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.
Archive
David Randell, Sadira Jan, Robert Grant, K.C., Greg Moores, G. John Samms, and James Gamblin The recent tabling of federal legislation is an important step for offshore wind development in the offshore areas of Nova…
Read MoreNewfoundland and Labrador adopts virtual Alternate Witnessing of Documents Act – for good this time!
By Joe Thorne and Megan Kieley Background During the COVID-19 public health emergency order in Newfoundland and Labrador, the government passed the Temporary Alternate Witnessing of Documents Act, which (as the name implies) temporarily permitted…
Read MoreBy Daniela Bassan, K.C. Daniela Bassan, K.C. is a Partner and Practice Group Chair at the law firm of Stewart McKelvey (Canada) where she focuses on intellectual property and complex, multi-jurisdictional dispute resolution. The premise…
Read MoreBy Conor O’Neil and Maria Cummings On May 9, 2023, two bills were introduced in the New Brunswick Legislature that could have material affects on the construction industry. Bills 41 and 42, of the current…
Read MoreAuthor Sara Espinal Henao, an Immigration Lawyer in our Halifax office, will be speaking on a related panel, Labour Market Impact Assessments Overview and Current Trends, at the upcoming CBA Immigration Law Conference in Ottawa,…
Read MoreAuthor Brendan Sheridan, an Immigration Lawyer in our Halifax Office, will be running a related webinar on May 30, 2023, Avoiding immigration bloopers: A webinar for the film & television industry, in partnership with Screen…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 12 By Charlotte Henderson Privacy and confidentiality requirements are some of the most important responsibilities of organizations today. An organization’s ability to properly manage information,…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 12 By Hilary Newman & Jacob Zelman A non-disclosure agreement, or “NDA”, is a legal contract in which two or more persons agree to keep the…
Read MoreBy Graham Haynes & Isaac McLellan Introduction The Canadian federal budget was unveiled on Tuesday, March 28, 2023 (“Budget 2023”)1 , and proposes significant changes to the General Anti-Avoidance Rule (the “GAAR”) in Canadian tax…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 12 By Scott Campbell, Jennifer Taylor, Folu Adesanya A long-standing dispute over governance practices at the Cape Breton University Board of Governors was recently resolved…
Read More