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Published: April 17, 2020

Last Updated: October 25, 2021

Canadian Non-Resident Real Estate Income – Section 216 Election

Canadian non-residents are taxable in Canada to a tax on income from certain “passive” sources of income earned in Canada, including rent. The general tax rate on rental income is 25% of the gross amount of the rents received. Canadian non-residents can elect under section 216 of the Canadian Income Tax Act to be taxed on their net rental income instead of the gross amount of the rents they earn.


"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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