The NR6 is the undertaking a non-resident landlord files with the CRA so their Canadian agent can withhold tax on the net rent, after expenses, instead of 25% of the gross. In return, the non-resident promises to file a section 216 return within six months of the year end. You file a new NR6 for each tax year, on or before January 1 or when the first rent is due.
This guide follows Form NR6 E (23) and its instructions on the CRA form page, read as of October 2026. It's written for non-residents who own Canadian rental property and for the agents and property managers who collect the rent.
Why the NR6 exists
Rent paid to a non-resident from Canadian real or immovable property is subject to Part XIII tax. Without an NR6, the agent withholds at the statutory rate of 25% on every gross rent payment. That ignores the property's running costs, so a landlord with modest profit can have a large share of the rent withheld. The NR6 moves the withholding onto the net amount available.
The same form covers timber royalties, which follow the same rules.
Who can be the agent
The agent has to be a resident of Canada who receives or is credited with the rent on the non-resident's behalf when the form is signed. The agent gives their non-resident tax account number, or the CRA assigns one, plus another CRA identifier such as a business number or SIN.
The agent signs too, and the signature is a real commitment. If the non-resident doesn't file the return or pay the tax, the agent has to pay the full tax that would've been withheld at 25%, plus penalty and interest.
The four sections
| Section | What goes in it |
|---|---|
| 1. Non-resident identification | Name, address including country, SIN or individual tax number and date of birth, or the corporation, trust or estate account number and fiscal year end; the date the first rent is due |
| 2. Rental property information | Each property's address with estimated gross rent, total expenses and net income, plus a separate itemized expense estimate for each |
| 3. Undertaking by non-resident | Your signed promise to file the section 216 return |
| 4. Canadian agent identification | The agent's details, account number and signed declaration |
If you don't have a SIN or individual tax number, you apply first on Form T1261. Expense estimates should cover current and prepaid day-to-day costs. Don't include capital cost allowance, depreciation or amortization; those are claimed on the return. Each non-resident member of a partnership reports only their own share.
Timing: one form, one year
File a separate NR6 for each tax year. For individuals that's the calendar year. It has to be filed on or before the first day of the tax year, or when the first rental payment is due. An incomplete form isn't accepted as a valid undertaking and comes back, and until the CRA approves a valid NR6 the agent stays on 25% of gross.
What the agent does each month
Once a valid NR6 is approved, the agent works out the tax when each rent payment is made, after expenses but before capital cost allowance. The CRA must receive that tax by the 15th day of the month after the month the rent was paid or credited to the agent.
After the year, the agent files an NR4 return before March 31, or within 90 days of the fiscal year end for estates and trusts, and gives the owner an NR4 slip showing the gross rent and tax withheld. Missing the NR4 due date can bring a penalty and interest.
The return you promise to file
By signing Section 3, the non-resident undertakes to file a return under subsection 216(4) of the Income Tax Act within six months of the end of the tax year. That filing is required whether the property made a profit or a loss, and has to include all rents and timber royalties.
Breaking the promise is expensive. The CRA then calculates the tax at 25% of the gross rental income, minus whatever was already remitted, plus interest, and the agent is liable for it too.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
The walkthrough of the farming activities statement covers a different form for readers who prefer to file it themselves.
How it fits with other non-resident forms
The NR6 deals only with rent and timber royalties, and the instructions point agents to the T4061 Non-Resident Withholding Tax Guide for the NR4 return itself. Whether you count as a non-resident at all is a separate question, which our NR73 guide covers.
Why an NR6 gets sent back
- A section left blank. The CRA returns incomplete forms, and they don't count as a valid undertaking.
- No itemized expense estimate on a separate sheet for each property. The form says you have to provide it.
- A representative signed for the non-resident without printing their name and attaching a copy of the power of attorney.
- Last year's NR6 reused. Each tax year needs its own form, and corporations, trusts and estates must show their fiscal year end.
- The agent isn't resident in Canada, or isn't the person the rent is paid or credited to.
The verdict
If you own Canadian rental property while living abroad, an NR6 almost always makes sense: it keeps rent flowing instead of sitting with the CRA. Diarize two dates every year, January 1 for the new NR6 and six months after the year end for the section 216 return, and keep your expense estimate realistic.
For a different form, see the entity tax residence declaration guide.
Frequently asked questions
What is an NR6 form?
It's an undertaking by a non-resident receiving Canadian rent or timber royalties that lets their Canadian agent withhold tax on net rent instead of 25% of gross.
When do I file the NR6?
On or before the first day of each tax year, or when the first rental payment is due. You file a new one every year.
What happens if I don't file the section 216 return?
The CRA calculates tax at 25% of the gross rental income, minus tax already remitted, plus interest, and the agent is liable too.
When is the section 216 return due under an NR6?
Within six months of the end of the tax year, whether the rental made a profit or a loss.
Who can be the Canadian agent on an NR6?
A resident of Canada who receives or is credited with the rent on the non-resident's behalf when the form is signed.
Can I deduct depreciation on the NR6?
No. Leave out capital cost allowance, depreciation and amortization on the NR6; you claim them on your return.
