Grenada International Trust Formation: Key Steps for Offshore Asset Protection

Thinking about a Grenada offshore trust to protect your savings and pass wealth to your family? Start with one key fact. Since 31 December 2018, no new international trusts can be created under Grenada's law. You can still reach the same goals, though: solid asset protection, smoother estate planning, and long-term wealth preservation in a stable place. This guide shows you what changed, what it means if you set one up before 2019, and which jurisdictions now do the job instead.

Key Takeaways

• New international trusts on the island have been invalid since 31 December 2018.
• Trusts established before then were preserved, but they carry annual reporting duties and must share names with the tax authority on request.
• Strong alternatives are still open in Nevis, the Cook Islands and Belize.
• No structure removes your duty to report and pay tax at home.

What Is a Grenada International Trust?

A trust is a legal arrangement. One person or entity, the settlor, hands assets to a manager. That manager holds them for the people you name, the beneficiaries.

The island's version was known as an international trust. It was built for foreigners with assets held outside the country. The International Trusts Act (Cap. 152C), passed in 1996, set the rules.

That door is now shut. In December 2018, Parliament passed Act No. 20 of 2018. It added section 2A, in force from 31 December 2018. The rule is simple. No person may create an international trust after that date. Any attempt is invalid.

The island once pitched itself as an international financial centre. In 2018, under EU pressure over harmful tax practices, the government repealed its international companies, insurance and offshore banking laws. The trusts law was treated differently: it was amended, not repealed, and the government said trusts that already existed were preserved (government statement, December 2018). Some 2021 press reports still listed the trusts law among four laws to be repealed by 31 December 2021 (NOW Grenada), but we found no repeal Act for it among the laws Parliament has published.

The same reform ended international business companies (IBCs). Act No. 17 of 2018 repealed that law, and a 2021 amendment let IBCs in good standing carry on under the ordinary Companies Act. If you need a company rather than a trust, see our company formation guides.

Key Facts at a Glance

Why Did People Choose Grenada, and Why Did It Close?

Grenada offered an English common law system, a dedicated trusts Act, and the usual offshore features. Then outside pressure met low demand. The EU flagged the island's international financial laws as harmful tax practices, and the government acted on all four of them. Demand was thin, too. GARFIN's 2019 annual report showed that no offshore trust companies held a licence under the trusts law, as reported in March 2021.

GARFIN, the Grenada Authority for the Regulation of Financial Institutions, is the island's regulator for non-bank finance. Its list of regulated sectors covers credit unions, insurers, pensions, money services, betting companies and virtual assets. Trusts are not on that list, so no local body is set up to supervise new trusts. Families still establish trusts under favorable trust laws in the region. They just do it elsewhere now.

What If You Set One Up Before 2019?

It isn't void. The 2018 amendment stopped new trusts but preserved existing ones. Since the 2014 amendment, though, it carries these duties:

• File an annual ownership update with the Registrar by 1 April, or risk being struck off.
• Keep accounting records, with contracts and invoices, for at least five years.
• Give the Tax Co-operation Authority the names of the people who set it up or benefit from it, when asked.

Ask a lawyer to check its current legal status. Moving it to a different jurisdiction may make sense, but whether you can depends on the terms of your trust deed.

What Asset Protection Did the Old Law Offer?

These features applied to trusts made before 2019. They come from older summaries of the Act, so treat them as background, not legal advice.

• Long life: up to 120 years.
• High bar for claims: to undo a transfer, a creditor had to prove intent to defraud and that the assets were undervalued.
• Short window: claims had to come within two years of the transfer.
• Heirship shield: foreign forced-heirship rules could not void the trust, and a foreign court order seeking that result was not followed.
• Spendthrift terms: you could limit payouts to a beneficiary who overspends.
• Protector: an overseer could appoint and remove trustees.
• Flee clauses: the deed could let the trust move to another jurisdiction if set events happened.

No asset protection tool makes your wealth untouchable. Courts look hard at transfers made after trouble starts. Trusts protect you best when you set them up early and run them properly.

Who's Involved in a Trust?

