Revenue has published guidance on the Residential Zoned Land Tax (RZLT) in a new Tax and Duty Manual. RZLT applies to land that, on or after 1 January 2022, is zoned as being suitable for residential development and is serviced, with certain exclusions.

RZLT is an annual tax, calculated at 3 percent of the market value of the land within its scope. An owner of land, which is zoned as suitable for residential development and serviced on 1 January 2022 and where development has not commenced before 1 February 2024, will be liable to file a return and pay RZLT on or before 23 May 2024. Where land comes within the scope of the RZLT after 1 January 2022, the tax will be first due in the third year after it comes within scope.

RZLT will continue to be payable each year unless a deferral applies or the land ceases to be liable to the tax. The tax does not apply to existing residential properties but owners of residential properties with yards or gardens exceeding 0.4047 hectares must register for RZLT, but not pay it.

Each local authority is required to prepare and publish a map, to be updated annually, identifying land within the scope of the tax.

There are a number of exclusions from the scope of the tax which include:

Existing residential property and the garden and yards usually enjoyed with it; · Land which is zoned for residential use, but is used by a business to provide services to residents of adjacent residential areas, such as a corner shop; · Land that is zoned for a mixture of residential and other uses, where it is reasonable to consider the land is integral to the operation of a business carried out on or beside it; · Land used for certain infrastructure or facilities including utilities, transport, and facilities for social, community or recreational purposes; · A site which is designated as a derelict site and subject to the Derelict Sites Levy; and · Land that is affected in terms of its physical condition by considerations which might prevent development, such as contamination or where historic or archaeological artifacts are present. Existing residential property may appear on local authority maps prepared for the purposes of RZLT, nonetheless, RZLT is not payable in respect of residential properties. However, an owner of a residential property that is included on a residential zoned land tax map will be required to register for RZLT if their garden and yards are greater than 0.4047 hectares, but no RZLT is payable.

Contact us to learn more about our services or if you need advice.