Non-Resident Rental Income Tax Returns (Section 216)
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AFFORDABLE Non-Resident Rental Income Tax Returns
Managing rental income from Canadian properties as a non-resident can be complex, but with the right tax support, you can ensure compliance and minimize your tax liabilities. Gondaliya CPA specializes in affordable non-resident rental income tax returns, helping international property owners navigate Canadian tax rules and file accurately with the CRA. Whether you’re renting out a condo in GTA or a vacation home in Ontario, our CPA-led team ensures you meet all filing requirements while optimizing your tax position.
Our experts assist non-resident property owners in maximizing allowable deductions, properly reporting rental income, and avoiding common filing mistakes that lead to penalties. We ensure your taxes are filed on time and provide ongoing guidance for tax optimization.
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Common Non-Resident Rental Tax Problems
Non-resident property owners often face confusion when managing Canadian rental income taxes. Issues such as the 25% withholding on gross rent, missed elections like NR6 or Section 216, and unexpected CRA letters months later are common challenges. These complications can lead to overpayment or penalties if not addressed promptly.
25% Tax on Gross Rent, No Expenses:
By default, your payer (tenant or property manager) must withhold 25% of your gross rent as non-resident tax and remit it to CRA, even if your rental income is break-even or at a loss.No NR6 or Section 216 Election:
Many non-resident landlords fail to file Form NR6 or Section 216 returns, causing 25% of gross rent to become their final Canadian tax, instead of potentially lowering the tax with deductions.Missed Deadlines & Penalties:
Late or missing Section 216 returns may result in CRA assessing tax on gross rent, even if an NR6 was approved, along with accumulating interest on unpaid taxes.Confusion About Who Files and Withholds:
While tenants or agents must send withholding tax by the 15th of the following month, non-resident landlords are still responsible for ensuring that withholding taxes are correctly paid and filed on time.
Non-Resident Rental Tax Services (Section 216)
Section 216 Rental Tax Returns
Preparation and filing of non-resident rental returns for condos, houses, and multi-unit properties across Canada.
NR6 Preparation and Filing
Estimate net rental income, prepare NR6 for CRA, and coordinate with your Canadian agent to reduce monthly withholding.
NR4 Slips and Non-Resident Tax Reconciliations
Review NR4 slips, reconcile 25% tax withheld, and claim credits or refunds on your Section 216 return.
CRA Correspondence & Assessments
Respond to CRA non-resident tax assessments and adjust past years where possible under Section 216.
Record-Keeping and Expense Optimization
Identify all allowable rental expenses – including interest, repairs, property management, travel, and CCA – to minimize net income.
FBAR & FATCA Compliance
Handle FinCEN 114 and Form 8938 reporting for cross-border accounts and assets.
Eligibility & residency review
confirm non-resident status and whether Section 216 election is beneficial versus leaving 25% on gross
NR6 (where applicable)
prepare and submit NR6 with projected income and expenses; coordinate with property manager or agent.
Books & documents
collect rent statements, bank records, expense receipts, mortgage interest, and property tax bills.
File Section 216 return
compute net rental income, apply graduated Canadian tax rates, and claim non-resident tax withheld as a credit.
Why Choose Gondaliya CPA for Non-Resident Tax Returns Filing?
Expertise in Cross-Border Taxation
We specialize in Canada-US tax laws, ensuring accurate filing and minimizing tax exposure for non-residents.
Comprehensive Tax Filing Support
From Section 216 returns to NR6 filings, we provide complete support for all your non-resident tax needs.
Efficient Refund Recovery
We help you recover overpaid taxes, maximizing refunds through accurate tax reconciliations and credits.
Clear, Transparent Pricing
No hidden fees—our pricing is straightforward, ensuring you understand the costs upfront and avoid surprises.
Official Partner
We believe in clear, upfront pricing so you know exactly what to expect.
Tax Preparation (Corporation): From $400
Tax Return Filing (Corporation): From $400
Accurate Tax Submission – Ensure compliance with CRA requirements
Tax Compliance Audit – FREE CRA audit support for our clients
Ready for affordable tax savings and clean books?
Serving Non-Residents with Rental Income Tax Returns
We assist non-residents from Toronto, Mississauga, Brampton, North York, Etobicoke, Scarborough, Vaughan, Markham, Richmond Hill, Ottawa, and across Ontario with accurate and timely non-resident rental income tax filings.
