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


 
 

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

Client Update: To B or Not To B? Potential Changes to PEI Auto Insurance

June 28, 2013

Significant changes may be coming to the standard automobile policy in PEI, including increases to the accident benefits available under Section B and an increase to the so-called “cap” applicable to claims for minor personal…

Read More

Client Update: Special Project Orders the next milestone for Muskrat Falls progress

June 21, 2013

On June 17, 2013, pursuant to the recently amended Section 70 of the Labour Relations Act for Newfoundland and Labrador (“NL”), the Government of Newfoundland and Labrador issued three Special Project Orders (“SPOs”) in respect of the…

Read More

Client Update: Hold your breath, SCC rules on random alcohol testing

June 17, 2013

On June 14, 2013, the Supreme Court of Canada (“the Court”) released the decision that employers across the country were waiting for. In CEP Local 30 v. Irving Pulp & Paper Ltd., 2013 SCC 34, a…

Read More

Client Update: Newfoundland and Labrador Aboriginal Consultation Policy

June 14, 2013

The Government of Newfoundland and Labrador (“NL”) has recently released its “Aboriginal Consultation Policy on Land and Resource Development Decisions” (the “Policy”). A copy of the Policy can be accessed here. This new Policy is the…

Read More

Spring 2013 Labour & Employment Atlantic Canada Legislative Update

June 11, 2013

The following is a province-by-province update of legislation from a busy 2013 spring session in Atlantic Canada. Watching these developments, we know the new legislation that has passed or could soon pass, will impact our…

Read More

Client Update: Jury Duty – Time to Think Twice

June 6, 2013

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 More

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

June 2, 2013

IN 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 More

Client Update: The Personal Health Information Act (PHIA) is coming…..

May 27, 2013

DOES 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 More

Search Archive


Scroll To Top