ARTICLE
13 March 2024

Residential Zoned Land Tax – Draft Maps Published By Local Authorities

M
Matheson

Contributor

Established in 1825 in Dublin, Ireland and with offices in Cork, London, New York, Palo Alto and San Francisco, more than 700 people work across Matheson’s six offices, including 96 partners and tax principals and over 470 legal and tax professionals. Matheson services the legal needs of internationally focused companies and financial institutions doing business in and from Ireland. Our clients include over half of the world’s 50 largest banks, 6 of the world’s 10 largest asset managers, 7 of the top 10 global technology brands and we have advised the majority of the Fortune 100.
Residential Zoned Land Tax (RZLT) is an annual tax which will apply from 2025 onwards. It aims to incentivise landowners to activate existing planning permissions...
Ireland Real Estate and Construction

What is RZLT?

Residential Zoned Land Tax (RZLT) is an annual tax which will apply from 2025 onwards. It aims to incentivise landowners to activate existing planning permissions and carry out development for housing on identified lands.

How is it Calculated?

It is calculated at 3% of the market value of land within its scope.

What Does it Apply to?

RZLT will apply to land that is zoned as being suitable for residential development and is serviced. Revenue Guidance provides that the term "serviced" means having sufficient access to the public infrastructure required for residential development, such infrastructure including road and footpath access, public lighting, foul sewer drainage, surface water drainage and water supply.

Key Timelines

Annual draft maps identifying land within the scope of RZLT were published by all local authorities on 1 February 2024 and landowners will have until 1 April 2024 to make submissions on whether their land meets the relevant criteria for inclusion as residential zoned and serviced land. Landowners have until 31 May 2024 to make submissions requesting a re-zoning of their land.

The first liability date for RZLT will be 1 February 2025 and this will be based on the annual final map to be published no later than 31 January 2025. The maps will continue to be revised on an annual basis going forward.

Land appearing on the final map may include residential properties but where such properties are subject to Local Property Tax, they will not be subject to RZLT. However, it is noted on the RZLT part of the Revenue website that where the gardens or yards of such properties are greater than 0.4047 hectares, owners will be obliged to register, but not pay, RZLT.

Landowners whose land is included on the annual draft maps recently published by local authorities should review the maps and consider if their land meets the criteria for inclusion. If not, then the above deadlines for submissions (ie 1 April 2024 and 31 May 2024) should be noted.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More