Duties on transfer of an immovable
Duties on transfers of immovables – also known as the ‘Welcome Tax’ – are charges that are payable when the right of ownership on a property is transferred. The buyer is responsible for paying these duties. Where there is more than one buyer, they are joint and severally liable for payment of the transfer duties. The Act respecting duties on transfers of immovables (R.S.Q., chapter D-15.1) requires that every municipality must collect duties on the transfer of any immovable situated within its territory.
Transfers between January 1, 2020 and December 31, 2020 – duties are calculated as follows:
|$0 – $51,700||0.5% (0.0050)|
|$51,701 – $258,600||1.0% (0.0100)|
|$258,601 – $1,000,000||1.5% (0.0150)|
|$1,000,001 and more||2.5% (0.0250)|
It is ordained and enacted by by-law 2518-1, on December 30, 2020, that the rate of duties for transfers of immovables for property transfers as of January 1, 2021 for the part of the basis of imposition that exceeds $5 million is 3.0%.
Transfers between January 1, 2021 and December 31, 2021 – duties are calculated as follows:
|$0 – $52,800||0.5% (0.0050)|
|$52,8001 – $264,000||1.0% (0.0100)|
|$264,001 – $1,000,000||1.5% (0.0150)|
|$1,000,001 – $5,000,000||2.5% (0.0250)|
|$5,000,001 and more||3.0% (0.0300)|
The duties on transfers of immovables are imposed at the time of purchase of an immovable and payable in one installment, within 30 days.
Reporting Obligation – Notice of Disclosure for Transfers of Immovables
On March 17, 2016, The Minister of Finance announced changes to the Act respecting duties on transfers of immovables that apply to all transfers in the province of Québec as of March 18, 2016. This is to ensure integrity and fairness in the regime governing the transfer of immovables.
Unregistered property transfer
Some transfers of immovables may not be registered in the Land Registry. Purchasers are still required to pay duties on transfers and are required to disclose related information within 90 days of the transaction using the Divulgation form. Once completed, it must be sent to the City of Côte Saint-Luc, along with a copy of the deed of sale and the nominee agreement as appropriate. An invoice for the duties on the transfer will be issued by the city.
As a transferee, you have an obligation to disclose the information requested when any condition for exemption is no longer met. If your immoveable has not been registered in the Land Registry, you have an obligation to disclose the information requested. Transmit this information via the following: [email protected].
Special duties are a form of compensation in lieu of transfer duties that are billed to buyers whose transaction is exempt as per The Act respecting duties on transfers of immovables.
The amount of the special duties in accordance with the transferred values are calculated as follows:
|Immovable less than $5,000||No duties|
|Immovable between $5,000 and $40,000||Special duties equivalent to the transfer duties (0.5%)|
|Immovable of $40,000 or more||$200|
The comparison factor for 2020 was 1.00. Where the imposition is made on the basis of the market value at the time of the transfer, the value on the roll must be multiplied by the comparative factor of the fiscal year that corresponds to the registration date.
The comparison factor for 2021 is 1.06. Where the imposition is made on the basis of the market value at the time of the transfer, the value on the roll must be multiplied by the comparative factor of the fiscal year that corresponds to the registration date.