In order to prevent overseas buyers from not paying taxes on time after collecting rent, the Canada Revenue Agency requires all overseas buyers to pay 25% of the income generated from rent in advance.
While there is rent income, the property will also incur expenses such as maintenance, real estate taxes, etc. In order to be more fair and just, the tax bureau allows non-tax residents to submit the NR6 form on or before January 1 of each year. Once approved, they only need to pay the rent mortgage tax based on the net income generated by the rent instead of 25% of the total income. .
