Residential Zoned Land Tax

With ever increasing pressure on Ireland’s housing supply, it is hoped that the introduction of the new Residential Zoned Land Tax (RZLT) will facilitate the alleviation of the current crisis.

The RZLT was introduced as part of Finance Act 2021 in an effort to activate vacant land which is serviced and zoned for residential purposes. It seeks to encourage landowners and developers to build residential developments on those lands, as proposed under the Government’s Housing For All – A New Housing Plan for Ireland.

The process for identifying lands which will be subject to the RZLT is being undertaken by the local authorities. Draft maps of the relevant zoned lands can be viewed on their websites. Some local authorities recently prepared supplemental maps, and landowners who maintain that their lands should not be designated under the RZLT are entitled to make submissions to their local authority up until 1 June 2023. If landowners are not satisfied with the outcome, they will thereafter have an opportunity to appeal the local authority’s decision to An Bord Pleanála. It is worth noting that homeowners will not have to pay the RZLT if; they own a dwelling which appears on the local authorities’ RZLT maps and where the property is already subject to Local Property Tax.

On 1 December 2023, final maps will be available on the local authorities’ websites to reflect any zoning changes following submissions and appeals. These maps will be revised on an annual basis from 2025.

The landowners which are zoned under the RZLT will be taxed at a rate of 3% of the site’s market value as of 1 February each year commencing in 2024. Whilst it will replace the existing higher 7% vacant site levy, it is envisaged that the RZLT will affect a much wider scope of land.

This Moran & Ryan LLP material is not intended to provide, and does not constitute or comprise, legal advice on any particular matter and is provided for general information purposes only. You should not act or refrain from acting on the basis of any information contained in this material, without seeking appropriate legal or other professional advice.

If you wish to discuss further, please contact the office on 01 872 5622 or aveale@moranryan.com.

Aideen Veale
Senior Associate
T: + 353 1 8725622
E: aveale@moranryan.com