Land Transfer Tax

Land Transfer Tax (Welcome Tax)

Under the provisions of the Act regarding duties on transfers of immovable property (R.S.Q., c. D-15.1), municipalities must collect a tax on the transfer of ownership of any property located within their territory. This tax must be paid by the buyer of the property. It is a one-time payment and must be paid 30 days after the issuance of the invoice.

Please note that the Municipality does not reissue property tax bills to the new owner of a property. It is therefore the responsibility of the new owner to ensure that all outstanding municipal taxes are paid.

The tax rate applicable to transfer duties is the greater of the following amounts:

The counterparty provided for the transfer of the property, i.e. the amount actually paid, excluding GST and QST;

The counterparty amount stated for the transfer of the property (generally the amount stated in the deed of sale);

The market value of the property at the time of transfer, i.e. the value entered on the municipality’s property assessment multiplied by the comparative factor determined by the year in which the transfer is made.

The comparison factor applicable to the Municipality is 1.52 for the 2025 fiscal year.

The calculation of the charge is based on the following parameters:

Exemption

A buyer may be exempted from the transfer tax in cases covered by the Act concerning duties on transfers of real estate. The notary must include a note in the deed of sale (or deed of transfer), so that the buyer can benefit from the transfer tax exemption in cases provided for by law. However, the municipality has the right to request any documents that may legitimize the exemption request, and to refuse it if said documents are deemed unsatisfactory.

Main scenarios for exemption:

• In the case of transfers in the direct ascending or descending line (sale from father to son; from grandmother to granddaughter);
• When the transferor is a natural person, and the transferee is a legal entity of which at least 90% of the issued shares with full voting rights are owned by the transferor;
• In the case of transfers between spouses, whether married or de facto spouses (as defined in the Act respecting duties on transfers of immovables). Same-sex spouses are included in this provision of the Act.

Special Duties

Special duties are compensation charged to buyers of real estate who are exempt from the payment of transfer duties.

The Act respecting duties on transfers of property sets the amount of the special duty according to the following criteria:

For more information on calculating duties on transfers of property: Real estate transfer duties, Government of Quebec website