The Residential Zoned Land Tax (“RZLT”) in Ireland targets owners of undeveloped land that is zoned for residential use. By imposing a tax on vacant land, it aims to reduce land hoarding and stimulate the construction of residential properties.
The RZLT was initially introduced in the Finance Act 2021 as part of the government's "Housing for All" plan, aiming to activate vacant, serviced, and zoned land for residential or mixed-use development.
The RZLT applies at a rate of 3% on the market value of such land.
Who is liable?
The persons liable to pay RZLT will be the owners of a “relevant site”. A “relevant site” is determined to be land that has been identified in the relevant local authorities’ RZLT map and is zoned solely or primarily for residential use or a mixture of uses including residential. You are required to review these maps to confirm if your land is subject to the tax.
In order to fall within the scope of the tax, the land must also be:
-
Serviced or it is reasonable to consider that the land may have access to the services necessary for housing to be developed: and
-
Not affected in its physical condition that would exclude the provision of residential development.
RZLT maps are published each year by local authorities. For 2025, draft maps were published on 1 February 2025.
An owner of such land will be liable to file a return and pay the tax on or before 23 May 2025.
Exemptions and Exclusions:
There are a limited number of exclusions from the scope of RZLT, including:
-
Land that is currently being used as residential property including gardens under 1 acre. Please be aware that owners of residential property whose garden is greater than 1 acre are required to register for RZLT if their property is included on an annually revised map. However, they will not have to file an annual return or pay the tax.
-
Land that is zoned for a mixture of residential and other uses, where it is reasonable to consider the land is integral to the operation of a business carried out on or beside it,
-
Residential zoned land that is permitted for use in a business that is liable to commercial rates and provides services to local residents.
-
Land used for certain infrastructure or facilities including utilities, transport, and facilities for social, community or recreational purposes,
-
Sites which are designated as a derelict site and subject to the Derelict Sites Levy, and
-
Land which is subject to a phasing restriction in a development plan and the restriction has not yet been satisfied.
Valuations
As this is a self-assessed tax, it is the responsibility of the landowner to estimate the market value of the residentially zoned land for the purpose of calculating the tax due.
It is highly advisable that that a professional valuation is obtained in order to ensure accuracy and avoid errors that may result in overpaying or underpaying the tax due. However, this is not a requirement.
In general, the property value as at 1 February 2025 will be used for the following three years, subject to any deferral or abatement that may apply. After three years your valuation must be reviewed. The tax is calculated at 3% of the market value of the relevant site.
You must keep documentation and records regarding your valuation.
2025 Rezoning
Please be aware that there is an opportunity for a rezoning request to be submitted to the relevant Local Authority in respect of land which appears on the revised map for 2025 published on 31 January 2025.
If your property appears on this map and you believe it should be excluded (e.g., it's used for commercial purposes or doesn't meet the criteria), you must make a submission to your local authority between 1st February 2025 and 1st April 2025.
Where certain conditions are met, a landowner may claim an exemption from RZLT for 2025 on foot of making such a rezoning request.
In order to claim the exemption for 2025, this request must be submitted to the Local Authority even where a previous rezoning request has been submitted. To claim this exemption, you must register for RZLT and file a 2025 RZLT return by 23 May 2025.
Filing and Payment
The Liable Person on 1 February 2025 must file a Residential Zone Land Tax (RZLT) return on or before 23 May 2025.
RZLT is a self-assessed tax, and interest, penalties and surcharges may apply if you do not comply with your obligations. Please be aware that a penalty of €3,000 will apply where the landowner does not register for RZLT by 23 May 2025 where required to do so.
Deferrals
The RZLT in Ireland includes provisions that allow for the deferral of payment under certain conditions:
- Pre-Development Deferral: If you have obtained planning permission for residential development, you may defer RZLT for up to 12 months from the date of the grant. This deferral period allows time to prepare for construction. However, if the land is transferred during this period, the deferral ceases.
- Deferral Due to Appeals: If your planning permission is under appeal or subject to judicial review by an unrelated party, the 12-month deferral period starts from the date the permission is ultimately upheld. During this period, RZLT is not payable.
- Deferral Due to Development: If you have commenced residential development on the land, you may be eligible to defer the RZLT payment. This recognizes the progression towards making the land available for housing. To apply for this deferral, you must provide evidence of active development to the Revenue Commissioners.
How can we help?
We can advise you on your RZLT filing requirements and obligations. To learn more about RZLT, contact our team of experts.