[St. George’s, Grenada] Grenada’s citizenship by Investment Unit (CBIU) hopes to increase contributions to the country’s National Transformation Fund by increasing the commissions paid to marketing agents, whose clients select the option when investing in Grenada’s citizenship.
Contributing to the National Transformation Fund is one of three ways in which individuals are allowed to acquire citizenship through the Grenada Citizenship by Investment Programme. Purchasing government approved real estate or making a significant contribution to the country are the other two options.
Since the reintroduction of the Citizenship by Investment Programme in 2013, the National Transformation Fund has been the most sought-after avenue through which investors have acquired citizenship from the programme. In 2017 and 2018, citizenship applications for the National Transformation Fund accounted for 63 and 68 percent respectively of the total citizenship applications received by the CBIU.
However, since the introduction of the $220K price point for share and fractional freehold property in 2019, the once popular contribution option has paled in performance to its historic figures. By the end of the third quarter in 2019, citizenship applications attributed to the National Transformation Fund accounted for just 53 percent of the total applications received by the CBIU.
Though government receives a contribution as part of all citizenship sales achieved from an investment in approved real estate, the dollar value is significantly less than what it receives for citizenship sales from contributions to the National Transformation Fund.
To incentivize marketing agents to promote the National Transformation Fund, Government has been paying a commission of $15,000 on completed citizenship applications. However, in an effort to stimulate greater citizenship sales from contributions to the Fund, higher commissions are now being offered to marketing agents.
Agents, who generate between one and 60 sales a year will receive $25,000 for each completed sale. For those, who achieve between 61 and 80 sales, a commission of $30,000 will be paid for each sale; while those, who achieve 81 sales or more, will receive $35,000 for each sale.
The new rates were implemented on April 1st and will remain in effect for one year. The CBIU has indicated that it will evaluate the performance of the NTF following the increase in commissions to determine whether the change should be retained or amended.