BorderBird
🌍 Non-residents · 🇨🇦 Canadian rental property

Own a Canadian rental but live abroad?

If you're a non-resident of Canada earning rent on a Canadian property, 25% of your gross rent is withheld under Part XIII — but NR6 and Section 216 can cut that to tax on your net income, usually a refund of thousands. Forward your rent emails to BorderBird and get clean books and your exact NR4 withholding number, free.

In short: A non-resident who owns Canadian rental property has 25% of the gross rent withheld under Part XIII and remitted to CRA each month. Filing Form NR6 before the year lowers the in-year withholding to 25% of net rent; a Section 216 return after year-end taxes your net income at graduated rates and refunds the over-withheld difference. Your agent issues an NR4 slip by March 31 reporting it all.

By Emanuel — Founder, BorderBird · Updated June 2026

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5-minute setup

Create account, set up forwarding, add a property, add a tenant, forward your first email. Five steps, about a minute each.

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Forward your payment and utility-bill emails — one filter, set once — and BorderBird auto-matches each to the right property and tenant, dated and queued for one-click import. It never connects to your inbox.

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Your CRA obligations as a non-resident landlord

Part XIII
25% non-resident withholding (CRA)

The default: whoever pays your rent — your property manager, resident agent, or tenant — must withhold 25% of the GROSS rent each month and remit it to CRA by the 15th of the following month. It ignores your expenses entirely. Everything below exists to reduce or recover it.

NR6
Apply to withhold on net, in-year (CRA)

File Form NR6 before the rental year begins and, once CRA approves it, your agent can withhold 25% of NET rent (rent minus expected expenses) instead of gross — keeping most of that cash in your hands through the year. Filing an NR6 commits you to filing a Section 216 return.

Section 216
File on net income, recover the rest (CRA)

A Section 216 return taxes your NET rental income at graduated rates instead of the flat 25% on gross, and CRA refunds the difference — usually thousands per year for any landlord with a mortgage. Due June 30 if you had an NR6 in place, otherwise within two years of the end of the tax year.

NR4
Your annual information slip (CRA)

By March 31 each year, your agent issues you an NR4 slip reporting the gross rent paid to you (box 16) and the Part XIII tax withheld (box 17), per CRA guide T4061. It is the document your Section 216 return reconciles against.

Section 116
Clearance certificate when you sell (CRA)

When a non-resident sells Canadian real property, the buyer must hold back 25% of the gross sale price until you obtain a Section 116 clearance certificate from CRA — Canada's equivalent of FIRPTA. Plan for it: the certificate can take several weeks to issue.

The free wedge

Forward an email. Get your books and your NR4 number.

Living abroad means you often can't log into Canadian online banking, and you shouldn't have to hand any app your inbox. So BorderBird starts from the one thing you already have: the payment emails.

  1. 1. Forward your rent emails.Interac e-Transfer notifications, Wise transfers, or your property manager's statements — forward them to your private BorderBird address. One email filter, set once.
  2. 2. BorderBird reconciles each one. It matches every payment to the right property and lease, dated correctly, and builds a clean ledger — without ever connecting to your bank or reading your inbox.
  3. 3. See your withholding and NR4 data. Your Part XIII number is computed on the CRA 15th-of-month rule, with NR6 net-rent support, and the year-end export gives your accountant the Section 216 / NR4 supporting figures.
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FAQ

Do non-resident landlords pay 25% tax on Canadian rent forever?
No. The 25% Part XIII withholding is on gross rent and is only the default. A non-resident can file Form NR6 before the year to have the agent withhold on net rent instead, and file a Section 216 return after year-end to be taxed on net income at graduated rates — CRA refunds the over-withheld difference, which for most landlords with a mortgage is thousands per year.
How do I report Canadian rental income if I live outside Canada?
Your Canadian resident agent (usually a property manager) withholds 25% of gross rent, remits it to CRA by the 15th of each month, and issues you an NR4 slip by March 31. You then optionally file a Section 216 return to be taxed on your net rental income and recover the over-withholding. If you filed an NR6 first, the Section 216 return is mandatory and due June 30.
Do I need a Canadian agent to rent out my property as a non-resident?
In practice, yes. Without a resident agent, the law makes your tenant responsible for withholding and remitting 25% of the rent — which almost no tenant does, and CRA enforcement then falls back on you. Appointing a Canadian resident agent (any property manager offers this) keeps the withholding compliant and is required to file an NR6.
Does BorderBird connect to my bank or my email inbox?
No. BorderBird never connects to your bank and never reads your inbox. You forward the rent-payment emails you already receive (Interac e-Transfer, Wise, your manager's statements) to a private BorderBird address, and it matches each one to the right lease. That privacy-first design is why it works for non-residents who can't easily log into Canadian banking from abroad.
I'm a US citizen living abroad with a Canadian rental — what else applies?
The CRA obligations on this page apply to you, plus the US side: you report the Canadian rent on Form 1040 Schedule E in USD, claim a Form 1116 foreign tax credit for the Canadian tax paid, and may have an FBAR if your Canadian accounts exceed US$10,000. See our guide for American landlords with Canadian property for the full US-side workflow.

This page is general information, not tax advice. Non-resident rules carry steep penalties for missed withholding and late slips — consult a qualified Canadian cross-border tax professional, and verify current rules with the CRA (guide T4061).