Residential Zoned Land Tax

What is it?

The 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. RZLT will be calculated annually at 3% of the market value of the land and the RZLT is self-assessed, therefore the liable person determines the market value.

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.

The RZLT will be first due on the 1st of February 2024 and payable on or before the 23rd of May 2024 for land that met the above relevant criteria on the 1st of January 2022. Where land becomes both zoned and serviced after the 1st of January 2022, RZLT will be chargeable in the third year after the year in which it comes within the scope of the tax.

See key dates for the RZLT

Timing

• Draft maps were published by each local authority by the 1st of November 2022 outlining lands within their functional areas which met the relevant criteria to fall within the scope of the RZLT.

• In response, landowners were required to make a submission to their local authority by no later than the 1st of January 2023 if:

o They felt that their lands didn’t meet the relevant criteria to fall within the scope of the RZLT and therefore should be removed from the draft maps.

or

o They wished to change the zoning status of their lands.

For full information on the RZLT read our blog.

Track Record

See some of our most significant sales below.

If you would like to know more about RZLT or our development land services, please get in touch with our experienced team below.

For more information visit Revenue.ie