Own in Canada but Live Abroad?

If you own a rental property in Ontario and live outside of Canada, there are specific tax rules and regulations that must be followed by the Canada Revenue Agency (CRA). At GV Property Management, we help non-residents navigate these requirements and pay tax on income received from Canadian sources, such as rental income. Let us guide you through the process to avoid any issues with tax authorities.

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ARE you A NON-RESIDENT FOR TAX PURPOSES?

To determine your non-resident status for tax purposes in Canada, consider the following: 

 

1. whether you normally, customarily, or routinely live in another country and are not considered a resident of Canada; 

2. whether you have significant residential ties in Canada; 

3. whether you lived outside of Canada throughout the tax year; or 

4. whether you stayed in Canada for less than 183 days in the tax year. 

 

The number of days you spent in Canada can include time spent attending a Canadian university or college, working in Canada, or vacationing in Canada. For more information on non-resident status, visit the CRA website.

 

How does my rental income factor into all of this?

As a non-resident owner of rental property in Canada, GV Property Management is required to withhold 25% of your gross monthly rent and remit it to the CRA. However, you can elect to have tax withheld on your net rental income instead of the gross amount by completing form NR6. To do this, We require you to complete the first three sections of the NR6 form.