Toronto (ON)
168 Simcoe St Unit 1118, Toronto, ON M5H 4C9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Mississauga (ON)
5373 Bullrush Dr, Mississauga, ON, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Brampton (ON)
4 Starhill Crescent, Brampton, ON L6R 2P9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Scarborough (ON)
24 Clementine Square, Scarborough, ON M1G 2V7, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Vaughan (ON)
19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Oshawa (ON)
210 Durham St, Oshawa, ON L1J 5R3, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Ottawa (ON)
2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Etobicoke (ON)
60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Hamilton (ON)
70 Starling Dr, Hamilton, ON L9A 0C5, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Guelph (ON)
1155 Gordon St, Guelph, ON N1L 1S8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Windsor (ON)
4387 Guppy Ct, Windsor, ON N9G 2N8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
North York (ON)
150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Industries We Serve With Our Non-Resident Rental Income Tax Services
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Non-Resident Rental Income & Section 216 FAQs
Do I have to file a Section 216 return if 25% was already withheld?
Yes, even if 25% withholding tax has been deducted from your rental income, filing a Section 216 return is necessary. This return allows you to report your actual rental income and expenses, potentially reducing the tax burden. Without filing, the withheld amount becomes your final tax payment, which may be higher than what you owe. By filing the Section 216 return, you can claim deductions for expenses and potentially recover some of the withholding tax.
What expenses can I claim on my non-resident rental property?
As a non-resident property owner, you can claim various expenses related to your rental property to reduce your taxable rental income. These expenses may include property management fees, repairs, mortgage interest, property taxes, insurance, utilities, and depreciation (Capital Cost Allowance or CCA). It’s important to keep accurate records and receipts to back up these expenses. Working with a tax expert can help ensure you’re maximizing your deductions while remaining compliant with CRA rules.
What happens if my property is at a loss?
If your rental property is operating at a loss (expenses exceeding rental income), you can use the Section 216 return to report this loss. The loss can be carried forward to future years, offsetting taxable income in those years, or, in some cases, it may be possible to claim a refund for the excess withholding tax paid in previous years. Consult with a tax professional to understand the best way to apply rental losses and minimize your tax burden effectively.
Can I still file a Section 216 return for prior years?
Yes, you can file a Section 216 return for previous years if you missed the deadline. The CRA allows for late filing, and in some cases, they may accept retroactive returns up to four years. Filing a late Section 216 return allows you to claim any missed deductions and potentially recover overpaid taxes, including any excess withholding tax. Be aware that penalties and interest may apply, so it’s best to file as soon as possible.
What is the deadline to file a Section 216 return?
The deadline for filing a Section 216 return is June 30 of the following year after your fiscal year-end. If your property’s fiscal year ends on December 31, your Section 216 return would be due by June 30 of the next year. If you miss the deadline, you may face penalties or late filing fees. However, late filing may still be accepted, so it’s essential to file as soon as possible to avoid additional charges and penalties.
Can I deduct property management fees for my rental property?
Yes, property management fees are a deductible expense when filing your Section 216 return. These fees can include payments made to property managers for services like tenant sourcing, maintenance, and general property oversight. Deducting these fees can help reduce your taxable rental income, potentially lowering your overall tax liability. Be sure to keep detailed records of any management agreements and payments made to ensure proper documentation.
Do I have to pay tax if my property is vacant?
Even if your rental property is vacant, you still have to file a Section 216 return and report the rental income, even if it’s zero. Additionally, if you receive rental income or even government subsidies like rent subsidies for your property, you must report that as income. Being proactive in filing will ensure you’re not missing any potential tax deductions or credits, like those for maintenance or property expenses, even when the property is vacant.
What happens if I don’t file a Section 216 return?
If you don’t file a Section 216 return, the CRA will automatically assess tax on your gross rental income at the 25% withholding rate, meaning you will not be able to claim any deductions or reduce your tax liability. You may end up overpaying on taxes and miss out on refunds for overpaid withholding taxes. Failing to file also increases your risk of penalties and interest charges from the CRA. It’s important to file as soon as possible if you missed the deadline.
How do I schedule a consultation?
You can schedule a free consultation call directly through our website, or contact us via our Contact Us page, and our team will reach out to discuss your business needs.
Meet Your Lead Non-Resident Rental Income Tax Filing Experts
