Residential Zoned Land Tax

The Finance Act of 2021 introduced the Residential Zoned Land Tax. It applies to lands which, on or after the 1st of January 2022, are zoned as being suitable solely or primarily for residential use (and serviced for development as such).


Where Agricultural Land meets this criteria, owners of Agricultural Land will be liable for the Residential Zoned Land Tax. Existing residential properties may appear on zoned land maps as published by each Local Authority however, they are excluded from the scope of the tax. There is however an obligation to register with Revenue Commissioners where the curtilage of the residential property is greater than one acre.

In general, the following types of properties are excluded from the tax:-

  1. Residential dwellings and gardens, mixed-use land – only vacant or idle land is included within the scope of the tax.
  2. Facilities for utilities, social, community or recreational purposes.
  3. Land which, although zoned residential may be a rateable business and provides services to local residents such as a neighbourhood shop.
  4. Land designated as a derelict site under the Derelict Sites Act of 1990.
  5. Lands which have a physical condition which may impact on the ability to provide housingon the land.

Residential Zoned Land Tax will apply annually at a rate of 3% of the market value of the land. The land will be re-valued every three years from the initial valuation date. The valuation is done on a self-assessment basis by the property owner who will determine the market value however, surcharges will apply if the land is later found to be undervalued. The Residential Zoned Land Tax is administered by Revenue Commissioners and not the Local Authority.

Landowners will become liable for the first payment under Residential Zoned Land Tax on the 1st of February 2024 which will become payable in May of 2024 for all applicable land as of the 1st of January 2022.

Where the land becomes zoned or serviced in subsequent years then the Residential Zoned Land Tax will only apply in the third year after the year in which it comes within the scope of the tax.

The Residential Zoned Land Tax will cease to apply when homes are developed on the site and completed, where the land is zoned for mixed-use and where non-residential development commences or where the zoning has changed such that it is no longer suitable for residential development.

For further information, please contact our office on 051-877029.

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