Manitoba expands land transfer tax regime to capture transfers of beneficial interests in land

As we discussed in an earlier Insight, Manitoba’s 2026 Budget announced plans to expand the province’s land transfer tax regime to capture certain transactions that were previously non-taxable. The legislation implementing these changes has now been introduced. Effective January 1, 2027, Manitoba will impose a new tax on acquisitions and increases of beneficial interests in Manitoba land, even where legal title remains registered in the name of the same owner.

The changes were introduced through The Budget Implementation and Tax Statutes Amendment Act, 2026 (Bill 53), which amends The Tax Administration and Miscellaneous Taxes Act (Manitoba) by adding a new Part III.1, Tax on Transfer of Beneficial Interest in Land. The amendments apply to acquisitions of, and increases in, beneficial interests in land occurring on or after January 1, 2027.

The new regime represents a significant departure from Manitoba’s historical approach to land transfer tax. Until now, land transfer tax generally applied when a transfer of legal title was registered at the Land Titles Office. As a result, transactions that transferred only the beneficial ownership of land, while leaving registered ownership unchanged, generally did not trigger land transfer tax.

The new legislation eliminates this distinction. Going forward, a change in the economic ownership of Manitoba land may result in tax even where no transfer is registered against title.

What is changing?

The new rules introduce a separate tax on beneficial ownership transfers. The legislation provides that a person who, by any means, acquires a beneficial interest in Manitoba land or increases an existing beneficial interest is liable for the tax.

The language of “by any means” appears to be deliberately broad. The legislation is intended to capture transactions based on economic ownership rather than simply changes appearing on title. The tax may therefore apply where beneficial ownership changes through arrangements involving nominees, bare trusts or other structures where legal title remains unchanged.

The legislation also addresses partial transfers. Where a person acquires or increases only a fractional beneficial interest in land, the tax is determined by reference to that fractional interest.

Transactions that may require review

The new rules will require taxpayers to consider whether a transaction changes beneficial ownership of Manitoba land, even if there is no registered transfer.

Transactions that may require review include:

• Transfers of beneficial interests under bare trust arrangements
• Assignments of beneficial interests under agreements of purchase and sale
• Changes in beneficial ownership held through nominee arrangements
• Certain partnership transactions involving Manitoba real property
• Other restructurings where the economic ownership of land changes without a corresponding change in legal title

The application of the new rules to specific commercial and corporate transactions will depend on the facts and any regulations or administrative guidance issued by Manitoba.

Calculation of the beneficial interest tax

The beneficial interest tax generally mirrors Manitoba’s existing land transfer tax rates, as outlined below.

The tax is calculated based on the fair market value of the land as a whole at the time of the acquisition or increase of the beneficial interest. The legislation defines “land as a whole” to include the entire parcel of land to which the acquisition or increase relates, including buildings and improvements located on the property.

The applicable rates are:

Portion of value	Rate
First $30,000	Nil
Next $60,000	0.5%
Next $60,000	1.0%
Next $50,000	1.5%
Amount exceeding $200,000	2.0%

Exemptions and relief provisions

The legislation provides several exemptions intended to prevent duplicate taxation and address certain commercial arrangements.

A beneficial interest transfer will generally not attract additional tax where the transaction is subsequently registered at the Land Titles Office and land transfer tax has already been paid on the registered transfer.

The amendments also exclude certain transactions involving security interests. A transfer, assignment or pledge of a beneficial interest made solely as security for a debt or loan, and the release of that security, are excluded from the tax.

Existing land transfer tax exemptions under sections 113 and 114 of the Act are also extended in certain circumstances, with additional exemptions potentially available through regulation.

Filing and payment requirements

The new regime introduces compliance obligations that do not currently apply to unregistered transfers of beneficial ownership.

Unless an exemption applies, a person acquiring or increasing a beneficial interest must generally, within 30 days:

• File a prescribed return
• Provide an affidavit confirming the fair market value of the land
• Pay the applicable tax

The affidavit may be completed by the transferee, the transferee’s solicitor, an accredited agent or another person approved by the Minister.

Anti-avoidance rules

Bill 53 also includes specific anti-avoidance provisions targeting multiple transfers of beneficial interests.

Where a beneficial interest is acquired through a series of transactions and one of the purposes of structuring the transactions separately is to reduce the tax payable, Manitoba may assess the tax as though the beneficial interest had been acquired through a single transaction.

The amendments also extend the general anti-avoidance provisions in the Act to the new beneficial interest tax regime.

Planning considerations

The new rules will require taxpayers and advisors to consider beneficial ownership, not only registered ownership, when structuring transactions involving Manitoba real property.

Property owners, purchasers and advisors should review:

• Existing bare trust and nominee arrangements
• Planned reorganizations involving Manitoba land
• Partnership restructurings
• Estate planning transactions involving Manitoba real property
• Transactions expected to close around the January 1, 2027, implementation date

Transactions completed before January 1, 2027, remain subject to the existing regime. For transactions occurring on or after that date, the potential tax cost and additional compliance requirements should be factored into the transaction planning process. If you have questions about these issues, including actions that you may wish to consider prior to January 1, 2027, our Commercial Real Estate and Taxation practice groups would be happy to assist you.

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