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.