What CRA Forms Are Required to Report Canadian Rental Income as a Non-Resident?
Non-resident landlords who earn income from renting property in Canada are subject to special rules — and paperwork — under the Canada Revenue Agency (CRA). Failing to file the right forms, in the right order, can lead to lost refunds, denied deductions, and steep penalties.
So, if you own property in Canada but live abroad, here are the key CRA forms you need to know to stay compliant and protect your income.
1. NR6 Form — The First Step
The NR6 form is the starting point. This form allows you to notify the CRA that you intend to file under Section 216 of the Income Tax Act. It’s an optional election that lets you pay tax on net rental income (after expenses) instead of the default 25% on gross rent.
You must submit the NR6 before you start receiving rental income — or at the very beginning of the year. If approved, it authorizes your Canadian agent or property manager to withhold tax based on estimated net income, which can significantly reduce how much is withheld monthly.
Miss this form? You may be stuck paying full withholding with no right to adjust.
2. NR4 Slip — Proof of Withholding
If you don’t file an NR6 and accept the 25% withholding tax on gross rent, your property manager or tenant must issue an NR4 slip to you and the CRA at year-end.
This document shows:
Total rent collected
Total tax withheld and remitted
Your name and non-resident status
Property information
Think of the NR4 like a Canadian version of a tax T-slip. It’s your proof that taxes were paid — important when claiming foreign tax credits in your home country.
3. Section 216 Tax Return
Whether or not you filed the NR6, you can still choose to file a Section 216 return. This is a special Canadian tax return specifically for non-residents who want to be taxed on net rental income instead of the gross.
Here’s what makes it valuable:
Lets you deduct mortgage interest, property taxes, insurance, repairs, etc.
Can result in a partial or full refund if too much tax was withheld
Resets your tax position with CRA going forward
It must be filed by June 30 of the following year (not April 30 like resident returns).
4. T776 — Statement of Real Estate Rentals
Included in the Section 216 return is the T776 form, which is the detailed breakdown of:
Rental income
Operating expenses
Capital cost allowance (if claimed)
Property details
This is where you list all deductions and calculate your net income. It’s what determines how much tax you actually owe.
