Do Canadian Non-Residents Need to File a Tax Return with No Income? Understanding When Filing Is Still Required

Why “No Income” Doesn’t Always Mean “No Filing” for Canadian Non-Residents

Many Canadians who move abroad assume that once they leave the country and no longer earn income in Canada, they can simply ignore annual tax filing requirements. It feels intuitive—if there is nothing to report, what could the CRA possibly expect? Yet this is one of the most misunderstood areas of non-resident taxation, largely because Canada’s tax rules distinguish between earning income and maintaining ties or responsibilities that still fall under CRA review. The real question isn’t whether you earned money, but rather whether you have accounts, assets, or obligations that trigger a filing requirement even when your income is zero. This is where countless non-residents inadvertently fall out of compliance without realizing it.

How Property Ownership and Rental Potential Can Trigger Filing Requirements Even with No Actual Rent

One of the most common examples involves Canadian real estate. If you own property in Canada but choose not to rent it out for part or all of the year, you may believe you are exempt from filing any returns. However, the CRA requires clear reporting if you are registered as a non-resident landlord, have an NR6 on file, or previously reported rental income. Even a short period without tenants can raise questions from the CRA, and if your property manager continues filing NR4 slips—often out of routine—this paperwork must be matched with a proper return. In many cases, non-residents still need to file a Section 216 return simply to reconcile withheld tax or to confirm that no rental income was received. Failing to file can cause penalties or create a compliance gap that triggers reviews later.

When Filing a Zero Return Helps Protect You from CRA Audits and System Flags

Another overlooked scenario involves situations where non-residents genuinely have zero Canadian income but still benefit from filing a return. Filing what is essentially a “zero return” confirms to the CRA that you remain compliant, prevents automated letters from being issued, and keeps your file clean. This is especially important for individuals who plan to return to Canada later or who hold assets such as bank accounts, investments, or property. A simple confirmation return can prevent the CRA from assuming your silence means missing income, unreported rental activity, or unresolved withholding. It is a preventative measure more than a financial one, yet it can save significant frustration in the future.

Why Professional Non-Resident Support Matters Even When Your Income Is Zero

Because our firm specializes exclusively in non-resident Canadian tax scenarios, we understand these grey areas better than anyone. We routinely help clients determine whether they truly have no filing requirement or whether a simple return will protect them from future issues. Many of our clients come to us believing they are fully exempt, only to discover that an NR4 was issued in their name, or a prior NR6 requires follow-up, or a previous rental year needs to be closed out. Filing a clean, accurate return—even with zero income—is often the simplest way to ensure nothing is left unresolved. Our role is to interpret your situation correctly, communicate with the CRA on your behalf, and ensure you remain fully compliant as a non-resident, regardless of your income level.