Skip to content

Provincial Non-Resident Deed Transfer Tax Guidelines

Brian Tabor, QC and Eyoab Begashaw

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.

Exemptions

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.

Process

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.

SHARE

Archive

Search Archive


 
 

Atlantic Employers’ Counsel – Fall 2013

November 19, 2013

CHANGES, CHANGES AND MORE CHANGES: KEEPING UP WITH THE TEMPORARY FOREIGN WORKER PROGRAM These days, Canada’s Temporary Foreign Worker Program (“TFWP”) is more top of mind than ever for Canadian employers. This is in part…

Read More

Client Update: Time’s Ticking: Not-for-Profit Corporations

October 17, 2013

By October 17, 2014 existing not-for-profit corporations incorporated under Part II of the Canada Corporations Act (the “Old Act”) are required to be continued under the new Canada Not-for-Profit Corporations Act (the “New Act”) or face the possibility of automatic administrative…

Read More

Doing Business in Atlantic Canada (Fall 2013)(Canadian Lawyer magazine supplement)

October 9, 2013

IN THIS ISSUE: Reasonable Cause: A necessary prerequisite for random alcohol testing policies by Mark Tector, Steve Carpenter, CHRP, Melissa Everett Withers, Ruth Trask Business Succession: Why is it critical? by Richard Niedermayer, TEP Privacy Please: Nova Scotia brings in new…

Read More

Client Update: Nova Scotia Amends Foreign Worker Rules to Exempt Some Recruiters and Employers From Licensing and Registration Requirements

September 18, 2013

On May 19, 2011, Nova Scotia’s Labour Standards Code was amended to protect foreign workers from exploitation by recruiters and employers. These amendments imposed a requirement for third-party recruiters to obtain a license from the Province to…

Read More

Client Update: Summary of Pender vs. Squires, 2013 NLCA 37

September 10, 2013

Facts This appeal arose from a decision which held that the Dominion of Canada General Insurance Company (“Dominion”) has a duty to defend Larry and Lona Hannam and their teenage son Jordan in an action…

Read More

Atlantic Employers’ Counsel – Summer 2013

August 8, 2013

DUE DILIGENCE Generally, occupational health and safety legislation in Atlantic Canada, like other jurisdictions, requires employers to take reasonable precautions to ensure the health and safety of workers in their workplace. Read More INCIDENT RESPONSE…

Read More

Client Update: Cyber-safety Act comes into effect for Nova Scotia

August 8, 2013

The Cyber-safety Act (“the Act”), excepting Part V (that part amending the Safer Communities and Neighbourhoods Act), was proclaimed August 6, 2013 and is now in effect. As discussed in our May 17, 2013 Client Update and our HRLaw blog The business case…

Read More

Client Update: The “historic trade-off” prevails

August 7, 2013

The Supreme Court of Canada has now released the much anticipated decision in the case of Marine Services International Ltd. v Ryan Estate, 2013 SCC 44. In doing so, the high court has signaled, at least…

Read More

Client Update: A judge’s guide to settlement approval and contingency fee agreements in P.E.I.

July 25, 2013

In Wood v. Wood et al, 2013 PESC 11, a motion pursuant to Rule 7.08 of the Rules of Civil Procedure for court approval of a settlement involving a minor, Mr. Justice John K. Mitchell approved the settlement among the…

Read More

Client Update: Directors will be liable for unpaid wages and vacation pay

July 8, 2013

Clients who sit on boards of corporate employers should take note of recent amendments made to New Brunswick’s Employment Standards Act (the “ESA”) which could increase their exposure to personal liability in connection with claims advanced by…

Read More

Search Archive


Scroll To Top