Grenada's Citizenship by Investment program stands at a pivotal crossroads in 2025. For over a decade, the program has operated with absolutely no residency requirements—a cornerstone feature that has attracted thousands of international investors seeking Caribbean citizenship without lifestyle disruption. However, a transformative regional agreement signed on July 1, 2025, proposes to fundamentally alter this landscape by introducing mandatory residency obligations across all five Caribbean CBI nations. This comprehensive analysis examines the current state of Grenada's residency requirements, the proposed changes, and their implications for high-net-worth individuals considering the program.

The stark reality facing prospective applicants is simple: those who act before the new regulations take effect will secure citizenship under the current rules with zero residency obligations, while future applicants may face mandatory physical presence requirements and integration programs. This timing creates a critical decision point for investors who have long valued Grenada's flexibility in offering full citizenship rights without demanding physical ties to the island nation.

Current residency framework maintains complete flexibility

Grenada's CBI program currently operates under the Citizenship by Investment Act No. 15 of 2013, as amended in 2019, which explicitly eliminates all residency requirements for citizenship acquisition and maintenance. The official government position, stated directly on the Investment Migration Agency website (cbi.gov.gd), confirms that there is "no requirement to reside in Grenada before or after citizenship is granted." This represents one of the most investor-friendly frameworks globally, allowing complete geographic flexibility while providing full citizenship rights.

The absence of residency requirements extends through every phase of the citizenship journey. During the application process, investors need never set foot on Grenadian soil. All documentation, due diligence procedures, and even the mandatory interviews introduced in 2024 can be completed remotely through authorized agents. Once citizenship is granted, new Grenadians face no obligations to visit the country, establish business ties, or maintain any physical presence. Even passport renewals can be processed through Grenadian embassies and consulates worldwide without returning to the island.

This framework has positioned Grenada competitively among global citizenship programs, particularly appealing to international business professionals, digital nomads, and families seeking backup citizenship options without disrupting their established lifestyles. The program's structure recognizes that modern global citizens often maintain multiple bases and complex international commitments that make mandatory residency requirements impractical or impossible.

The legislative foundation for this flexibility stems from deliberate policy decisions. The 2019 amendment to the Citizenship by Investment Act specifically removed language requiring permanent residence as a prerequisite for citizenship, streamlining the pathway for international investors. This change reflected Grenada's strategic positioning in the competitive CBI marketplace and its understanding of investor priorities.

Physical presence obligations remain nonexistent under current rules

The complete absence of physical presence requirements distinguishes Grenada's program from many global competitors. Unlike programs in Europe or other regions that demand significant time commitments, Grenada imposes no minimum stay requirements at any stage. This extends to all categories of applicants, including dependents, who enjoy identical treatment regardless of age or relationship to the main applicant.

The program's current structure eliminates traditional residency milestones found in other citizenship pathways. There are no requirements to establish a residential address, open local bank accounts beyond investment purposes, enroll children in local schools, or demonstrate community ties. This approach recognizes that citizenship in the modern era often transcends physical boundaries, particularly for internationally mobile individuals and families.

For real estate investors, the five-year holding period represents the only temporal commitment, though this relates to investment maintenance rather than physical presence. Investors can purchase qualifying property, hold it for the required period, and eventually sell it to another CBI applicant without ever visiting the property or the country. Property management, rental income collection, and all administrative matters can be handled remotely through local representatives.

The absence of physical presence requirements extends to all eligible family members. Spouses, children under 30, parents, grandparents, and even unmarried siblings face identical non-residency treatment. This comprehensive approach ensures that entire multi-generational families can obtain citizenship without coordinating complex travel schedules or disrupting established living arrangements.

Dual citizenship creates strategic advantages without complications

Grenada's full recognition of dual and multiple citizenships adds another layer of flexibility to the residency equation. The country imposes no restrictions on holding other nationalities, eliminating potential conflicts between citizenship obligations. This policy allows investors to maintain their original citizenships and any associated residency requirements without interference from Grenadian law.

The distinction between citizenship and tax residency remains crucial for understanding Grenada's approach. While citizenship confers rights and protections, it does not automatically create tax obligations. Grenada operates a territorial tax system where only individuals physically present for more than 183 days annually become tax residents. This separation means CBI citizens can enjoy full citizenship benefits—including visa-free travel to 145+ destinations and the unique E-2 visa treaty with the United States—without incurring Grenadian tax obligations on their worldwide income.

