Residential Zoned Land Tax

What is it?

The Residential Zoned Land Tax (RZLT) is a new tax that was introduced as part of the Finance Act 2021. Its aim is to incentivise the activation of zoned and serviced residential or mixed-use (including residential) lands in order to increase the supply of housing to the market.

In order to fall within the scope of the RZLT the land must be zoned residential or mixed use (including residential) within a Development Plan, Strategic Development Zone Planning Scheme or a Local Area Plan. Importantly the land must be serviced. Serviced land is defined as having access to public infrastructure and services necessary for homes to be developed.

If you own a liable site, or if you own a site that will become a liable site in the near future, it is very important to engage early and understand the pitfalls of non-compliance.

What is the RZLT rate?

RZLT will be calculated annually at 3% of the market value of the land. The RZLT is self-assessed, therefore the liable person determines the market value. Market value is defined as a price in which an asset might reasonably be expected to achieve on a sale in the open market.

For late submission or undervaluation, surcharges of from 10% to 30% can apply together with interest of 8% per annum.

When is the RZLT due?

Where land met the relevant criteria on 1^st January 2022, RZLT is charged on 1^st February 2025 and payable on or before 23^rd May 2025.

Where land first meets the relevant criteria after 1^st January 2022, RZLT may be charged in the third year after the year in which it met the criteria. As such, land that first met the criteria in the course of 2022 will first be liable to the tax on 1^st February 2025. If a site met the relevant criteria during 2025, the liability date would be 1^st February 2028.

The 2026 maps for RZLT were published by Local Authorities on 31^st January 2026. The relevant date for valuation in 2026 is 1^st February 2026 with a return due on or before 23rd May 2026.

Who is liable to pay the RZLT?

The liable person can include the property owner, a trustee or any person whose interest will allow them to activate zoned and serviced residential or mixed-use (including residential) lands.

Are there any other exemptions?

Exemptions exist for zoned and serviced residential or mixed-use (including residential) lands where:

• The lands are unable to be developed due to the need for significant remediation.
• The lands are known to contain significant archaeological remains.
• The lands are used for certain infrastructure or facilities including utilities, transport, social, community or recreational purposes.
• The lands are currently on the Derelict Sites Register and which a levy is payable in accordance with the Derelict Sites Act 1990.
• The lands are considered integral to the operation of a business carried out on or beside it.

Finance (No. 2) Act 2023 inserted a provision to allow any landowner, including farmers, to apply to have their land zoning changed, where that land is included on the annual draft map for 2025. Should a landowner wish to amend the residential or mixed use zoning of their land where it is identified on the RZLT map, they can request a variation of the zoning within the appeal period.

Key dates for the RZLT

• 31^st January – Final Maps published by Local Authorities 
• 1^st February – Liability and Valuation date
• 1^st April – Submission deadline for map changes / exemptions / de-zoning
• 23^rd May – Tax Return due date
• 30^th June – Deadline for Local Authorities to respond to de-zoning requests
• 1^st July – Deadline for Local Authorities to respond to submissions
• 1^st August – Deadline for Landowners to appeal the Local Authority decision to An Coimisiún Pleanála

What action terminates the landowners RZLT liability?

Landowners will remain liable for the Residential Zoned Land Tax until one of the following happens:

• Homes are built on the site. Although the RZLT may be deferred during construction, it is only when the homes are built that the land falls outside the scope of the RZLT.
• Where the land was zoned for both residential and other development, and permission is granted for development other than residential, the land will fall outside of the scope of the RZLT upon the commencement of the construction of the non-residential development.
• If the zoning of the land is changed.
• If it is found, after the production of the final map, that the land cannot be developed, for example because archaeological remains were discovered, the land will fall outside the scope of the RZLT.

Where RZLT, including any interest, remains unpaid, it becomes a charge on the land. This means the property cannot be sold or transferred free of this encumbrance without paying the outstanding amount of RZLT and interest.

If you have any questions or require any advice in relation to any aspect of the Residential Zoned Land Tax, please contact Knight Frank’s Development Land Team at (01) 634 2466 or at enquiries@ie.knightfrank.com

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For more information visit Revenue.ie