Rental tax info for non resident Canadian

[explorer_on]

Hi,

I am a Canadian citizen currently living in USA. I want some information regarding taxes on owning a property in Canada. How much tax will I have to pay as a non resident Canadian, if I buy a house as a rental property?

Thanks in advance.

Explorer

 

[steaky]

There are two types of taxes you would be paying: income taxes and municipal property taxes. For income taxes you would need to check the Revenue Canada website under non-resident individual, while property taxes would be depend on the house price.

 

[Amadan123]

Hello Explorer,

As a non-resident of Canada owning a rental property, your tenant/management representative (henceforth referred to as "payer") will be required to withhold 25% of the gross rental and remit it to the CRA. Your payer will also have to issue you an NR4 slip, reporting the tax withheld and the income given to you.

You will no doubt incur rental expenses, which is why you should look into submitting an NR6. An NR6, if accepted by the CRA, will allow you and your payer to withhold the 25% tax on the net rental income.

You will also have to file a section 216 return annually to report the rental income and expenses.

I do hope that helps.

Madan Chartered Accountant Team
madanca.com

 

[explorer_on]

Thank you Steaky and Amadan123. I really appreciate your reply.

Explorer_on