Selling or transferring a site
When selling, buying or transferring a property, there are certain obligations on both the seller/transferor and the buyer.
As the seller/transferor, you must make sure that all Residential Zoned Land Tax (RZLT) obligations have been met before completing the sale. This means that all RZLT payments must be up to date, and you must have submitted your RZLT returns to Revenue.
You can check your RZLT record on the RZLT Online Portal through myAccount or Revenue Online Service (ROS).
As the new owner of the relevant site you are obliged to register for RZLT.
Note
If you are the liable person for a property on the liability date, 1 February, you are liable to pay RZLT for that year.
- Example 1
Pat is the liable person for a relevant site on 1 February 2025. He sells his relevant site in March 2025. Even though he does not own the relevant site for most of 2025, he is the liable person for the 2025 RZLT pay and file obligations in respect of the site.
As such, he is required to pay the full liability for 2025. The buyer becomes the liable person for RZLT on 1 February 2026 and shall have pay and file obligations for RZLT from 2026 onwards.
What should you do before completion of the transaction?
Prior to the completion of the transaction, the person transferring or selling the relevant site, must file an RZLT Transfer or Sale Return with Revenue.
This return will require certain information in relation to the relevant site, the liable person(s) and the purchaser(s).
The seller of a relevant site must make sure that all RZLT obligations have been met. This means that you should:
- pay all outstanding RZLT and accrued interest
- seek to agree, or have determined, and pay any penalty due in respect of the site, and pay same
- and
- submit all outstanding RZLT returns including the RZLT return required prior to the completion of the sale.
- Example 2
Rita owns 2.5 hectares of land that is a relevant site for the purposes of RZLT. Rita has filed RZLT returns and paid the tax due in respect of the relevant site for 2025 and 2026. She has not commenced development of the site.
In September 2026, Rita decides to sell the site to Frank. Prior to the completion of the sale, she is obliged to file an RZLT Transfer or Sale return with Revenue. She is required to provide information in relation to the relevant site, herself as the liable person and Frank as the the purchaser.
Frank purchases the site from Rita. The sale is completed in November 2026. Frank’s first liability date in respect of the relevant site is 1 February 2027. This is the first year that Frank is liable to RZLT in respect of the relevant site. 1 February 2027 is the valuation date for the purposes of calculating his liability to RZLT for 2027.
In the context of the sale or transfer of a relevant site, Revenue will confirm the RZLT position of the site to the seller.
Revenue will confirm through Revenue Online Service or myAccount, at that point in time, that:
- There are no outstanding amounts of RZLT payable
- or
- there is unpaid tax, accrued interest or a penalty owing in respect of the relevant site.
Revenue will also confirm if there are any RZLT returns outstanding.
It should be noted that as RZLT is a self-assessed tax, this confirmation is informed by the details provided by the liable person to Revenue.
Note
‘Sale’ applies to changes of ownership that take place by, for example, transfers, gifts and inheritances.
A transfer also includes the compulsory acquisition of land, the giving of notice to compulsorily acquire land as well as the entering into a lease by the owner for a duration of 35 years or more.
Unpaid RZLT liabilities and charges on relevant site
Before selling a relevant site, the seller or transferor shall pay any outstanding RZLT liability due before the date of sale.
The liability includes:
- unpaid RZLT amounts due and owing
- accrued interest
- and
- any penalty amount that was agreed or determined in relation to a vendor's self-assessment or a Revenue assessment.
The seller or transferor of the relevant site shall also submit all outstanding returns.
Any outstanding liability that is not paid by a seller or transferor is and remains a charge on the land to which it relates.