By Jason Heath, CFP on March 17, 2026 Estimated reading time: 4 minutes

Tax implications of owning a rental property as a non-resident of Canada

By Jason Heath, CFP on March 17, 2026 Estimated reading time: 4 minutes

If you leave Canada and own a rental property, or you are a non-resident and you buy a rental property, there are tax considerations that apply.

Canadian residents are taxable on their worldwide income. Non-residents do not generally file a Canadian tax return, but there are exceptions. A notable one is when a non-resident owns a Canadian rental property.

Withholding tax on rental income

Rental income paid to non-residents is subject to 25% withholding tax. This tax is most commonly remitted by either a property manager or the tenant to the Canada Revenue Agency (CRA) by the 15th of the month after the rental income is paid. 

The CRA uses the term “agent” to describe a property manager or any other person who acts on your behalf for Canadian-source rental income. The agent must be a resident of Canada but does not have to be a professional property manager; it can be a family member, friend, or someone else. 

If a non-resident does not arrange for this withholding tax, they are generally subject to arrears interest payable to the CRA and possibly a penalty.

A non-resident landlord has the option to file a Form NR6, Undertaking to File an Income Tax Return by a Non-Resident Receiving Rent from Real Property or........

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