Bought an investment property to rent out in Canada? Don’t forget to file your taxes.

In order to prevent overseas buyers from not paying taxes on time after collecting rent, the Canadian tax agency requires all overseas buyers to pay taxes in advance at 25% of the rental income.

While there is rental income, the property will also generate corresponding expenses such as maintenance, property taxes, etc. In order to be more fair and just, the tax bureau allows non-tax residents to submit NR6 forms on or before January 1 each year. Once approved, they only need to pay rental mortgage tax based on the net income generated by the rental, rather than 25% of the total income.

 

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