This framework particularly benefits individuals from countries with citizenship-based taxation, as Grenadian citizenship alone does not trigger additional tax compliance requirements. The territorial system means that CBI citizens who never establish tax residency face no reporting obligations to Grenadian authorities on their global assets or income.

Tax residency rules create clear boundaries

Understanding Grenada's tax residency framework proves essential for CBI investors, particularly given the clear separation between citizenship and tax obligations. The primary threshold stands at 183 days of physical presence annually, with alternative tests including 122 days per year over three consecutive years or an average of 91 days over four years. These rules, administered by the Grenada Inland Revenue Division, determine tax obligations rather than citizenship status.

For CBI citizens who remain non-tax residents, Grenada's territorial system provides significant advantages. Foreign-source income remains entirely untaxed, while any Grenadian-source income faces only a 15% withholding tax. The country imposes no capital gains taxes, inheritance taxes, or wealth taxes, creating an efficient structure for international wealth management. Property transfer taxes do apply at 15% for non-residents versus 5% for citizens, representing one of the few areas where citizenship status affects tax treatment.

The introduction of the G-TAX digital system has modernized tax administration, though CBI citizens with no Grenadian income or presence typically have no interaction with this system. The platform primarily serves those with local business interests or property income, streamlining compliance for the minority of CBI citizens who develop economic ties to Grenada.

Grenada's participation in international tax transparency initiatives, including the Common Reporting Standard (CRS) and FATCA compliance with the United States, ensures that the program meets global regulatory standards. These frameworks focus on information exchange rather than creating new tax obligations, maintaining the program's attractiveness while satisfying international requirements.

Regional transformation threatens flexibility advantage

The most significant development facing Grenada's CBI program emerged on July 1, 2025, when representatives of all five Caribbean CBI nations signed a draft agreement establishing the Eastern Caribbean Citizenship by Investment Regulatory Authority (EC CIRA). This proposed framework would introduce mandatory residency requirements for the first time in the program's history, fundamentally altering its value proposition for international investors.

The proposed requirements center on a 30-day physical presence obligation within the first five years after obtaining citizenship. While modest compared to many global residency programs, this represents a dramatic shift from the current zero-day requirement. The days need not be consecutive, providing some flexibility, but the requirement would apply uniformly to all new citizens, including dependents.

Beyond physical presence, the framework mandates participation in integration programs covering civic education, national history, and constitutional principles. These programs aim to create "genuine and effective links" between new citizens and their adopted country, addressing international criticism about "citizenship shopping" and purely transactional relationships.

The enforcement mechanisms proposed create particular concern for investors accustomed to flexibility. Non-compliance could result in administrative fines up to 10% of the original investment value—potentially $27,000 for a National Transformation Fund investor. More significantly, the framework introduces a two-tier passport system with initial five-year validity, renewable to ten years only upon demonstrating compliance with residency requirements.

Implementation remains uncertain despite political commitments from regional leaders. The agreement requires ratification by at least five participating states' parliaments before taking effect 30 days after the final ratification. As of August 2025, the parliamentary processes continue across the region, with timing varying by jurisdiction.

Caribbean programs converge toward uniform standards

The proposed regional framework would eliminate one of the key differentiators among Caribbean CBI programs. Currently, four of the five programs require zero residency, with only Antigua and Barbuda mandating a modest five-day visit within five years. This landscape has created competition based on factors beyond residency, including investment thresholds, processing times, and passport strength.

St. Kitts and Nevis, operating the world's oldest CBI program since 1984, announced in June 2025 that it would end its 41-year tradition of no residency requirements. Prime Minister Terrance Drew indicated implementation "within weeks," though the program currently maintains its zero-residency status pending legislative changes. This shift by the market leader signals broader regional acceptance of residency requirements.

Dominica has historically positioned itself as the most affordable option while maintaining zero residency requirements. However, Prime Minister Roosevelt Skerrit pledged to introduce "new legislation within days" following the July 2025 agreement, indicating political will to implement changes despite potential market impacts.

St. Lucia continues to operate with no residency requirements, though it uniquely mandates interviews for all applicants—a requirement that can be satisfied virtually. The program's multiple investment options and strong due diligence have maintained its market position despite this additional step.

