Residential Zoned Land Tax (RZLT)
RZLT was first introduced in 2022, however 2025 is the first year that a liability is actually payable. For 2025 the due date is 23 May 2025.
This tax applies to:
- sites which are zoned residential or mixed-use
- which are serviced (as defined in the legislation), and
- which are on the local authority map
The rate of RZLT is 3% per annum. It is a self-assessed tax. Where the land is zoned as suitable for residential development and/or serviced after 1 January 2022, tax will be first due in the third year after it comes within scope.
Revenue have issued a very good “quick start guide”, the link to which is here. If you own any property which potentially could be subject to this tax, please read these guidance notes carefully. There are a range of exclusions, exemptions and deferrals outlined in these guidance notes.
Exclusions
- Current residential property that includes garden/yards under 1 acre. For residential property with gardens/yards over 1 acre, the owner must register for RZLT even though there is no liability due
- Residential zoned land that is permitted for use in a business that is liable to commercial rates and provides services to local residents.
- Mixed zoned land that includes residential zoning where the land is used by a business carried out on or beside the land, unless the land is vacant or idle.
- Land subject to the Derelict Sites Levy that is payable in accordance with the Derelict Sites Act 1990.
- Land that is subject to a statutory designation that may preclude development.
- Land that is required or occupied for certain social, community or governmental infrastructure purposes.
- Land that has been included in a written contractual obligation that concluded prior to 2022 and precludes development on the land, subject to further conditions. This exclusion does not apply to connected parties
- Land which appears on the annually revised map for 2025, where the owner submits a request for the rezoning of such land to the relevant local authority between 1 February and 1 April 2025
Landowners may have an option to abate, defer or seek repayments in certain circumstances (e.g. where residential development has commenced or planning permission granted is subject to an appeal).
There are interest, penalty and surcharge implications for non-compliance. There are two separate surcharges, i.e., for under valuations and for late filings; with both of these surcharges being up to 30%. In addition, unpaid RZLT and interest will accrue as a charge on the land. There will also be RZLT clearance requirements where a liable person intends to sell land or there will be a change in ownership (e.g. a gift).
Key dates for landowners
- 27 January 2025: Registration for RZLT is live and available through Revenue Online System. Revenue have published guidance for the registration system.
- 31 January 2025: Final maps published by local authorities.
- 01 February 2025: RZLT will be chargeable for land that met the RZLT criteria on 01 January 2022 or in the course of 2022.
- 23 May 2025: Annual RZLT return and payment. This return has to be submitted even if a deferral is being claimed.
A link to the Kerry County Council map is here
Please let us know if you require any assistance.