Non-Resident & Expat Tax Services.
Leaving Canada, investing in Canadian real estate from abroad, or working cross-border comes with severe tax traps. We navigate the complexities of Departure Tax, Section 216 returns, and tax treaties so you don't face double taxation or massive CRA penalties.
Critical Non-Resident Filings
- Departure Tax (Deemed Disposition) filings
- Section 216 Returns for Canadian Rental Income
- NR6 Elections to reduce withholding tax
- Section 116 Clearance Certificates for property sales
- Tax Treaty exemptions to prevent double taxation
Stop Overpaying on Canadian Rental Income
If you live abroad and rent out your Canadian property, the CRA demands 25% of your gross rental income. By filing an NR6 and a Section 216 return, we can reduce that withholding to 25% of your net income. Calculate your potential savings below.
Section 216 (NR6) Savings Estimator
Non-residents earning rental income in Canada face a mandatory 25% withholding tax on Gross Rent. By filing an NR6 and a Section 216 return, you can elect to pay 25% on Net Rent instead, drastically improving your cash flow.
Monthly Eligible Expenses
Default 25% Gross Withholding
NR6 Net Withholding
Annual Cash Flow Saved
By filing an NR6 and Section 216 return with Western CPA.
Strict CRA Deadlines Apply
The NR6 must be filed before the first rent payment of the year is due. Section 216 returns must be filed within 6 months of year-end. Missing these deadlines defaults you back to the 25% gross tax with penalties.
Emigrating from Canada: The Departure Tax Trap
Leaving Canada to become a non-resident for tax purposes is not as simple as boarding a plane. The CRA imposes a strict set of rules known as the Departure Tax.
When you sever residential ties with Canada, the CRA treats you as having sold almost all of your assets at fair market value on the day you leave. This "deemed disposition" can trigger a massive capital gains tax bill, even if you haven't actually sold anything.
How We Protect Your Wealth When Emigrating:
- Residency Determination: We analyze your residential ties (spouse, home, driver's license) to definitively establish your emigration date and defend it against CRA scrutiny.
- Form T1161 & T1243 Filing: Mandatory reporting of your worldwide assets exceeding $250,000 upon departure.
- Tax Deferral Elections: If you don't have the cash to pay the Departure Tax, we can file an election to defer the tax payment until you actually sell the assets (security may be required).
- RRSP/TFSA Strategy: Advising on whether to collapse, maintain, or transfer your registered accounts based on the tax treaties of your new home country.
Selling Canadian Real Estate as a Non-Resident
If you are a non-resident and you sell real estate located in Canada, the purchaser is legally required to withhold 25% of the gross sale price (not the profit, the total price) and remit it to the CRA, unless you obtain a Section 116 Clearance Certificate.
This can severely impact your cash flow and ability to pay off existing Canadian mortgages upon closing.
The Section 116 Process
We prepare and file the T2062 request for a Certificate of Compliance before or within 10 days of closing. We calculate the actual capital gain, remit 25% of the net gain to the CRA, and secure the certificate so the buyer's lawyer can release the remaining funds to you.
Finally, we file your non-resident Canadian tax return (Section 115) the following year to claim any applicable expenses (like legal and real estate commissions) to ensure you receive a refund for any overpaid withholding tax.
Section 216 Rental Returns
Earning rental income while living abroad? We file your NR6 elections to reduce withholding tax to 25% of net income, and prepare your annual Section 216 tax returns to keep you perfectly compliant with the CRA.
Regulation 105 Withholding
If you are a non-resident providing services in Canada, your clients must withhold 15% of your fees. We help you apply for Regulation 105 waivers based on tax treaties or file Canadian returns to recover these withheld amounts.
Digital Nomads & Cross-Border Workers
Working remotely across borders creates massive tax exposure. We ensure you aren't taxed twice on the same income.
Foreign Tax Credits
If you are a Canadian resident working abroad, you must report worldwide income. We aggressively apply foreign tax credits so the taxes you pay to foreign governments offset your Canadian tax bill dollar-for-dollar.
Tax Treaty Tie-Breakers
If two countries claim you as a tax resident, we utilize international tax treaties (Tie-Breaker Rules) to definitively establish your residency and protect you from dual taxation.
T1135 Foreign Verification
Owning more than $100,000 CAD in specified foreign property requires filing Form T1135. The penalties for missing this are severe ($2,500+). We ensure complete compliance for your offshore investments.
Why Choose Western CPA?
At Western CPA, we don't just record history; we write your financial future. Most accounting firms are reactive - they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Western CPA Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Non-Resident Tax FAQs
Expert answers regarding Canadian tax obligations for expats and non-residents.
Rated & Reviewed
From first impressions to lasting results, discover why people choose us again and again through their honest reviews.
Customers consistently praise the professional and knowledgeable staff, highlighting their efficient processes and excellent customer service in handling tax-related services, making the experience smooth and stress-free. However, no significant cons have been noted in the reviews provided.
Customers consistently praise the professional and knowledgeable staff, highlighting their efficient processes and excellent customer service in handling tax-related services, making the experience smooth and stress-free.
We've been filing our taxes with this team for the past 3 years, and the experience has been nothing short of exceptional. From day one, they've been incredibly professional, knowledgeable, and responsive.
I recently worked with Western CPA to file my business tax returns, including a few complex amended returns and I couldn't be more pleased with their service. They were highly professional, knowledgeable, and guided me through every step.
Highly recommend their services. They are very responsive and take the time to explain everything clearly.
I've worked with Chirag two years in a row now (through a reference!) to file my mildly complicated sole proprietorship and personal income taxes from two different provinces. He is incredibly knowledgeable and helpful.
Exceptional service! From tax optimization to financial planning, they've been instrumental in maximizing my returns and minimizing my stress. Their proactive approach and attention to detail are truly commendable.
We had an excellent experience working with Western CPA. Their great business acumen and professional approach made the entire process smooth and stress-free. The team is incredibly knowledgeable and always ready to help.
Western CPA is the most professional firm I have ever dealt with. Highly knowledgeable staff and always eager to assist. They have their processes well-established, and they stick to them.
Don't Let Borders Complicate Your Wealth
Cross-border taxation is unforgiving. Partner with Western CPA to ensure total compliance and aggressive tax optimization, no matter where you live.