Trusted Income Tax Firm Offering EXPERT Tax Services

A non-resident is someone who does not maintain significant residential ties in Canada and usually lives abroad. 

If you spend fewer than 183 days in Canada and your home, spouse/partner, or dependents are outside Canada, you may be considered a non-resident. 

Yes, in certain situations. 

I

f you earn Canadian-source income such as rental income, employment income, business income, or capital gains from Canadian property, you may need to file a Canadian return to report and pay the appropriate taxes. 

Common examples include:  

• Rental income from Canadian property  
• Employment income earned in Canada  
• Business income carried on in Canada  
• Pension, CPP/OAS, or RRSP withdrawals  Certain capital gains (e.g., Canadian real estate sales) 

By default, 25% of gross rental income is withheld and sent to the CRA. 

However, you can file a Section 216 return to be taxed on net rental income instead—often resulting in a refund of overpaid tax. 

You must notify the CRA and obtain a Compliance Certificate under Section 116. 

Without it, the buyer may be required to withhold 25% (or more) of the sale price. You may also need to file a tax return to report any capital gains. 

Non-residents may qualify if the property was your primary residence during the period you were a Canadian resident. 

Otherwise, capital gains may be taxable when the property is sold. 

Yes. CPP, OAS, RRSP/RRIF withdrawals, and employer pensions are subject to non-resident withholding tax (usually 25%). 

Tax treaties between Canada and your country of residence may reduce the rate. 

Canada has tax treaties with many countries that prevent double taxation and may lower withholding rates on pensions, dividends, or other income. 

The exact benefit depends on your country of residence. 

Yes, but taxation rules differ. Interest is often tax-exempt, while dividends and capital gains may be subject to withholding tax. 

Proper planning is essential to minimize unnecessary taxes. 

We specialize in helping non-residents:  

• Determine your residency status  
• File Section 216 rental returns  
• Handle real estate sales and Compliance Certificates  
• Optimize retirement income with treaty benefits  
• Ensure compliance and avoid penalties  

👉 Contact us today to ensure you meet CRA requirements and keep more of your Canadian income.