BorderBird
App →
Canada / CRA

Do I have to file a regular Canadian tax return as a non-resident landlord?

Generally no. Where Canadian rental income is your only Canadian-source income, the non-resident tax withheld is your final tax obligation to Canada and there is no T1. The Section 216 return is a separate elective return about the rental property specifically — it is not "your Canadian taxes."

Who this applies to: Non-residents of Canada whose Canadian income is rental income.

Key facts
T1 required?
Generally no, if rent is your only Canadian income
Section 216
Separate elective return (T1159)
Other Canadian income
May trigger a separate obligation

How it works

This is the distinction that confuses people most. Filing a Section 216 does not make you a Canadian filer in the general sense; it is a targeted election that changes how one stream of income is taxed.

If you have other Canadian-source income — employment, business income, or a taxable capital gain from disposing of taxable Canadian property — different rules apply and you may have a separate filing obligation.

Deductions such as RRSP contributions or support payments can be claimed on a Section 216 return, but not on both it and another Canadian return for the same amount.

Where people get caught

If you sold a rental property on which you had previously claimed CCA on a Section 216 return, and you are reporting the recapture, the deadline is April 30 rather than the usual Section 216 dates. That catches people who assume every Section 216 filing shares one deadline.

Source: CRA Guide T4144, Income Tax Guide for Electing under Section 216.

Terms used here

Section 216Part XIII tax

Related questions

How do I get the 25% non-resident withholding tax back?
File a Section 216 return. It taxes you on net rental income at graduated rates and the CRA refunds the difference.
Does departure tax apply to my Canadian rental property when I emigrate?
No. Canadian real property is excluded from the emigration deemed disposition — Canada keeps the right to tax the gain when you actually sell.
What is an NR6, and do I need one?
An NR6 lets your agent withhold 25% of net rent instead of gross. It fixes cash flow, and it makes the Section 216 return mandatory.

Frequently asked questions

I have two Canadian rentals. Do I file two Section 216 returns?
No. If you elect under section 216 you must report all of your Canadian rental income and expenses together on a single Section 216 return for the year.
Does interest earned on my Canadian rent account go on the Section 216?
No. Interest credited on a Canadian bank account is not included on a Section 216 return, and interest paid by an arm's-length payer is generally exempt from Canadian withholding tax.

This is general information, not tax or legal advice. Rules change and your situation is specific — verify with the CRA or IRS, or with a cross-border advisor, before acting. ← All answers

BorderBird helps cross-border landlords track rent and prepare CRA NR4 and IRS Schedule E filings — see how it works.