Real Estate Tax Information for Non Residents Buying Property in PEI

We are currently working with a number of clients who are moving to PEI from "away" and thought this information was worth posting:

Provincial Taxation of "Residents" vs "Non-Residents"

When selling to Non-Residents of PEI (a Non Resident is defined under Section 5 of the Real Property Tax Act as someone who has NOT lived on PEI for 183 consecutive days), Members should be aware that the provincial taxation rate will be approximately 50% more than "Residents", that is, someone who has resided here the requisite 183 Consecutive days.

This taxation rate for "Non-Resident" status continues if the party does not meet the above requirement. If the party, once they move here, has resided here for 183 consecutive days and can prove it, they can apply for the Provincial Tax Credit which reduces their assessment rate to that of "Resident". This credit is NOT retroactive. It takes effect only from the time of change of residency status and must be applied for using the form here: www.taxandland.pe.ca.

 

 

Kelly Lantz

Kelly Lantz

REALTOR®
CENTURY 21 Colonial Realty Inc.
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