Antigua and Barbuda stands alone in currently enforcing residency requirements, with its five-day obligation strictly monitored. Non-compliance can result in citizenship revocation without refund, demonstrating how seriously the country takes its minimal presence requirement. This existing framework may provide a model for regional implementation.

International pressure drives regulatory evolution

The push toward residency requirements stems largely from international regulatory pressure, particularly from the Organisation for Economic Co-operation and Development (OECD) and the European Union. The OECD identifies "potentially high-risk" CBI schemes as those providing access to low personal income tax rates on offshore assets while requiring minimal physical presence. Most Caribbean programs, including Grenada's, meet both criteria.

Recent engagement between U.S. Treasury officials and Caribbean leaders has emphasized adherence to the "Six CBI Principles" agreed upon in February 2023. These principles focus on robust due diligence, information sharing, and program integrity. While not explicitly mandating residency requirements, the principles encourage "genuine links" between citizens and countries, language that supports physical presence obligations.

The European Union's approach has included both carrots and sticks. While Caribbean nations value visa-free access to the Schengen Area for their citizens, the EU has demonstrated willingness to suspend these privileges for countries whose CBI programs raise concerns. The addition of Vanuatu to the visa requirement list in 2022 sent a clear message about the potential consequences of inadequate program standards.

Financial sector access represents another pressure point. International banks increasingly scrutinize CBI citizens, with some institutions refusing accounts or services regardless of due diligence quality. Residency requirements may help address these concerns by demonstrating genuine connections beyond financial transactions.

Recent programmatic updates enhance integrity

Beyond residency considerations, Grenada's CBI program has undergone significant updates aimed at enhancing integrity and meeting international standards. The 2024 price increases raised the National Transformation Fund contribution to $235,000 for single applicants, aligning with regional minimum standards while generating increased revenue for national development.

Enhanced due diligence procedures now include mandatory interviews for all applicants aged 17 and above. While these can be conducted remotely, they add a personal element to the application process, allowing officials to assess applicants beyond paper documentation. This change addresses criticism about purely transactional relationships while maintaining the program's remote accessibility.

The clearance of historical application backlogs in 2024 improved processing times and program reputation. The Investment Migration Agency, rebranded from the Citizenship by Investment Unit, has streamlined operations to deliver decisions within 6-9 months for properly prepared applications. This efficiency maintains Grenada's competitive position despite increased scrutiny.

Enforcement actions have demonstrated serious commitment to program integrity. Eight applications were rejected in 2024-2025 for attempting to circumvent minimum investment requirements through unauthorized financing arrangements. One citizenship was revoked during this period, sending a clear message about zero tolerance for program abuse.

E-2 visa treaty benefits face new restrictions

Grenada's unique E-2 investor visa treaty with the United States has long distinguished it from other Caribbean CBI programs. However, recent changes have significantly altered this benefit's accessibility. The U.S. National Defense Authorization Act of 2023 introduced a three-year continuous domicile requirement before Grenadian citizens can apply for E-2 visas.

This change effectively eliminates the fast-track U.S. business immigration option that made Grenada particularly attractive to investors seeking American market access. The interpretation of "domicile" remains somewhat uncertain, potentially requiring more than mere physical presence to establish the necessary ties. This development has reduced one of Grenada's key competitive advantages while highlighting how citizenship benefits can change based on bilateral negotiations.

The E-2 treaty itself remains valuable for those willing to establish genuine Grenadian domicile. The visa allows renewable stays in the United States based on business investments, with no minimum investment threshold specified in the treaty. However, the three-year waiting period now required makes this pathway less attractive compared to direct U.S. investment options.

Special provisions address diverse applicant needs

While Grenada currently requires no residency, making exceptions unnecessary, the proposed regional framework includes provisions for special cases. Draft regulations suggest waivers for individuals over 80 years old, those with documented medical disabilities, and certain minors. These exceptions recognize that mandatory residency requirements can create genuine hardships for vulnerable populations.

The treatment of dependents remains uniform under both current and proposed frameworks. All family members, regardless of age or relationship, face identical requirements to the main applicant. This includes spouses, children under 30, parents and grandparents of any age, and unmarried siblings—one of the most generous dependent inclusions among global CBI programs.

