Nova Scotia has been attracting German property buyers for years — and for good reason. Comparatively affordable prices, stunning coastal scenery, a relaxed lifestyle, and a growing German-speaking community make the province an attractive destination.
This article explains step by step what to consider when buying property in Nova Scotia as a non-Canadian — from legal requirements and taxes to practical management after the purchase.
1. Can Germans Buy Property in Nova Scotia?
Yes — with restrictions. Canada introduced the Foreign Buyer Ban in 2023, which prohibits non-Canadians from buying residential properties in certain areas. However, this mainly applies to urban agglomerations. Most rural communities in Nova Scotia are expressly exempt.
Exempt regions (no purchase ban):
- South Shore (Lunenburg, Chester, Mahone Bay)
- Cape Breton Island
- Annapolis Valley
- Northumberland Shore
- Most rural communities in NS, PEI and NB
Note: Halifax and Dartmouth fall under the Foreign Buyer Ban. If you want to buy in the capital region, you must consult a Canadian lawyer.
2. Key Taxes When Buying
Non-Resident Deed Transfer Tax (NRDTT) — 10%
This is the most significant additional tax for non-residents in Nova Scotia. Since April 1, 2025, it is 10% of the purchase price (or assessed value, whichever is higher). It is in addition to the regular municipal deed transfer tax (approx. 1–1.5%).
Example calculation:
Purchase price $400,000 → NRDTT: $40,000 + Municipal deed transfer tax: ~$6,000 = Total transfer taxes: ~$46,000
Exception: If you establish Nova Scotia residency within 6 months of purchase and prove it with an NS driver's license or health card, the NRDTT is fully waived.
Underused Housing Tax (UHT) — 1% annually (until 2024)
The UHT was an annual federal tax of 1% on the value of residential properties left vacant by non-Canadians. Good news: the 2025 federal budget eliminated the UHT starting from the 2025 tax year. However, filing obligations may still exist for the years 2022–2024 — consult a Canadian tax advisor.
Withholding Tax on Sale — 25% Holdback
When you sell the property as a non-resident, the buyer is required to withhold 25% of the sale price and remit it to the Canada Revenue Agency (CRA). This money is credited against your capital gains tax. With a Clearance Certificate applied for in advance from the CRA, this holdback can be reduced or avoided.
3. The Purchase Process Step by Step
Hire a Realtor
In Nova Scotia, it is common to work with a local Realtor. The commission is typically paid by the seller — no direct costs for you as a buyer.
Purchase Offer (Agreement of Purchase and Sale)
Your Realtor prepares the offer using standard forms from the Nova Scotia Real Estate Commission. Important: Always include a condition giving your lawyer time to review (Lawyer Review Condition).
Engage a Canadian Lawyer
In Nova Scotia, a lawyer is mandatory for property purchases. The lawyer checks the title, coordinates the transfer, and ensures no encumbrances (liens, easements) burden the property. Expect legal fees of approx. $1,500–$2,500.
Home Inspection
A professional home inspection is not legally required but strongly recommended — especially for older buildings in Nova Scotia, where wood construction, oil tanks, and well water are common. Cost: approx. $400–$600.
Arrange Financing
As a non-resident, you can get a Canadian mortgage but typically need a down payment of at least 35% of the purchase price. Alternatively, many German buyers purchase with equity or finance through a German bank with an international property product.
Closing
On closing day, your lawyer transfers the funds, the title is transferred, and you receive the keys. All taxes (including NRDTT) are due at closing. Plan 60–90 days between offer and closing.
4. After Purchase: Managing from Abroad
The purchase is complete — but the real challenge begins afterward. Managing a property in Nova Scotia from Germany means: seasonal closings and openings, winter protection, contractor coordination, emergency responses, and regular checks — all without being on site.
Many German owners underestimate this effort. An unused house in Nova Scotia can sustain significant damage within a single winter — leaking roofs, frozen pipes, mold — if no one checks regularly.
What Maritime Property Solutions handles:
- Regular inspections with photo documentation
- Winterization and spring opening
- Contractor coordination and supervision
- Emergency response for damage or break-ins
- Coordination with Canadian tax and legal advisors
Frequently Asked Questions
Can I get a mortgage in Canada as a German citizen?
Yes, but as a non-resident you typically need a down payment of at least 35% of the purchase price. Some Canadian banks offer special non-resident mortgages. Alternatively, you can finance through a German bank with an international property product.
Do I need to declare the property in Germany for tax purposes?
Rental income from Canadian properties is generally taxable in Germany, but can be offset through the double taxation agreement between Germany and Canada. A tax advisor with international tax expertise is essential here.
How long does the purchase process take?
Plan for 60–90 days between offer and closing. Finding the right property can take a few weeks to several months depending on market conditions and requirements.
Do I need a Canadian lawyer?
Yes, in Nova Scotia a lawyer is legally required for property purchases. The lawyer checks the title, coordinates the transfer, and ensures all legal requirements are met.
Do you own property in Nova Scotia?
Maritime Property Solutions handles local management — from regular inspections and contractor coordination to liaison with tax and legal advisors.
Written by
Jochen is a German-trained carpenter and entrepreneur based in Atlantic Canada. He founded Maritime Property Solutions to give overseas and out-of-province property owners a reliable, structured local presence — someone who actually shows up, documents what they find, and coordinates what needs to happen next. His background in hands-on construction gives him a practical edge when assessing property condition, coordinating trades, and overseeing renovation work.