December 27, 2019 – 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.