For families with special needs members, the program's flexibility proves particularly valuable. Children with physical or mental disabilities can be included regardless of age if fully supported by the main applicant. The absence of residency requirements means these vulnerable family members need not travel or establish unfamiliar routines to maintain citizenship status.

Citizenship maintenance requires minimal ongoing compliance

Once obtained, Grenadian citizenship requires minimal ongoing compliance under current rules. No residency obligations, language requirements, or cultural knowledge tests apply to maintaining citizenship status. This differs markedly from naturalization pathways that may include ongoing integration expectations or periodic renewal requirements.

The primary ongoing obligation relates to real estate investments, which must be held for five years before sale to another CBI applicant. Early sale to non-qualified buyers could trigger citizenship review, though this relates to investment compliance rather than residency. National Transformation Fund contributors face no ongoing obligations once their citizenship is granted.

Passport renewal follows standard procedures without additional residency verification. Ten-year passports can be renewed through Grenadian diplomatic missions worldwide, maintaining the program's accessibility for globally mobile citizens. The proposed regional framework would alter this by linking passport renewal to residency compliance, creating new administrative requirements.

The grounds for citizenship revocation remain limited primarily to fraud, serious criminality, or actions prejudicial to state security. Grenada cannot revoke natural-born citizenship, and naturalized citizens enjoy strong due process protections. The absence of residency requirements means non-residence alone cannot trigger revocation under current rules.

Future outlook balances opportunity with uncertainty

The intersection of current flexibility and impending change creates a unique moment for prospective Grenada CBI applicants. Those who secure citizenship before new regulations take effect will likely be grandfathered under existing rules, avoiding future residency obligations. This temporal advantage may drive increased applications as investors seek to preserve maximum flexibility.

The implementation timeline remains fluid despite political commitments. Parliamentary ratification across five jurisdictions involves complex domestic processes that could extend well beyond initial projections. Some observers suggest full implementation may not occur until 2026, though others expect movement by late 2025.

Market dynamics will likely shift as residency requirements reshape the competitive landscape. Programs may differentiate through the specifics of their integration programs, the flexibility of their day-counting methods, or the robustness of their exception frameworks. Price competition may intensify as residency requirements level one aspect of the playing field.

For high-net-worth individuals, the strategic calculation involves weighing current certainty against future flexibility. While 30 days over five years appears modest, it represents a fundamental shift from zero obligations. For some, this change may redirect interest toward alternative programs, while others may view modest residency requirements as a reasonable trade-off for enhanced program sustainability and international acceptance.

Strategic implications shape investor decisions

The research reveals a program in transition, where current advantages face imminent transformation. Grenada's zero-residency framework has provided unmatched flexibility, allowing investors to secure Caribbean citizenship without lifestyle disruption. However, the proposed regional framework would introduce new obligations that, while modest by global standards, fundamentally alter the program's value proposition.

For investors evaluating options, timing has become critical. The window for securing citizenship under current rules may close within months, creating urgency for those who value maximum flexibility. The proposed requirements, while not onerous, introduce compliance obligations and potential penalties that did not previously exist.

The broader implications extend beyond individual investment decisions. The Caribbean's movement toward uniform standards reflects growing international pressure for "genuine links" between citizens and countries. This evolution may enhance program sustainability and international acceptance while reducing the pure optionality that has characterized these programs.

Tax planning considerations remain largely unchanged, with citizenship continuing to be distinct from tax residency. The territorial tax system and 183-day threshold provide clarity for international tax structuring. However, enhanced information exchange and regulatory scrutiny require careful compliance across all relevant jurisdictions.

The investment landscape will likely evolve as programs adapt to new requirements. Real estate markets may see increased activity if residency requirements drive more investors to establish physical presence. Integration programs may create new service industries around cultural orientation and civic education. The two-tier passport system could introduce administrative complexities requiring professional support.

For those committed to Caribbean citizenship, Grenada retains significant advantages including visa-free access to China, the E-2 treaty potential, and strong due diligence standards. The proposed residency requirements, while marking a dramatic shift from current policy, remain modest compared to global alternatives. Success will require adapting investment strategies to acknowledge that citizenship increasingly involves more than financial transactions—it requires at least minimal physical engagement with the nation offering its most precious asset: membership in its national community.