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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Your CRA obligations as a non-resident landlord
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.
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.
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.
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.
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.
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. 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. 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. 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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See what you'd get back
Before you commit to anything, run your own figures. These are free, no signup, and the result is shown in plain text:
- Section 216 calculator — your 25%-on-gross charge versus estimated tax on net, and your likely refund.
- CRA Part XIII remittance calculator — monthly withholding, with and without an NR6.
- NR4 filing checklist (2026) — printable, every step from agent setup to the Section 216 return.
FAQ
Do non-resident landlords pay 25% tax on Canadian rent forever?
How do I report Canadian rental income if I live outside Canada?
Do I need a Canadian agent to rent out my property as a non-resident?
Does BorderBird connect to my bank or my email inbox?
I'm a US citizen living abroad with a Canadian rental — what else applies?
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).