There are two different types of new taxes being implement.
The first is being called a deed transfer tax. This is an additional %5 charged based on the purchase price in addition to the municipal deed transfer tax currently charged by most municipalities.
This will only apply to purchase and sale agreements that are accepted after April 2, 2022.
Non- residents who move here within 6 months of the purchase date will be exempt from this tax as well.
The deed transfer taxes that are currently in place in Nova Scotia are collected by and vary by Municipality. Municipality of the District of Kings and the Town of Kentville have zero deed transfer taxes to encourage property purchases there. The rest of the municipalities range from 1% to 1.5%.
The second new tax for non-residents is an additional property tax. It will be charged at an additional $2.00 for every $100 of the assessed value.
If the non-resident’s property is over 3 units then the additional tax will not be applicable. If the proeprty is rented out to a Nova Scotia resident for a minimum of 12 months, or if a Nova Scotia resident owns 50% of the property, then this property is also not applicable.
Nova Scotia does have a housing shortage so imposing a tax to prevent a similar absentee landlord situation, similar to Vancouver. Though on a different scale, the tax did decrease in vacancies in Vancouver as well as a increased tax revenue of app. $2.5 million a year.