A new provincial deed transfer tax and property tax regime for non-residents of Nova Scotia
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.
By Perlene Morrison, K.C. Municipalities are required to pass code of conduct bylaws in accordance with section 107 of the Municipal Government Act (the “MGA”). Subsection 107(1) of the MGA specifically states that a municipality’s…Read More
By Sheila Mecking and Kathleen Starke On August 23, 2023, the Ontario Superior Court (“ONSC”) upheld a complaints decision which ordered a psychologist to complete a continuing education or remedial program regarding professionalism in public…Read More
By Dante Manna As we advised in a previous podcast, all federal employers with at least ten employees have been subject to the Pay Equity Act  (“PEA”) and Pay Equity Regulations  (“Regulations”) since…Read More
By Nancy Rubin, K.C. Environment and Climate Change Canada (ECCC) recently published a draft of the Clean Electricity Regulations (CER). The proposed Regulations work toward achieving a net-zero electricity-generating sector, helping Canada become a net-zero…Read More
By Stephen Penney & Matthew Raske In the recent decision Index Investment Inc. v. Paradise (Town), 2023 NLSC 112, the Supreme Court of Newfoundland and Labrador validated the Town of Paradise’s decision to rezone lands…Read More
By Sara Espinal Henao Immigration, Refugees and Citizenship Canada (“IRCC”) has announced a promising new temporary measure that allows foreign workers to study for a longer duration without a study permit, opening the door for…Read More
By Brendan Sheridan The Government of Canada recently announced a number of aggressive immigration measures to help attract top talent to Canada in high-growth industries in an effort to fuel innovation and drive emerging technologies.…Read More
By Daniela Bassan, K.C. All stakeholders in the legal profession, including litigators, have a shared interest in promoting environmental, social, and governance (ESG) pathways towards building a greener society. It is crucial for litigators to…Read More
By Kimberly Bungay and Colton Smith Since June of 2019, corporations formed under the Canada Business Corporations Act have been required to prepare and maintain a register of individuals with significant control (an “ISC Register”).…Read More
By Kim Walsh and Olivia Bungay Compliance with Russian sanctions goes beyond complying with Canada’s Russia Regulations. Canadian individuals and businesses may be unaware of several other sanctions regimes that apply to them. In conjunction…Read More