Article by Shane O’Connor, Head of Development Land, at Lisney. (soconnor@lisney.com)

What Landowners Need to Know About the New Residential Zoned Land Tax (RZLT)

A significant new tax measure took effect earlier this year that could have serious implications for landowners across Ireland. The Residential Zoned Land Tax (RZLT), introduced in February 2025, is designed to encourage the development of land that has been zoned for housing and it’s something landowners should pay close attention to.

Why Was the RZLT Introduced?

At its core, the RZLT is a tool to help tackle Ireland’s ongoing housing supply issues. By placing an annual charge on undeveloped land that’s already zoned for residential use and has access to essential services like water, roads, and electricity, the Government hopes to motivate landowners to either proceed with development or make their land available to those who will.

The ultimate goal is simple: increase the pace at which new homes are delivered.

How Does It Work?

If your land falls within the scope of the RZLT, you’ll be required to pay 3% of its current market value every year. This applies to land that is:

• Zoned specifically for residential development, and

• Serviced, or capable of being serviced, by key infrastructure.

It’s worth noting that most existing homes are not affected by this tax. If a property is already subject to the Local Property Tax (LPT), it is classified as a residential property and therefore exempt from the RZLT.

If you own land zoned for residential development, now is the time to act. Start by reviewing the most recent RZLT maps published by your local authority. These maps are updated periodically and identify the plots of land currently subject to the tax. It’s also important to assess whether you may be eligible for an exemption, as there are specific reliefs that may apply depending on your land’s status and use. The introduction of the RZLT adds another layer of complexity to land ownership and development planning in Ireland.

If you’re unsure about how this tax impacts you or your property portfolio, our team at Lisney is here to help.