Nova Scotia Non-Resident Deed Transfer Tax Increases to 10%
The government of Nova Scotia has announced changes to the province's deed transfer tax for non-residents—including those from other parts of Canada. Currently, if you purchase a home in Nova Scotia and do not intend to become a resident within six months of the closing date, you are subject to an additional deed transfer tax of 5% on top of the base rate of 1.5% that residents pay, for a total of 6.5%.
Effective April 1st (no joke), the government will increase the non-resident rate to 10% (plus the base 1.5%), resulting in a total tax rate of 11.5%. I am very disappointed by this change, which is likely a response to the recently announced operating budget deficit and a measure to help offset that shortfall.
To avoid this additional tax, you must meet one of the following conditions:
- Have an offer written before April 1st (note that condition and closing dates may occur after April 1st).
- Become a Nova Scotia resident within six months of the closing date.
- Purchase a property with three or more units.
If you have any questions about this tax or Nova Scotia real estate in general, contact a CB Maritime Agent:
Posted by Chris Perkins on
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