By Sherry MacLeod
Managing Broker of Cape Breton Realty
The Nova Scotia government’s recent budget includes doubling the deed transfer tax for non-resident buyers—from 5% to 10% on purchases of residential property. This signifi cant increase raises concerns about the potential implications for the province’s economy and its real estate market.
Government policies, both federal and provincial, are causing people to sell their properties and preventing others from buying, meaning these people stop coming here and spending money. These non-resident property owners have historically contributed to local economies, but these new policies are working to drive away new money into the province.
Many prospective buyers will simply look elsewhere; New Brunswick, Prince Edward Island, and Newfoundland all offer attractive real estate markets without the excessive punitive tax burdens that Nova Scotia is now imposing. A buyer looking for a second home or investment property will have no trouble fi nding options outside of Nova Scotia, and when they do, the province will lose out on millions or more in economic activity.
This is not the fi rst time the provincial government has attempted to penalize non-residents in the housing market. Instead of trying to increase investment, the government has doubled down with this new tax increase, demonstrating a lack of understanding about how the market functions. This approach may not only deter potential investors but also alienate those who are already part of the community.
If the government is serious about addressing housing affordability, it should focus on increasing supply rather than punishing certain buyers. That means streamlining development approvals, incentivizing new construction, and investing in infrastructure that supports growing communities. Raising taxes on non-residents does nothing to build new homes or make the market more accessible for local buyers. It is a shortsighted cash grab that will ultimately harm the province’s reputation as a place to invest, retire, or establish roots.
Government should not be in the business of picking winners and losers in real estate. Doubling the deed transfer tax for non residents is not just bad policy—it is fundamentally unfair. Nova Scotia should be welcoming investment, not pushing it away. The government’s actions must refl ect a commitment to fostering a thriving and inclusive real estate market for all.
Imagine that your son or daughter works out west and wants to buy a cottage or home in NS for a summer home or to retire. On a $500,000 property, they will pay $50,000 in provincial deed transfer tax, $7500 for county deed transfer tax, plus legal fees, plus title insurance, etc.
And if you want to gift them the property that has been in your family for generations, the same holds true. They will have to pay 10% of the market value of that propert when the deed is registered.
Throughout Canada, we often criticize Trump for imposing taxes and tariffs that affect our economy, and we actively strive to eliminate interprovincial trade barriers to foster collaboration. Yet, here in Nova Scotia, we are simultaneously raising taxes and tariffs on Canadians who wish to invest in our province. This contradictory approach undermines our efforts to create a more unifi ed and prosperous economy.
In conclusion, the decision to double the deed transfer tax for non-residents is not just a misguided economic strategy; it is a disservice to the future prosperity of Nova Scotia. By imposing these punitive taxes, the government risks alienating potential investors and stifl ing the growth of our local economy. Instead of penalizing those who wish to invest in our communities, we must advocate for policies that foster growth, inclusivity, and accessibility in the housing market.
I urge you to contact your local representatives and express your concerns regarding this tax increase. Let them know that a thriving real estate market benefi ts everyone and that Nova Scotia should be a welcoming place for all investors, whether they are local or from afar. Together, we can push for a future where our communities thrive and where the government prioritizes sustainable growth over short-term fi nancial gains.
