Provincial Non-resident Deed Transfer Tax

The Provincial Deed Transfer Tax (PDTT) is effective for all purchase and sale agreements and other specific transfers starting 1 April 2022.

The PDTT applies to all residential properties or portion of property deemed residential with 3 dwelling units or less, including vacant land considered to be residential property. A residential property is one that is used, or intended to be used, for residential purposes.

The PDTT is a 5% tax levied on the purchase price or the assessed value of property (whichever is greater).

Amendment changes to the Non-resident Deed Transfer Tax Act

A recent amendment made to the Non-resident Deed Transfer Tax Act (PDF), is changing the way the Provincial Deed Transfer Tax is calculated (updated guidelines to come).

Agreement of Purchase and Sale signed after 30 June 2023 and other transfers after 30 June 2023 without an Agreement of Purchase and Sale

For an Agreement of Purchase and Sale signed after 30 June 2023 and other transfers after 30 June 2023 without an Agreement of Purchase and Sale:

• tax applies to deeds being registered where any ownership interest is being granted to non-residents of Nova Scotia
• tax is based on the ownership interest being transferred to non-residents
• tax calculation: PDTT = 5% x Total Ownership Interest being Transferred to Non-Residents x Purchase Price or the Assessed Value of Property (whichever is greater)

There will continue to be an exemption for non-residents who move to Nova Scotia within 6 months. That exemption will be at the individual grantee level. All non-residents who are moving to Nova Scotia within 6 months must provide proof of residency for the exemption to apply.

For example, if a property is transferred to 2 non-residents who intend to move to Nova Scotia within 6 months, the tax would not be payable at the time of the transfer. However, if only 1 can provide proof of residency at the end of the 6 months, the tax (plus interest and a potential penalty) will become applicable on the ownership interest of the grantee who could not provide proof of residency.

Agreement of Purchase and Sale signed between 1 April 2022 and 30 June 2023

For an Agreement of Purchase and Sale signed between 1 April 2022 and 30 June 2023:

• If the closing date is before 1 July 2023, the tax remains the same as when it came into effect (5% tax levied on the purchase price or the assessed value of property; whichever is greater) and the tax applies to deeds being registered where ownership interest of more than 50% is being granted to 1 or more non-residents of Nova Scotia.
  
  Tax calculation: PDTT = 5% x purchase price or the assessed value of property (whichever is greater)

• If the closing date is after 30 June 2023, the grantees can choose to calculate the tax (and pay) according to the method under the original legislation or according to the method under the updated legislation as of 1 July 2023.

Exemptions

Some deed transfers are exempt from this tax. They include:

• transactions involving an Agreement of Purchase and Sale dated before 1 April 2022
• transactions only including residential property (or a portion of residential property) with more than 3 dwelling units
• for transactions before 1 July 2023, residential property with 3 or less dwelling units being transferred to grantees where 50% or more of the ownership is by residents of Nova Scotia
• residential property with 3 or less dwelling units being transferred to grantees who are not residents of Nova Scotia, if they intend to move to Nova Scotia within 6 months of the property transfer
• property being transferred between spouses/common law partners (or former spouses or common law partners if the transfer is for the purpose of division of marital/jointly held assets)
• property being transferred from an individual to a joint spousal/common law partner trust (or a trust having similar requirements if the individual is a non-resident of Canada); the individual and their spouse/common law partner must be the only beneficiaries of the trust
• residential property being transferred to a foreclosing mortgagee or to a mortgage insurer from a foreclosing mortgagee
• residential property being transferred from an executor to an eligible beneficiary under a will; an 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
• property being transferred from an executor to a spousal trust
• residential property being transferred from an administrator of an estate to a person entitled to the estate under the Intestate Succession Act or the intestacy laws of another jurisdiction
• property being transferred to a child, grandchild, parent or sibling of the grantor if the deed is registered after the death of the grantor
• property being transferred from an individual to an alter ego trust (or a trust having similar requirements if the individual is a non-resident of Canada); the individual must be the sole beneficiary of the trust.
• property being transferred to or from a trust if there is no change in beneficial ownership of the property
• transactions only including property classified as commercial/resource (no portion of the property is classified as residential)
• transactions where the grantee is a registered charity and the residential property in this transaction will not be used for commercial, industrial or other business purposes
• property being transferred to the Crown (or an agency/corporation of the Crown)
• all of the statements in this bullet must be true for this exemption to qualify.
  • deeds being registered to simply confirm, correct, modify, or supplement a deed previously given,
  • there is no consideration beyond $1 and
  • the deed does not include more property than the previous deed

Guidelines

Nova Scotia Provincial Non-resident Deed Transfer Tax Guidelines (PDF)

Process

In Property Online, complete the Provincial Deed Transfer Tax information requested in the “Add New Registered Interest” section along with the new Provincial Affidavit when transferring a property. You need to complete this for all property transactions, regardless of residency status and property type. You can’t register a deed until you complete all required portions of the form and the Provincial Affidavit.

Start now

You can visit Land Registry for more information about how to transfer a property.

If you’re unable to register a deed and transfer a property online, you can contact NSDeedTransferTax@novascotia.ca for a paper submission, submission instructions and Provincial Deed Transfer Tax related information.

Moving to Nova Scotia

Grantees that state their intention to move to Nova Scotia within 6 months of the date the property is transferred are required to demonstrate proof of Nova Scotia residency after moving to Nova Scotia. This will be done by completing the Proof of Residency Form and providing supporting documentation.

The form and supporting documentation must be emailed to NSDeedTransferTax@novascotia.ca.

Proof of Residency Form

Contact

For questions about the Provincial Deed Transfer Tax, email NSDeedTransferTax@novascotia.ca.

Notice: Where there is a conflict between the information contained on this page and the Legislation and Regulations, the Legislation and Regulations governing the Provincial Non-Resident Deed Transfer Tax will take precedence over the Guidelines, website, communications documents, forms, advance rulings or any other published information.