New measures have been introduced in relation to the Residential Zoned Land Tax (RZLT).
Below is a quick guide containing key information and dates covering what you need to know about RZLT.
What is RZLT, why was it introduced and what's the cost?
RZLT is an annual tax payable by owners of certain land within its scope on 23 May 2025. The introduction of RZLT was provided for in "Housing for All", the Government’s housing plan to 2030, as a measure to increase supply and incentivise development on land that is serviced and zoned wholly or partly for residential use.
The rate of RZLT is 3% of the market value of the land which is self-assessed by the landowner.
Why is it topical and what's new?
The Finance Act 2024 now provides that landowners, including farmers, can submit a rezoning request to the relevant local authority in respect of land that appears on the final map published on 31 January 2025. The deadline for such rezoning requests is 1 April 2025, and if successful the relevant land will be exempt from RZLT. To claim this exemption, a landowner must register and file return by 23 May 2025.
We are also aware that certain landowners have objected to their sites being included on the map and there are several Judicial Review proceedings pending before the courts in relation to the decision to put certain sites on the map.
What land is in scope?
RZLT applies to land that is:
(a) zoned for residential development - primarily or solely zoned for residential use or zoned for a mixture of uses including residential);
(b) serviced i.e. connected or able to be connected to the necessary public infrastructure and facilities; and
(c) not affected in its physical condition to an extent that would preclude residential development.
Who decides which land is liable and who administers it?
The local authorities must publish a final RZLT map on 31 January in each year showing lands subject to RZLT. However, the local authorities do not administer the tax and all queries regarding the administration of the tax should be made to the Revenue Commissioners.
Do any exemptions or exclusions apply?
Yes, and they include the following:
a) residential properties subject to Local Property Tax;
b) land used to carry on a business that is liable to commercial rates and provides services to local residents (eg local shop);
c) lands subject to the Derelict Sites Levy; and
d) land used for certain infrastructure or facilities including utilities, transport and social, community or recreational purposes.
Deferral of RZLT
Where a commencement notice is lodged in respect of a residential development, RZLT is deferred until (i) the date the works permanently cease, (ii) there is a change in ownership or (iii) the planning permission expires.
An owner may also seek deferral of RZLT in certain other circumstances.
What Key Dates should you be aware of?
| 31 January 2025 | Each local authority published annual final map for 2025 identifying land zoned for residential use and serviced on 1 January 2022 or becoming so zoned and serviced during 2022.
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| 1 February 2025 | First liability and valuation date for RZLT based on the annual final map for 2025.
Local authorities publish annual draft maps for 2026. Landowners may make submissions regarding land identified on these maps up to 1 April 2025.
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1 April 2025 Deadline Date | Deadline for submitting request to Local Authority for change of zoning in respect of land included on the annual final map for 2025.
Deadline for criteria-based submissions in respect of the annual draft map for 2026 published on 1 February 2025 to local authority for inclusion or exclusion of relevant land from the 2026 map.
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| 23 May 2025 | File and pay deadline A return is to be submitted by this deadline even if a deferral is being claimed. |
If you would like to discuss the application of RZLT to your land, please contact Conor McEvoy, Barry Cahir or your usual contact in Beauchamps LLP.