• Settlor: you. You fund it and set its rules in the trust deed. Most settlors also write a letter of wishes.
• Trustee: holds legal ownership of the assets and runs it for the beneficiaries. In Belize, a professional licensed trustee based there must be appointed.
• Protector: an optional watchdog, often a relative or lawyer, who can appoint or remove trustees.
• Beneficiaries: the people who benefit from the assets. In Nevis and Belize, the settlor can be one of them.

Trust assets can include many investment options, from shares to property. A trust can also own legal entities, such as a company, and hold accounts with offshore banking services anywhere in the world.

How Do You Set Up a Trust Today If You Have Ties to Grenada?

You can't form a new one under local law. But establishing a trust in an open jurisdiction follows a clear path:

1. Check what you hold. If you already have one from before 2019, start with a legal review.
2. Set your goals. Do you want to protect assets from future claims, plan who inherits, or both?
3. Pick a jurisdiction. Compare the options in the table further down this page.
4. Pass due diligence. Expect to show your passport, proof of address and proof of your source of funds. This is standard anti-money laundering practice.
5. Sign the trust deed. Your provider drafts it. It sets out the purposes of the trust and who can benefit.
6. Move assets to the trust early. Transfers made after a claim arises are the easiest to challenge.
7. Set up your reporting at home before the first deadline.

Once the trust is established, your provider keeps the trust's records and handles the activities of the trust day to day.

What Does It Cost, and How Long Does It Take?

A new trust under Grenada's law has no price, because it can't be formed. Here's what the alternatives involve, based on our own guides:

• Cook Islands: about US$15,000 in total, with yearly fees usually US$6,000 or less. The timeline depends on the trustee and your assets, and we confirm it for your case.
• Nevis: setup usually takes 1 to 2 weeks. Trustee fees vary by trustee and asset profile, and we confirm them for your case.
• Belize: trustee fees and timeline vary by trustee and asset profile, and we confirm them for your case.

Our fee for setting up an offshore trust for clients with ties to Grenada is US$15,000. Your total also covers legal and administrative work, such as drafting the deed and paying yearly service fees.

A Trust Doesn't Cancel Your Tax Bill

How Grenada taxes a pre-2019 international trust is a question for a Grenada adviser. Whatever the answer, it never changed what you owe at home. Your home country still taxes you under its own rules, including any inheritance tax. A trust is not a tool for tax avoidance.

Reporting is now global. Under the OECD's Common Reporting Standard, offshore financial institutions share account data with partner tax offices. Grenada began these exchanges in 2018. In its 2022 peer review, the OECD found fundamental gaps in how the island checks that financial institutions apply the reporting rules (OECD peer review). It also has a Model 1 FATCA agreement with the United States.

If you're a US person, expect these filings:

• Form 3520 for transfers to, or payouts from, a foreign trust.
• Form 3520-A, the yearly return when a US person is treated as the owner.
• FinCEN Form 114 (FBAR) for foreign accounts.

UK, Canadian and EU residents face their own reporting rules. Work with an international tax adviser who knows your tax jurisdiction. Good tax planning keeps you compliant.

A trust gives you a fair level of privacy from the public. Expect confidentiality, not secrecy from tax authorities.

Which Risks and Limits Should You Weigh?

• Legal grey area: whether the trusts law was later repealed is unclear, so a pre-2019 trust needs a legal review.
• No local market: no licensed trust companies existed on the island by 2019.
• Timing: transfers made to beat a known claim can be undone, and a creditor may then claim assets you thought were safe.
• Bank checks: expect detailed questions about any onshore and offshore entities in your structure.
• Penalties: missing a filing at home can bring heavy fines.
• Cost: a good structure costs real money every year.

How Does Grenada Compare With Other Trust Jurisdictions?

The best offshore jurisdictions for you depend on your goals and budget. Here's how the main options compare:

Our Nevis guide explains that a creditor holding a US court judgment must start again there. That takes time, money and a bond, which deters weak claims. It doesn't make a claim impossible.

Clients also ask us about trusts in Antigua and Barbuda, Dominica, the Bahamas, the BVI and St. Lucia. For other options, see our New Zealand trust guide or all trusts and foundations.

How Are Grenada Offshore Trusts Changing in 2026?

The trusts law itself hasn't changed since 2018. The big shift is in investment migration. Many people who look at the island hold, or want, its passport through citizenship by investment (CBI).

