If you're buying or selling real estate in Nova Scotia—or moving here from another province or country—it's important to understand the rules that could affect your purchase. The federal Foreign Buyer Ban and Anti-Flipping Tax, along with Nova Scotia’s Non-Resident Deed Transfer Tax, can all impact your decision-making.
We’ve answered the most common questions below so you can feel confident and informed during your property journey.
The anti-flipping tax on residential properties was designed to ensure that profits from flipped properties are fully taxable as business income. A flipped property is any real estate purchase in which the buyer intends to resell it within a short timeframe to earn a profit. This rule applies to any transaction occurring on or after January 1st, 2023.
If you purchase a residential home and resell it in less than 12 months after purchase, it is considered flipped. The anti-flipping tax also applies to assignment sales on new builds if the rights to purchase the property are assigned in less than 12 months.
Any profits from the sale of a residential property owned for less than 365 days will be taxed as business income rather than capital gains. This means the profits from the sale will be ineligible to be taxed at the capital gains rate and cannot be exempt under the principal residence exemption even if the home was used as your principal residence before the sale.
The principal residence exemption allows you to eliminate or reduce the amount of capital gains tax paid on the sale proceeds. If you owned the home and resided in the home as your primary residence for the entire time, you will be exempt from paying capital gains tax on the sale proceeds. However, if the home was not your primary residence at any point during your ownership, the time it was not considered your primary residence will be taxed as capital gains.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act prohibits those who are not Canadian citizens or permanent residents and corporations and entities not listed on a stock exchange in Canada and controlled by non-Canadians from purchasing residential property in Canada. The ban, which came into effect in 2023, was set to expire on January 1st, 2025. However, the ban was extended an additional 2 years and now expires on January 1st, 2027.
The ban only applies to properties located within a Census Metropolitan Area (CMA) or Census Agglomeration (CA).
That means rural and smaller communities, like many found across Nova Scotia’s Annapolis Valley, are not affected.
For example, areas like:
Wolfville
Greenwood
Aylesford
Berwick
Middleton
Canning
Baxters Harbour
Scots Bay
Arlington
Bridgetown
Digby
Weymouth
Annapolis Royal
Bear River
Hantsport
These locations may fall outside the restricted zones, making them more accessible for international buyers.
Not all non-Canadians are affected.
Exemptions include:
Temporary residents with a valid study or work permit meeting certain criteria
Refugees and protected persons
Non-Canadians purchasing with a Canadian spouse or partner
Foreign nationals buying in excluded areas (outside CMA or CA zones)
Always consult a local real estate expert to confirm if your desired property falls within the restricted zones.
In Nova Scotia, non-residents buying residential real estate are subject to a Deed Transfer Tax of 10% of the property's purchase price. This was introduced as part of the province’s housing strategy to prioritize local buyers.
This tax applies in addition to any local deed transfer tax charged by municipalities (usually 1% - 1.5%).
To avoid the 10% non-resident deed transfer tax, you must meet one of the following conditions:
Become a Nova Scotia resident within 183 days of the closing date (proof of residency required)
The property is a multi-unit dwelling (4+ units) or commercial real estate
The property is vacant land with no habitable buildings
The purchase is made by or in partnership with a Nova Scotia resident
If you plan to move to Nova Scotia permanently, there’s a clear path to exemption—but it's important to plan ahead and document your relocation accordingly.
Thinking about buying or selling property in Nova Scotia, Canada? Let us help you navigate the current rules—like the foreign buyer ban and anti-flipping tax—and understand how they could impact your plans. These regulations can affect your eligibility, tax responsibilities, and overall strategy. For personalized guidance, contact us! We are here to help you navigate and ensure you’re fully informed and prepared.
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