Skip to content

A new provincial deed transfer tax and property tax regime for non-residents of Nova Scotia

Brian Tabor, QC and Eyoab Begashaw

Effective April 1, 2022, the Province of Nova Scotia announced that it will be implementing new property taxes impacting non-resident property owners. As a part of the 2022-2023 provincial budget, the Province of Nova Scotia is introducing the Nova Scotia Non-Resident Property Tax and Non-Resident Provincial Deed Transfer Tax.

The province has not provided comprehensive details, but has made the following information available regarding the taxes:

Nova Scotia Non-Resident Property Tax

  • The non-resident property tax will be calculated at $2 per $100 of assessed value and is effective April 1, 2022.
  • If housing owned by a non-resident is rented out for twelve (12) months or longer, then they will not have to pay the tax as they are providing homes for Nova Scotians.
  • If a property has multiple owners, an exemption from this tax is provided if fifty per cent (50%) or more of the owners are residents of Nova Scotia.

Non-Resident Provincial Deed Transfer Tax

  • Residential property purchasers who are non-residents of Nova Scotia will be required to pay a deed transfer tax rate of five per cent (5%).
  • All purchasers of residential properties who are residents of Nova Scotia are exempt from the non-resident deed transfer tax.
  • If a purchaser is planning to move to Nova Scotia to live and buys a home, the purchaser will be exempt from the deed transfer tax – usually within six (6) months.

Key details are yet to be provided leaving many questions regarding the scope of these taxes unanswered. Legislation is expected to be introduced in the Financial Measures Act 2022 (“FMA”) addressing these changes. The FMA should provide further clarity on considerations such as what constitutes a residential property, a resident and a non-resident, and payment, collection and reimbursement mechanisms.

We will provide a follow-up thought leadership piece as details become available.


This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact a member of our Real Property group.

 

Click here to subscribe to Stewart McKelvey Thought Leadership.

SHARE

Archive

Search Archive


 
 

Appeal Courts uphold substantial costs awards for regulators

May 22, 2024

By Sean Kelly & Michiko Gartshore Professional regulators can incur substantial costs through discipline processes. These costs are often associated with investigations, hearings as well as committee member expenses and are an unfortunate by-product of…

Read More

Less than two weeks to go … Canada Supply Chain Transparency Reports are due May 31st

May 21, 2024

By Christine Pound, ICD.D., Twila Reid, ICD.D., Sarah Dever Letson, CIPP/C, Sheila Mecking, Hilary Newman, and Daniel Roth Introduction The first reports under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the…

Read More

Court upheld municipality’s refusal to disclose investigation report

May 1, 2024

By Sheila Mecking and Sarah Dever Letson A recent decision out of the Court of King’s Bench of New Brunswick,[1] upheld the Municipality of Tantramar’s decision to withhold a Workplace Assessment Report under section 20(1)…

Read More

Occupational Health and Safety sentencing decision – Nova Scotia

April 29, 2024

By Sean Kelly & Tiegan Scott Earlier this month, the Provincial Court of Nova Scotia issued its sentencing decision in R v The Brick Warehouse LP, 2024 NSPC 26, imposing a monetary penalty of $143,750 (i.e.,…

Read More

Canada 2024 Federal Budget paves the way for Open Banking

April 22, 2024

By Kevin Landry On April 15, 2024, the Canadian federal budget was released. Connected to the budget was an explanation of the framework for Canada’s proposed implementation of Open Banking (sometimes called consumer-driven banking). This follows…

Read More

Reset for renewables: Nova Scotia overhauls energy regulation and governance in advance of influx of renewable energy

April 5, 2024

By Nancy Rubin and James Gamblin The Government of Nova Scotia has embarked on a path to dramatically reshape the regulation and governance of the energy sector with the passage of Bill 404, the Energy…

Read More

An employer’s guide to human rights law in Atlantic Canada

April 2, 2024

By Kathleen Starke and Annie Gray Human rights landscape Human rights legislation prohibits discrimination in specific contexts, including employment and the provision of services. In all Atlantic Provinces, Human Rights Commissions are responsible for enforcing…

Read More

Recognizing subtle discrimination in the workplace: insights from recent legal cases

March 4, 2024

By Sheila Mecking and Michiko Gartshore Subtle discrimination can have a much stronger and longer effect on employees when not properly addressed. It can also result in costly consequences for an employer who does not…

Read More

Immediate changes to travel eligibility for citizens of Mexico

February 29, 2024

By Brittany Trafford and Brendan Sheridan Today Immigration, Refugees and Citizenship Canada (“IRCC”) has announced significant changes to the travel requirements for Mexican citizens. As of February 29, 2024 at 11:30p.m. Eastern Time, all electronic…

Read More

Updated guidance on business reporting obligations under Canada’s supply chain transparency legislation

February 23, 2024

By Christine Pound, ICD.D., Twila Reid, ICD.D., Sarah Dever Letson, CIPP/C, Hilary Newman and Daniel Roth Introduction As we reported on November 30, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains…

Read More

Search Archive


Scroll To Top