In September 2025, five eastern Caribbean governments signed the agreement creating ECCIRA, a regional regulator for these passport programs. In July 2026, a bill to amend Grenada's CBI law added a rule that new citizens spend 30 days in the country within five years. On 21 August 2026, the national CBI agency's Circular No. 2 of 2026 put that rule on hold until ECCIRA is running and member states agree a start date. At that point ECCIRA was not yet operating (IMI Daily).

Other routes exist too, from St. Kitts and Nevis citizenship to residency by investment in other countries.

What We've Learned Since 1996

Since 1996, we've seen the same pattern in setting up trusts. Clients rarely lose protection because of the law. They lose it by waiting too long, or by missing a filing at home. The people who protect their assets best act early. A second citizenship gives you global mobility, but it doesn't protect your wealth on its own. Pair it with a well-run trust in a jurisdiction that is still open.

What We Expect Next

As ECCIRA rolls out shared vetting, we expect banks and service providers to ask passport holders for more source-of-funds proof. Families seeking both a passport and a trust should plan for longer checks. This is our forecast, not a certainty.

Frequently Asked Questions

• How much does a Grenada offshore trust cost?

  You can't buy a new one. New international trusts in Grenada have been invalid since 31 December 2018. For similar protection elsewhere, our Cook Islands trust costs about US$15,000 in total, with yearly fees usually US$6,000 or less. Nevis and Belize fees vary by trustee and asset profile, and we confirm them for your case.

• How long does it take to set up a Grenada offshore trust?

  It can't be set up at all, because new trusts have been invalid since 31 December 2018. A Nevis trust usually takes 1 to 2 weeks. Cook Islands and Belize timelines depend on the trustee and your assets, and we confirm them for your case.

• Can I still create a new international trust in Grenada?

  No. Section 2A, added by Act No. 20 of 2018, says no person may create an international trust after 31 December 2018. Any such trust is invalid.

• What happens to a Grenada trust created before 2019?

  It isn't void. The government said the 2018 change preserved existing trusts. Since 2014, a registered trust must file an annual ownership update by 1 April, keep accounting records for five years, and give the Tax Co-operation Authority the names of settlors and beneficiaries on request. Get a legal review of its current status.

• Can creditors break a Grenada offshore trust?

  For trusts made before 2019, older summaries of the Act say a claimant had to prove intent to defraud and that the assets were undervalued, within two years of the transfer. No trust is unbreakable. Transfers made after a claim arises, or a trust that isn't run properly, can still be challenged.

• Can a pre-2019 Grenada trust be moved to another jurisdiction?

  Possibly. It depends on the trust deed, such as a clause that lets the trustee change the governing law, and on the rules of the jurisdiction receiving it. Get legal advice before moving any assets.

• Do I have to report a Grenada offshore trust to my home tax authority?

  Yes, in most cases. Your home tax rules still apply. US persons generally file Form 3520 and, if treated as the owner, Form 3520-A, plus an FBAR for foreign accounts. Check your own country's rules with a tax adviser.

• Does Grenada share financial account information with other countries?

  Yes. Grenada has exchanged account data under the OECD's Common Reporting Standard since 2018, and it has a Model 1 FATCA agreement with the United States.

• Is Grenada on the EU tax blacklist or the FATF grey list?

  No. Grenada was on neither EU list in the February 2026 update, and it was not under FATF increased monitoring in June 2026. Belize, one of the alternatives, is on the EU grey list.

• Who regulates financial firms in Grenada?

  GARFIN, the Grenada Authority for the Regulation of Financial Institutions, regulates the non-bank financial sector, including insurers, credit unions, pensions, money services and virtual asset businesses. Trust business is not among its listed sectors.

• What documents do I need to set up an offshore trust?

  Expect to provide your passport, proof of address and proof of the source of your funds, plus details of the assets you plan to transfer. Your provider then drafts the trust deed, which sets out its purposes and beneficiaries.

Protect Your Wealth Where the Law Still Works

A trust under Grenada's law is no longer an option, but your goals still are. A well-run trust in Nevis, the Cook Islands or Belize can give you asset protection, a clear plan for your heirs, and real diversification, with full reporting at home. Our consultancy services help you pick the right home for your trust and set it up properly. Book a consultation today to get started.