The Residential Zoned Land Tax (RZLT) is a new annual tax introduced as part of the Housing for All strategy to encourage landowners to develop residentially zoned and serviced land.
The tax applies to land that is connected to, or is able to be connected to essential services such as water, roads, and lighting but remains undeveloped. The Irish government aims to increase the housing supply by discouraging land hoarding and incentivising property development.
This guide provides a brief but relevant overview of RZLT, its applicability, exemptions, and what landowners need to do to comply with this new regulation.
What is the Residential Zoned Land Tax (RZLT)?
The RZLT is an annual tax of 3% of the market value of land that meets the following criteria:
- Zoned for residential use
- Has access to necessary infrastructure such as roads, water, and electricity
- Not currently developed for housing
The tax applies to landowners, developers, and businesses that hold eligible land within designated areas but are not putting it into any use.
What is the Objective of RZLT?
- The tax aims to increase housing supply by encouraging the development of unused, residentially zoned land.
- By imposing an annual charge, the government hopes to prevent speculative land banking and ensure that more land is used for housing construction right now.
Who Needs to Pay RZLT?
- Landowners whose properties are on the annual RZLT map
- Land zoned for residential development and serviced with infrastructure
- Landowners who hold development rights over applicable properties
Note – Existing residential property may appear on Local Authority RZLT maps, but they are exempt. However, if your garden and yards are greater than 0.4047 hectares (1-acre), you will need to register for RZLT, but there is no RZLT payable.
Who is Exempt?
According to MHC Legal, the following types of land are excluded from RZLT:
- Existing residential properties that are subject to Local Property Tax (LPT)
- Land with mixed-use zoning where the site is integral to a business operating on or beside it
- Sites used for essential infrastructure, including utilities, transport, social, and community facilities
- Derelict sites already subject to the Derelict Sites Levy
- Land subject to a phasing restriction in development plans
Key Dates and Payment Deadlines – 2025
- 1 February 2025 – First liability date for RZLT.
- 23 May 2025 – Final payment deadline for any property liable on 1 February 2025
- Annually updated maps – Local authorities publish revised RZLT maps each year to reflect zoning changes
Landowners will be required to self-assess the market value of their land and submit their tax return through Revenue’s Online System (ROS).
How to Check If Your Land is Liable for RZLT
Local authorities publish annual RZLT maps identifying lands subject to the tax. The 2025 final maps were published by 31 January 2025.
To check your land’s status:
- Visit your local authority’s website and review the latest RZLT map.
- If your land appears on the map, confirm whether it meets the zoning and serviceability criteria.
- If your residential property is liable for Local Property Tax (LPT), you are not subject to RZLT.
If you believe your land should not be included, you can submit a request for correction or rezoning.
What to Do If Your Land is Included in the RZLT Map?
1. Making a Submission or Appeal
If your land appears on the RZLT map but should be excluded, you have the right to appeal:
- Submit a correction request to your local authority before April 1.
- Appeal rejections to An Bord Pleanála by August 1
- Request rezoning of land by May 31 (local authority decision by July 31)
2. Deferral of RZLT
RZLT payment can be deferred in limited cases:
- If an appeal or judicial review is pending regarding planning permission
- If a commencement notice for residential development has been lodged
- If a planning condition restricts development until certain criteria are met
Concerns and Controversies
1. Opposition from Farmers
Understandably, the Irish Farmers Association (IFA) strongly opposes RZLT on farm land that is actively used for agricultural purposes. Farmers argue that they are not speculative landowners and should be exempt, similar to previous exemptions under the Vacant Site Levy.
2. Impact on Landowners
Some landowners may face significant financial pressure due to RZLT, especially those who do not have immediate plans or financial means to develop their land. While exemptions exist, many landowners will need to engage with local authorities to ensure their land is correctly classified.
How to Register for RZLT
If your land is liable for RZLT, you must register with Revenue through ROS or myAccount.
Information Required for Registration:
- Property address and folio number (if available)
- Parcel ID from local authority maps
- Size of the land (in hectares)
- LPT Property ID (if applicable)
- Date the land became liable for RZLT
- Owner’s Tax Identification Number
Once registered, each relevant site is assigned a unique Site ID, which is used for tax filing and payment.
Conclusion
The Residential Zoned Land Tax (RZLT) is a major step in addressing Ireland’s housing crisis by pushing landowners to develop residentially zoned land. However, it presents significant challenges, especially for farmers and landowners who may be unintentionally affected.
To avoid unexpected tax liabilities, landowners should review the published RZLT maps, engage with local authorities, and register or appeal where necessary.
With the first payment deadline set for 23 May 2025, it is crucial for landowners to take action now to ensure compliance with this new tax regulation.
SOURCES
- https://www.citizensinformation.ie/en/money-and-tax/tax/housing-taxes-and-reliefs/residential-zoned-land-tax/
- https://www.mhc.ie/latest/insights/residential-zoned-land-tax
- https://www.ifa.ie/residential-zoned-land-tax/
- https://www.revenue.ie/en/property/rzlt/registering/agents.aspx
- https://www.irishexaminer.com/property/commercial/arid-41574589.html
