Section 216

Non-resident rental tax election

How a non-resident landlord can be taxed on net rather than gross rent.

Rent paid to a non-resident of Canada is subject to a 25% withholding tax on the gross amount by default. A section 216 election lets the non-resident instead file a Canadian return and pay tax on net rental income at regular rates, usually far less, and often a refund. Filing an NR6 in advance can reduce the withholding to net during the year. The Canadian agent who fails to withhold can be personally liable, so the mechanics matter.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.