Not filing NR6 form for non-resident Canadian rental income

[ChromiumDioxide]

I'm a US resident considering purchasing a buy-to-let property in Canada and am currently investigating the tax obligations.

I understand that the rental income is subject to 25% withholding tax on the gross amount unless an NR6 is filed, in which case it becomes 25% on the net amount.

However the withholding agent would typically be a property manager (and indeed I will need a property manager as an absent landlord) and apparently it is difficult to find withholding agents as they are liable for the maximum of 25% gross if the landlord neglects to file the appropriate tax return every year.

Therefore in order to make it easier to find a property manager withholding agent, can I deliberatly not file the NR6 and thus the agent always witholds 25% gross.

Then when I file the tax return, would I get a refund on the difference between 25% net and 25% gross?

[JGCA]

If you can ot find an agent to do the 25% of the Net then simply pay the 25% of the Gross ( you do not need to file NR6 for gross tax) then file the sec 216 tax retun at end of the year and get your refund, this way no agent required.

[nelsona]

The agent can be a Cdn relative, or can even be the tenant. having 25% withheld for the whole year can be a burde, especially if you have high expenses.

[ChromiumDioxide]

Thanks JGCA and nelsona.

I don't have any relatives in Canada and trying to show the property and find a tennant etc. without an agent is going to be a hassle when I live in the US.

So its ok for the agent to pay me the full rental amount (less their deduction) and then each month I directly pay 25% of the full gross amount to the CRA?

I won't have a mortgage and don't mind having the 25% withheld provided I can eventually get a refund at the end of the year.