes, income taxes and import tariffs. Federal corporate taxes in Granada are generally charged at a rate of 30% on an annual basis (Hills, 2012). There are a number of capital investment allowances (machinery, computers, vehicles and plant equipment) provided by the Grenadian Ministry of Finance which range from 10% to 25% depending on the type of equipment and depreciation time tables (Hills, 2012). Grenada does not have a capital gains tax, however the transfer of property does incur a 5% property tax which is increased to 25% for foreign investment (10% to the local company or individual and 15% for the alien purchaser) (Hills, 2012). Prior to 2010, Grenada did not have a sales tax, however, since then a value added tax (VAT) of 15% has been put in place for all goods and services with the exception of hotels which are charged at a lower 10% rate. Additionally, telephony in Grenada is charged at a 20% VAT rate and the VAT is balanced between the costs of VAT paid vs owed, resulting in net calculations which can produced creditable months (Hills, 2012).

Personal income in Grenada is taxed only for individuals making more than $30K  ECD ($10.71K USD) and then at a rate of 0.25% to the first $100K ECD ($35.70K USD) at which point the rate increases to 0.5%. Import tariffs to Grenada tend to be very high, ranging from 5 to 40% of the cost of the goods (Hills, 2012). This price is passed directly to the consumer and very few exemptions are given with the Grenada Customs & Excise Division acting as a semiautonomous tax clearing house (FIAS, 2004).

In an effort to encourage the development of tourism and manufacturing in Grenada the government offers full tax holidays for up to ten years in the case of the former and 15 years for the later. These holidays include no corporate profit tax and in a number of cases import tax exemptions or reductions (Hills, 2012).