The Residential Zoned Land Tax (RZLT) is a new measure introduced to encourage the use of land for housing development. The tax applies to land zoned for residential use but not yet developed. Property owners, landowners, and developers must be aware of this tax to avoid penalties and ensure compliance.
Who Needs to Be Aware?
- Property Owners: Those who own residential-zoned land, even if it is not currently being developed.
- Developers: Those with landholdings intended for housing projects.
- Investors: Landowners holding property zoned for residential use as part of their portfolio.
- Agricultural Landowners: Those whose land may be newly zoned as residential under local authority maps.
Key Actions to Take
- Check the Maps: Review the Residential Zoned Land Tax Maps published by your local authority to confirm if your land is subject to RZLT. These maps are updated annually. Here is a link to the Final Map for 2025.
- Submit Feedback: If you believe your land has been incorrectly zoned, submit an appeal or observation during the public consultation window.
- Register with Revenue: If your land is liable, ensure you register for RZLT through Revenue’s Online System (ROS).
- File a Return: Submit an annual return and pay the tax, calculated at 3% of the land’s market value, by the relevant deadline.
- Review Zoning Status: Engage with your local authority to determine if the zoning of your land can be altered to avoid the tax if development is not feasible.
- Plan Development: Consider developing the land or disposing of it to mitigate long-term tax liabilities.
Land will be subject to RZLT if it was zoned for residential use and serviced on, or before, 1 January 2022. You must file a return and pay any RZLT due for 2025 by 23 May 2025. Failure to comply with RZLT can result in penalties and interest, making early action essential. Understanding your obligations and taking the necessary steps will help you manage this tax efficiently and avoid unexpected liabilities. Click here for details from Revenue.