Provincial Non-Resident Deed Transfer Tax Guidelines
On April 8, 2022, the Nova Scotia Department of Finance and Treasury Board (Provincial Tax Policy and Administration Division) released the Provincial Non-Resident Deed Transfer Tax Guidelines (“Guidelines”) with respect to the recently introduced Provincial Non-Resident Deed Transfer Tax (“PDTT”), which came into effect April 1, 2022.
The PDTT is a five per cent tax levied on the greater of the purchase price or the assessed value of the property and applies to all residential properties or a portion of the property that is deemed residential, including vacant land classified as residential.
The Guidelines provide general information with respect to the following:
- how the PDTT is applied;
- defining ‘residential property’ and ‘property ownership’;
- defining to whom the PDTT applies to/who is exempt;
- defining ownership types (e.g. resident versus non-resident) and ownership by individuals, corporations, and trusts;
- how the PDTT is calculated;
- how the PDTT applies to non-residents moving to Nova Scotia;
- the PDTT Tax Form submission; and
- paying the PDTT.
The following deed transfers are exempt from the PDTT:
- transactions with an Agreement of Purchase and Sale dated before April 1, 2022;
- transactions only including residential property (or a portion of a residential property) with more than three dwelling units;
- residential property with three or fewer dwelling units being transferred to grantees where 50 per cent or more of the ownership is by residents of Nova Scotia or if the grantees are not residents but they intend to move to Nova Scotia within six months of the property transfer;
- property being transferred between spouses/common-law partners or former spouses/common-law partners (if the transfer is to divide marital or jointly-held assets);
- residential property being transferred to a foreclosing mortgagee or from an executor to an eligible beneficiary under a will (eligible beneficiary is a spouse, common-law spouse, child, grandchild, parent or sibling of the testator or a child or grandchild of the testator’s spouse or common-law spouse);
- if all of the following three factors are true: (i) deeds being registered to confirm, correct, modify, or supplement a deed previously given; (ii) the consideration does not exceed $1.00; and (iii) the deed does not include more property than the previous deed.
- if the grantee is a registered charity and the residential property for which the deed is being transferred is not to be used for commercial, industrial, or other business purposes.
All property transactions, regardless of residency status and property type, require the online Provincial Deed Transfer Tax Form to be completed. Certain transactions may require an affidavit with additional information about the grantee, depending on if the grantee is an individual, corporation, or persons acting as a Trustee.
Provincial Non-Resident Property Tax
The Finance and Treasury Board Minister, Allan MacMaster, introduced the Financial Measures (2022) Act (“Act”) on April 8, 2022. The proposed Act will establish the Provincial Non-Resident Property Tax which also took effect April 1, 2022. The Provincial Non-Resident Property Tax is an annual tax of $2.00 per $100.00 of the property’s assessed value, as determined by the Property Valuation Services Corporation.
We will provide a more detailed update once the Act has been finalized.
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.
Mark Tector and Ben Currie While there have been a number of arbitration decisions on the subject, Parmar v Tribe Management Inc., 2022 BCSC 1675 appears to be the first reported civil court decision to…Read More
Sadira Jan, Dave Randell, and James Gamblin Nova Scotia (“NS”) and Newfoundland and Labrador (“NL”) are positioned to become international leaders in offshore wind and green hydrogen. Each province has expansive offshores areas, abundant wind…Read More
Kevin Landry and Nikolas Shymko The Cannabis Act came into force on October 17, 2018, putting in place framework for controlling the sale, possession, production and distribution of cannabis. The Cannabis Act requires the Minister…Read More
Brendan Sheridan and Brittany Trafford. Many events and workplaces started to feel more normal over the summer as we emerged from over two years of restrictions and COVID-19 pandemic precautions. However, as people line up…Read More
By Level Chan and Shaniqwa Thomas The Canadian Association of Pension Supervisory Authorities (CAPSA) has extended its deadline for submissions to October 14, 2022 on the following draft guidelines: Approach to Risk Management Guideline; Environmental,…Read More
G. Grant Machum and Ben Currie On Tuesday, September 13, 2022, Prime Minister Justin Trudeau declared a federal holiday on Monday, September 19, 2022 to honour the death of Queen Elizabeth II. Minister of Labour…Read More
Kevin Landry, Matt Jacobs Shareholder agreements are a key part of corporate governance. Nova Scotia is unique from other Canadian jurisdictions because the Companies Act (Nova Scotia) doesn’t contemplate ‘Unanimous Shareholder Agreements’ as other corporate…Read More
By Kathleen Leighton Last year, Canada boasted record admissions of permanent residents, despite the COVID-19 pandemic, and has an even more ambitious target for 2022 – namely, to welcome 431,000 permanent residents to the country.…Read More
By Brendan Sheridan While COVID-19 restrictions have been easing throughout Canada for the past several months, many foreign workers and international students are still feeling its effects. In particular, individuals who were on post-graduate work…Read More