The Duties on Transfer or “Welcome Tax” is an amount assessed to the new owner on the purchase of property.

The Duties on Transfer is calculated on the greatest of the following three amounts: 

  • The amount of the counterpart provided for the transfer of the immovable
  • The amount of the counterpart stipulated for the transfer of the immovable (amount shown on the deed of sale)
  • The amount of the market value of the immovable at the time of its transfer (value entered on the property assessment roll multiplied by the comparative factor of the transfer’s fiscal year).

Comparative factor

The comparative factor of the Town of Montreal West is 1.18 for 2022.

Previous comparative factors

  • 1.06 for 2021
  • 1.00 for 2020
  • 1.04 for 2019

Calculation of transfer taxes

The calculation of this tax is as follows:

  • 0.5% on values less than $53,200
  • 1% on values from $53,200 to $266,200
  • 1.5 % on values from $266,200 to $500,000
  • 2 % on values greater from $500,000 to $750,000
  • 2.5 % on values greater than $750,000 to $1,000,000
  • 3% on values greater than $1,000,000

Here is a sample calculation using $670,000 as a basis of purchase price:

  1. Multiply $53,200 by 0.5% = $266.00
  2. Then multiply $213,000 by 1.0%  = $2,130.00
  3. Then multiply $233,800 by 1.5% = $3,507.00
  4. Then multiply $170,000 by 2% = $3,400.00

So, for a basis of imposition of $670,000, total duties will be : $9,303.00

The duties on transfers of immovables are imposed at the time of purchase of an immovable and payable in one installment, within 30 days.

Special duties

Special duties are a form of compensation in lieu of transfer duties that are billed to buyers whose transaction is exempt as per The Act respecting duties on transfers of immovables.

The amount of the special duties in accordance with the transferred values are calculated as follows:

Immovable less than $5,000                                      No duties

Immovable between $5,000 and $40,000               Special duties equivalent to the transfer duties (0.5%)

Immovable of $40,000 or more                               $200

No special duties are to be paid where an exemption is provided for in the Act respecting duties on transfers of immovable (R.S.Q., chapter D-15.1) at section 17 paragraph (a.2), or section 20 paragraph 1 sub-paragraph (a), section 20 paragraph 1 subparagraph (d) or (e) when the transfer results from the death of the transferor, or section 20 paragraph 1 subparagraph (e.1) when the transfer results from the death of the person who transferred the immovable to the trust referred in that subparagraph.

For transfers of immoveables that have not been registered in the land register, purchasers are required to pay property transfer duties and must disclose related information within 90 days of the transaction using the transfer of immmoveables disclosure form. The completed form must be sent to the Town of Montreal West, along with a copy of the deed of sale and the nominee agreement as appropriate. A property transfer duties bill will be issued by the Town

Transfer of immoveables disclosure

A buyer may be exempt from paying the duties on transfers in certain cases. The notary must mention the applicable exoneration, in accordance with the legislation, which exempt the buyer from paying the duties on transfers.

Main situations justifying an exemption:

  • Transfer to a direct ascendant or descendant (i.e. sale from father to son; from grandmother to granddaughter);
  • Where the transferor is a natural person and the transferee is a legal person with 90% of its issued shares with full voting rights are owned by the transferor;
  • Transfer between married couples or between common-law (de facto) spouses. Same sex partners are included in the provisions of the law.

Common-law spouses who separate have 12 months after their separation to transfer the property rights. Beyond this deadline, the transfer will not be exempt. Married spouses who separate have 30 days after the date of the divorce judgment to make the transfer if this judgment does not assign ownership of the building to one or the other of the spouses.

The Act respecting duties on transfers of immovables, R.S.Q., chapter D-15.1 foresees several other exemption situations.

Exemption conditions cease to be satisfied

Exemptions from the payment of duties on transfers can be revoked. This is notably the case following a transfer of shares modifying the control of a company (90% or more of the votes). The purchaser of the immovable has the obligation to disclose the cessation of the right to an exemption by using the disclaimer form. Once completed, this form must be sent to the Town of Montreal West’s administration office.

Exemption disclosure