Originally Posted by Dinanstu
16" will clear the brake caliper.
Bolt pattern is the same.
Put them on the front to see if the offset affects the turning radius (rubbing) and struts.
Nope, they won't clear the brakes. There is only a couple of very specific models of aftermarket 16" rims that will fit the e36 M3 (chances that OP has either of them is pretty much zero).
Otherwise, non-M3 e46 has the same bolt pattern and offset as e36 and all the wheels are interchangeable(assuming they clear the brakes of course).