Real estate market in Montréal: Buyers will pay more taxes in 2020 for transactions exceeding $2M

December 2019

Real estate market in Montréal: Buyers will pay more taxes in 2020 for transactions exceeding $2M

On November 25, 2019, the Executive Committee of the City of Montréal approved the 2020 operating budget as well as the 2020-2022 Three-year capital works program. Some of the budget’s measures will have a significant effect on the real estate market of Montréal.

According to the budget, the transfer duties, commonly known as the welcome tax, will increase for some buyers purchasing properties in Montréal. The Municipal Council has announced that it will increase its revenue by adding a new bracket for the basis of imposition for transfers of properties exceeding $2M. Instead of being taxed at the current rate of 2.5%, these new owners will now be taxed at 3%. By adding this tax bracket, the City hopes to increase its revenue by $10.4M.

The introduction of this bracket will have a significant impact on the commercial real estate market in Montréal. For more information on the matter, we invite you to contact our real estate law team.

Rate per Bracket - 2019 Fiscal Year: 

Basis of imposition Rate
Which does not exceed $50,900 0.5%
Which exceeds $50,900, but does not exceed $254,400 1.0%
Which exceeds $254,400, but does not exceed $508,700 1.5%
Which exceeds $508,700, but does not exceed $1,017,400 2.0%
Which exceeds $1,017,400 2.5%

Rate per Bracket - 2020 Fiscal Year:

Basis of imposition Rate
Which does not exceed $51,700 0.5%
Which exceeds $51,700, but does not exceed $258,600 1.0%
Which exceeds $258,600, but does not exceed $517,100 1.5%
Which exceeds $517,100, but does not exceed $1,034,200 2.0%
Which exceeds $1,034,200 but does not exceed $2,000,000 2.5%
Which exceeds $2,000,000 3.0%

This bulletin provides general comments on recent developments in the law. It does not constitute and should not be viewed as legal advice. No legal action should be taken on the basis of the information contained herein.

 

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