Can a non-resident landlord recover tax withheld on Canadian rent?

Arsen Accounting Services · Question 173 · Sources checked October 29, 2026

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A section 216 election can allow a non-resident to calculate Canadian tax on net rental income rather than treating withholding on gross rent as the final result. It may produce a refund, but the election must be filed within the applicable deadline.

Understand the default and the election

Canadian rent paid to a non-resident generally involves withholding on the gross amount. A section 216 return reports the relevant rental income and deductible expenses. The result depends on the actual figures; a refund is not guaranteed.

CRA generally permits the election within two years after the end of the rental year when gross withholding applied. An approved NR6 creates a much earlier filing obligation, and a sale involving CCA recapture can have another deadline. Identify the situation before choosing a date.

Official guidance: [1], [2].

Reconcile gross rent with withholding

For example, the property manager's net transfer may already subtract repairs, management fees, and tax. The return needs the gross rent and each deduction separately, supported by the NR4 and management records.

Gather the rental package

• NR4 slips and withholding-remittance records.
• Rent ledger and property-manager statements.
• Expense invoices, interest records, and ownership details.
• NR6 approval and any sale or prior CCA information.

Ask your preparer to confirm the election deadline before focusing on the expected refund. Include all relevant Canadian rental properties in the review. Do not assume your ordinary personal-return deadline applies, and do not treat the property manager's annual statement as confirmation that the section 216 election was filed.