The Residential Zoned Land Tax (RZLT) is an annual tax calculated at 3% of the market value of land that is zoned for residential use and adequately serviced.
The first liability date for RZLT is February 1, 2025. Landowners must file a return and pay any RZLT due for 2025 by May 23, 2025.
What are the options for avoiding the tax burden?
For farmers, if their agricultural land is zoned for residential use and serviced, it may fall within the scope of RZLT. However, the government has provided measures to address concerns from farmers.
In Budget 2025, it was announced that landowners, including farmers, can avail of an exemption from RZLT in 2025 if they seek to have their land rezoned to reflect its current agricultural use.
The minister for Housing, Local Government and Heritage will issue guidelines to local authorities, indicating that they should consider and accommodate rezoning requests where landowners wish to continue existing economic activities, such as farming.
This measure ensures that active farmers are not unduly burdened by the tax, provided they engage with local authorities to have their land rezoned appropriately.
RZLT
It is important for farmers to stay informed about the guidelines and timelines for making such rezoning requests to ensure they can avail of the exemption.
The time it takes for a rezoning request in Ireland can vary depending on the local authority and the complexity of the request. The process generally includes:
- Submitting the request: You’ll need to provide detailed documentation, including proof of ownership, reasons for rezoning, and relevant maps;
- Public consultation: The local authority may invite public submissions, allowing others to support or oppose your request;
- Evaluation and decision: The local authority reviews the request in light of planning and development guidelines before making a decision;
- Appeals (if needed): If the rezoning is denied, you might have the option to appeal to An Bord Pleanála.
From start to finish, this process can take anywhere from a few months to over a year.
E.g., when Meath County Council handled the RZLT maps, the entire cycle — from draft maps to final decisions — spanned several months. To get a better idea of the timeline for your specific case, it’s best to check with your local authority directly.
The solution
NewKey Homes is a development company based on the east coast of Ireland in Drogheda, Co. Meath.
Established in 2013 by Ronan O’Reilly, NewKey has delivered a range of award winning developments in both the Residential and Commercial space.
NewKey is predominantly financed by Bank of Ireland as the senior lender on the majority of its developments. Uniquely, Ronan is from a farming background and understands the frustration of this new Tax Burden to Irish farming households.
“We are here to assist farmers affected by the Zoned Land Tax (ZLT) in various ways. Walking you through the steps and options for your land in a professional and discrete manner,” he said.
1. Development partnerships
NewKey Homes can collaborate with farmers who own land zoned under the ZLT criteria. By forming partnerships, the company can develop the land into housing or mixed-use projects, aligning with zoning requirements. This approach benefits farmers by:
- Avoiding the financial burden of the ZLT;
- Unlocking the potential value of their land through development.
Farmers can either co-develop projects or sell portions of their land to NewKey Homes for immediate returns. Perhaps allowing other lands to be purchased locally to replace the Zoned land that is to be developed.
2. Expert guidance on exemptions
Farmers may not always be aware of exemptions under the RZLT for active agricultural use. NewKey Homes can connect farmers with our planning team to:
- Confirm whether their land qualifies for exemptions;
- Guide them through the appeals process if the land is incorrectly zoned.
By helping navigate these complexities, NewKey Homes ensures farmers avoid unnecessary tax liabilities.
3. Land valuation and strategic sale options
Determining the true market value of zoned land is crucial for farmers, especially in deciding whether to hold, develop, or sell. NewKey Homes offers:
- Accurate land valuation based on current market conditions;
- Transparent purchase options, allowing farmers to sell land at competitive rates without navigating the open market.
This approach helps farmers make informed decisions about their land assets.
4. Infrastructure development expertise
For farmers interested in retaining their land but unsure how to develop it, NewKey Homes can provide:
- Expertise in planning and executing infrastructure upgrades needed to meet zoning requirements;
- Turnkey solutions, transforming raw agricultural land into developable plots ready for sale or long-term projects.
This service is particularly useful for farmers unfamiliar with the requirements for residential or mixed-use development.
5. Community-centric development solutions
NewKey Homes specialises in creating award-winning developments that respect local communities and environments. Farmers partnering with the company can influence the nature of projects on their land, ensuring:
- Minimal disruption to surrounding agricultural operations;
- Developments that benefit the local area, such as affordable housing or mixed-use schemes.
6. Mitigating financial risks
The Zoned Land Tax can impose significant costs if farmers fail to develop or sell affected lands. NewKey Homes offers solutions to:
- Reduce the financial burden of holding unused land;
- Create income opportunities through phased developments or partial sales.
Farmers can mitigate risks by leveraging NewKey Homes’ resources and expertise, ensuring compliance with tax regulations while preserving financial stability.
7. Advocacy and representation
NewKey Homes, with its understanding of local zoning laws and housing policies, can act as an advocate for farmers in discussions with local authorities. They can assist in:
- Re-zoning efforts for lands unsuitable for development;
- Proposing practical development timelines to avoid immediate tax penalties.
Speak to NewKey Homes today should you wish to avail of our expertise. It plans to provide farmers with tailored solutions to navigate the challenges of the Zoned Land Tax.
Whether through partnerships, land purchases, or advisory services, the company ensures farmers can make the most of their zoned lands while minimising risks.
Farmers are encouraged to engage early with NewKey Homes to explore options and secure the best outcomes for their land and livelihoods.
Email [email protected].
