Managing your rental
Living outside Canada and renting out an Ontario home or condo: the 25% non-resident tax on rent, Form NR6, the section 216 return and NR4 slips.
By the Tenant.ca teamUpdated 4 min read
If you are a non-resident of Canada and receive rent from property in Ontario, the Canada Revenue Agency's guide T4144 says the payer or agent, such as a property manager, must withhold non-resident tax of 25% of the gross rent paid or credited to you, and remit it on or before the 15th day of the month after the rent is paid or credited. The guide defines an agent as a property manager or anyone else who acts for you with your Canadian rental income.
Gross means before expenses: on the default rule, a quarter of every rent payment goes to the Canada Revenue Agency, whatever the condo fees, mortgage interest or repairs come to.
After each year, T4144 says the payer gives you two copies of slip NR4, Statement of Amounts Paid or Credited to Non-Residents of Canada, showing the gross rent and the tax withheld. Keep them with your records: they are what the Canada Revenue Agency matches your return against.
You can elect to have tax withheld on your net rental income instead. Under T4144, you and your agent complete Form NR6, the agent must be a resident of Canada, and the form goes to the Canada Revenue Agency on or before January 1 of each year or before the first rental payment is due. Until the agency approves it in writing, the agent keeps withholding on the gross rent.
A section 216 return lets you pay tax on the net rent, after the expenses the Canada Revenue Agency allows, and get back tax withheld beyond what you owe. Without an NR6, T4144 says you generally have two years from the end of the year the rent was paid to send it.
With an approved NR6 the deadline is much shorter: T4144 gives June 30, 2026 for the 2025 return. If you miss it, the guide says the election is invalid and you are taxed on the gross rent.
This page is general information, not legal, tax or financial advice. The Canada Revenue Agency's pages, checked on October 22, 2026, are the authority on how your rent is taxed, and an accountant can apply them to your own situation.
The Residential Tenancies Act applies to the unit wherever its owner lives. Section 20 makes you responsible for repairs, section 27 governs entry, and the province's standard lease asks for an address where the tenant can give you notices and documents. A tenant with a leak at night needs someone in Ontario who can answer, so arrange that before the lease starts.
Because T4144 puts the withholding on the payer or agent, ask any property manager you are considering how they handle the non-resident tax on your rent, the NR4 slips and an NR6, and put their answer in writing before you sign. Your accountant should see the same answer.
Tenant.ca manages condos and apartments for $98 per month plus HST and houses from $148 per month plus HST, with no percentage of rent. Your owner portal shows each rent payment, repair and inspection, with statements you can export for your accountant, and the first 60 days of the agreement are a trial period. If you live outside Canada, say so when you get in touch, so we can go through how your rent would be handled before you sign.
