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


 
 

SVILA E-Discovery

March 5, 2013

Stewart 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 More

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

March 5, 2013

IN 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

Client Update: Valentine’s Day @ the Workplace

February 14, 2013

Yellow diamonds in the light And we’re standing side by side As your shadow crosses mine What it takes to come alive It’s the way I’m feeling I just can’t deny But I’ve gotta let…

Read More

Client Update: Nova Scotia Contaminated Site – Ministerial Protocols

January 11, 2013

INTRODUCTION On December 6, 2012, The Nova Scotia Department of Environment (NSE) released Draft Ministerial Protocols (the “Draft Protocols”) related to contaminated sites. The release of the Draft Protocols has been eagerly anticipated. The adoption…

Read More

Client Update: Changes to the Rules of the Supreme Court

January 3, 2013

Recent changes to the Rules of the Supreme Court, 1986, SNL 1986, c 42, Sch D On December 14, 2012, several changes were made to the Rules of the Supreme Court. These changes include: who may act…

Read More

Doing Business in Atlantic Canada (Winter 2012) (Canadian Lawyer magazine supplement)

January 1, 2013

IN THIS ISSUE: Putting Trust in your Estate Planning, by Paul Coxworthy and Michael McGonnell The Risks, for Insurers in Entering Administration Services Only (ASO) Contracts, by Tyana Caplan Angels in Atlantic Canada, by Allison McCarthy, Gavin Stuttard and Adam Bata…

Read More

Client Update – Changes to the Human Rights Legislation in Newfoundland and Labrador

July 13, 2010

Bill 31, An Act Respecting Human Rights, came into force on June 24, 2010 replacing the Human Rights Code (the “Code”). For more information, please download a copy of this client update.

Read More

Atlantic Business Counsel – December 2009

December 18, 2009

IN THIS ISSUE Expanded Fines and Penalties for Environmental Offences: The New Federal Environmental Enforcement Act Spam about to be Canned? Preparing a Business for Sale Business Disputes Corner – Place of Arbitration and Selected…

Read More

Client Update – General Damage Cap Upheld By the Nova Scotia Court of Appeal

December 15, 2009

The Nova Scotia Court of Appeal has unanimously upheld the province’s legislative limits on general damage recovery for “minor injuries”. Today’s decision, authored by Chief Justice Michael MacDonald, completely affirms the January 2009 decision of…

Read More

Client Update – New Planning Opportunities For ULCs

December 4, 2009

The Canada Revenue Agency (“CRA”) announced helpful administrative positions concerning the new rules under the Fifth Protocol to the Canada-US Income Tax Convention, 1980 which will come into effect on January 1, 2010. The CRA…

Read More

Search Archive


Scroll To Top