Non-Resident Tax
Non-resident Tax Compliance and Filing: How Saradal Properties Supports You
Owning rental property in Canada as a non-resident comes with specific tax responsibilities that can be complex to manage without the right support. At Saradal Properties, we ensure that our non-resident clients stay fully compliant with Canadian tax laws while optimizing their tax outcomes.
Monthly Tax Withholding Requirements:
Under Canadian tax law, non-resident property owners are required to remit 25% of their gross rental income each month to the Canada Revenue Agency (CRA) as a withholding tax. If this tax is not withheld and remitted properly, owners may be subject to penalties and interest charges.
Electing for Net Income Taxation (Section 216 Election):
To reduce the tax burden, non-resident owners can file an NR6 form, allowing taxes to be calculated based on net rental income (after eligible expenses such as mortgage interest, property management fees, repairs, and property taxes). This typically results in a much lower tax payment than the standard 25% on gross income.
Saradal Properties handles the full NR6 election process, including:
• Preparing and submitting the NR6 forms at the beginning of each year or when a property is first rented.
• Estimating the expected rental income and expenses to justify reduced monthly withholding.
• Managing CRA communications and approvals on behalf of the owner.
Ongoing Tax Remittance:
If the NR6 is approved, we will collect and remit 25% of the net rental income monthly to the CRA. If no NR6 is files, we are required to remit 25% of the gross rental income instead.
Year-End Reporting and Filing:
At the end of each tax year, Saradal Properties ensures that:
• An NR4 slip (showing rental income and withholding taxes) is prepared and submitted to the CRA.
• The non-resident files a Section 216 tax return (T1159 form) to report their rental income officially, claim eligible expenses, and reconcile any overpayments or outstanding balances.
• Clients receive all necessary documentation and support to complete their tax filings efficiently.
Key Benefits of Working with Saradal Properties for Non-Resident Tax Compliance:
• Full compliance with CRA regulations — no missed deadlines or penalties
• Maximization of allowable deductions to lower your taxable income
• Hands-off experience — we manage tax filings so you can focus on your investment
• Transparent reporting and communication every step of the way
• Collaboration with specialized tax accountants if needed for complex portfolios
In short, we make it easy for non-resident property owners to stay compliant, minimize taxes, and protect their investments in the GTA — all while enjoying complete peace of mind.
"I never worry about my rental
properties anymore. Saradal gives
me updates before I even ask."
Work With a Property Management Team
That Works Like You Do
We’re not a volume-based firm—we’re a high-touch partner for those who value trust, clarity,
and consistency. That’s why we limit the number of properties and partnerships we manage—
to ensure every client receives the attention they deserve.
Work With a Property Management Team
That Works Like You Do
We’re not a volume-based firm—we’re a high-touch partner for those who value trust, clarity, and consistency. That’s why we limit the number of properties and partnerships we manage—
to ensure every client receives the attention they deserve.