Many Canadians think moving overseas means their foreign or Canadian rental income is off CRA’s radar.
Not so fast — the Canada Revenue Agency (CRA) still expects you to report rent earned from any property you own worldwide while you remain a Canadian tax resident.
👉 Official CRA reference:
Rental Income – Canada.ca
💡 Who Needs to Report?
If you:
- Own a rental property abroad, or in Canada while living overseas
- Are still a resident of Canada for tax purposes, and
- Receive rent during the year
…you must declare that income in your Canadian tax return.
🔗 Related: Canada Expat Tax Residency Tests
Even if you’ve already paid tax in another country, you’ll usually still need to report it — then claim a foreign tax credit to prevent double taxation.
🌍 How Double Tax Treaties Help
Canada has tax treaties with many countries to coordinate which nation gets taxing rights and to prevent double taxation.
🗂️ Official list:
Tax Treaties – Department of Finance Canada
🔗 Related: Double Taxation for Expats – Explained Simply
If your rental property is in a country without a treaty, you may need to pay full tax in both places — CRA doesn’t automatically give relief.
🧮 Declaring the Income
When filing as a resident:
- Report gross rent and deductible expenses in CAD using the CRA average exchange rates.
- Claim the Foreign Tax Credit (Form T2209) if you paid foreign tax.
- Keep detailed records — leases, receipts, utility bills, and bank transfers.
If you’ve become a non-resident but still rent out Canadian property:
- Withholding tax (typically 25 %) applies to gross rent.
- You can file a Section 216 Return to report the actual net income and claim refunds if over-withheld.
🔗 Related: Departure Tax & CGT Rules for Canadian Expats
⚖️ Residency Determines Reporting
Residency status drives whether you report worldwide or only Canadian income.
If you left mid-year, you might file a departure return and include part-year rental income as resident income.
🔗 Learn more: Common Mistakes Canadian Expats Make
🦊 Felix’s Quick Tips
🦊 Keep digital copies of all rent receipts, bank transfers, and property expenses.
🦊 Use CRA’s exchange rates — not Google’s.
🦊 File a Section 216 return for Canadian rentals after you leave.
🦊 Always check whether your host country has a treaty with Canada before relying on foreign tax credits.
🧭For Canadian Expats
- Learn your full expat roadmap in the Canada Expat Tax Guide.
- Selling a property soon? Review Departure Tax & Deemed Disposition Rules.
- Moving out of Canada? Read Expat Tax Residency Tests.
- Grab your Free Expat Tax Ebook for global checklists & examples.
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