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
The integrity of the jury system has become a pressing topic for our courts of late, with articles about jury duty frequently appearing front and centre in the press. The recent message from the Nova…
Read MoreIN THIS ISSUE: Cloud computing: House to navigate risky skies by Daniela Bassan and Michelle Chai Growing a startup by Clarence Bennett, Twila Reid and Nicholas Russon Knowing the lay of the land – Aboriginal rights and land claims in Labrador by Colm St. Roch Seviour and Steve Scruton Download…
Read MoreDOES IT APPLY TO YOU? On June 1, 2013, the Personal Health Information Act (PHIA) comes into force in Nova Scotia. If you are involved in health care in Nova Scotia, you need to know whether PHIA…
Read MoreEDITOR’S COMMENT This edition of Atlantic Employers’ Counsel focuses on key areas of employment standards in Atlantic Canada. Employment standards legislation outlines the rights and obligations of employees and requirements that apply to employers in…
Read MoreNEW TORT OF CYBERBULLYING On May 10, 2013 the Nova Scotia legislature passed the Cyber-safety Act (Bill 61). When this bill comes into force, it will give rise to a new tort of cyberbullying that…
Read MoreGOVERNMENT ACTION In the Economic Action Plan 2010, the Harper Government committed to bring greater clarity to how mortgage prepayment penalties were calculated. As part of the commitment, on February 26, 2013 the government released…
Read MoreSTEWART MCKELVEY WELCOMES BACK WANDA DOIRON AS MANAGER, CORPORATE SERVICES – NOVA SCOTIA You might remember Wanda from her time in our Corporate Services group from 2002 to 2008. Since then, she has worked in-house…
Read MoreREASONABLE PEOPLE DOING QUESTIONABLE THINGS: CONFLICTS OF INTEREST AND JUST CAUSE Can a unionized employee moonlight in his off hours to earn some extra money by doing the same work he does for his daytime…
Read MoreStewart McKelvey’s Vision Improving Legal Analysis (SVILA*) is an e-discovery project and litigation management tool. For more information on our e-discovery services, download the SVILA e-discovery document.
Read MoreIN THIS ISSUE: A New Brunswick business lawyer’s perspective by Peter Klohn Why Canada’s immigration rules matter to your business by Andrea Baldwin Financing Energy Projects during the Project Lifecycle by Lydia Bugden, Colm St. Roch Seviour and Tauna Staniland Download…
Read More