There are changes to the Local Property Tax which will take effect from 2026 onwards.

• The LPT applies to the owners of all residential property in Ireland, even if resident outside Ireland. This includes main homes, second/holiday homes and rental properties
• For the years 2026 to 2030 inclusive the LPT will be based on the market value of the property on 1 November 2025
• For properties with a value of up to EUR2.1m, the amount of the LPT will be based on the valuation bands set out in the attached table
• For properties with a value in excess of EUR2.1m the LPT is calculated as follows; tax rate of 0.0906% up to EUR1.26m, 0.25% on the next EUR840,000 and 0.3% on the excess above EUR2.1m
• Local councils have the ability to increase or decrease the base LPT charge by up to 15%
• The LPT for 2026 is due on 9 January 2026. If making a single payment by bank transfer, the tax is due on 20 March 2026. It is also possible to pay by monthly direct debit, with the first payment being made on 15 January 2026.

Valuation

You must make a self-assessment of the value of your property as at 1 November 2025 and have documents to support the valuation you have used i.e. a formal valuation report, details from the Property Price register of similar properties sold in the last 12 to 18 months. Revenue does provide an interactive valuation tool to assist you in valuing your property. This valuation tool indicates the average valuation band for properties in your immediate area. It does not reflect a specific market value for any individual property.

Revenue may include on your LPT record an estimate of the LPT charge for 2026 which is based on an estimate of the value of the property. However, you cannot rely on this estimate in the event of a Revenue enquiry into the valuation so you should retain documentation to support whatever value or valuation band you have chosen.

Action required by you by November 2025

You will need to take the following action by 7 November 2025:-

• Determine the market value of your property as at 1 November 2025
• Submit your LPT return including the valuation
• Select your payment option for the LPT charge for 2026 which is done as part of your LPT return

Exemption

• Property where the owner has left due to long term illness or infirmity
• Property owned by certain charities and used for recreational activities of the charity
• Property subject to commercial rates and wholly used as a dwelling e.g. guesthouse
• Property which is the residence of a severely incapacitated individual
• Registered nursing home
• Property which has been damaged by pyrite or is eligible for the Defective Concrete Blocks Grant Scheme.

If you require any assistance with your LPT obligations, please do not hesitate to contact one of our team.

Local Property Tax – valuation bands

With effect from 1 January 2024 a new reporting requirement has been introduced in respect of certain interest free loans. As a result a gift tax return, also known as a capital acquisitions tax (CAT) return, must be filed by the recipient of a “specified loan” from a close relative. This note explains the new reporting requirement and what action is required by you.

What is a specified loan?

A specified loan is any loan, advance or any form of credit that is:

• Made to a person by a close relative of the person
• Made by a company to a person where a beneficial owner (e.g. shareholder) of the company is a close relative of that person
• Made to a company, where a person is a beneficial owner of the company and the person making the loan is a close relative of that person
• Made by a company to another company where the person is a beneficial owner of the second company and a beneficial owner of the first company is a close relative of that person.

Who is a close relative?

In relation to a person, a close relative includes:

• A parent
• A grandparent or great grandparent
• A sibling
• An aunt or uncle
• A grandchild or great grandchild

What specified loans need to be reported?

If all the following conditions are satisfied, then the specified loan must be reported to Revenue:

• The loan is deemed to have given rise to a gift under CAT legislation. This means a loan on which no interest is charged or a below market rate of interest is charged during the calendar year,
• No interest is paid on the loan within 6 months of the end of the calendar year and
• The balance outstanding on the specified loan, when aggregated with the balance outstanding on any other specified loans, exceeds EUR335,000 on at least one day in the calendar year.

Who reports the specified loan?

The person responsible for reporting the specified loan is the recipient of the loan, who should report the loan on a CAT return.

What information must be reported?

The information to be reported is as follows:

• The name, address and tax reference number (i.e. PPS number) of the lender(s)
• The balance outstanding on the loan(s)
• Such other information as the Revenue Commissioners may reasonably require.

When must this be reported?

The annual “gift” arising from a specified loan is deemed to have been received on 31 December. As the new reporting requirement only came into effect from 1 January 2024, the general view is that the first returns reporting the loans will be due on 31 October 2025, in respect of the calendar year ending on 31 December 2024.

However, there is also a view that there is an earlier reporting requirement and that reportable specified loans that were in place on 31 December 2023 must be reported by 31 October 2024. Clarity on this point is being sought from Revenue.

Action required by you

Reporting the loan

If you have a specified loan that is reportable then you will need to file a CAT return in respect of this loan. In line with the general view, it is our view that the first filing date for such a loan will be 31 October 2025, subject to Revenue confirming 31 October 2024 as an earlier filing date.

The reporting of the loan will put the loan on record with Revenue. This would be helpful in the event of a future Revenue enquiry into the nature of funds provided between close relatives.

Not reporting the loan

There may be options available to you if you do not want to report a loan.

• The terms of the loan can be changed to charge a nominal amount of interest and this interest should be paid within 6 months of the year end. Given there is some doubt over whether the new reporting requirement applies to loans that were in place prior to 1 January 2024, if you chose this option then we recommend that the loan terms are changed and interest is paid by 30 June 2024 at the latest
• Change the terms of the loan so that a market rate of interest is charged on the loan. This would remove the reporting requirement for 31 October 2025 but would not do so if Revenue indicates that there is a reporting requirement for 31 October 2024.

If you want to consider either of these options further or require assistance with the filing of a CAT return please do not hesitate to contact us.

What is RZLT?

• This is a tax on land zoned for residential development and serviced (i.e. has
• access to infrastructure such as water, roads, sewerage)
• Local authorities are required to publish updated maps each year showing land
  subject to RZLT (“annually revised maps”)
• The first liability date was 1 February 2025, with returns and payments due by 23
  May 2025
• The tax rate is 3% of the market value of the land
• RZLT is payable each year unless an exemption or deferral is claimed.

What land is excluded?

• Residential properties already subject to Local Property Tax (LPT) including
• gardens up to 1 acre
• Land used for social or community infrastructure, e.g. schools, hospitals, parks
• Land required for public infrastructure such as roads, schools, and utilities
• Land zoned for residential use that is in use by a business liable to commercial
  rates providing services to local residents
• Land zoned for mixed use where it is reasonable to consider that the land is not
  vacant or idle
• Derelict sites already subject to the Derelict Sites Levy
• Land subject to physical conditions or statutory designations that prevent
  development (e.g. contamination, heritage protection)
• Land designated for phased or future development in a local development plan.

Exemptions

• 1. Where the landowner makes a rezoning request.
• 2. A development cannot proceed due to a judicial review or appeal of a planning
  decision, or
• 3. The land is subject to a pre-existing contractual obligation entered into prior to 2022 that restricts development.

In certain circumstances, such as where residential development has commenced or
where planning permission has recently been granted in respect of development on
the land, it may be possible to defer the payment of RZLT. The liability may ultimately
fall away in certain prescribed circumstances (eg where development is completed on
the site in line with planning permission).

It is important to note that to claim an exemption (or deferral) you must register for
RZLT and file a 2025 RZLT return by 23 May 2025.

Who is the liable person?

• The liable person for RZLT is generally the registered owner of the land on the
• liability date (1 February 2025)
• In the case of unregistered land, the person entitled to receive the income from the
  land or who would be entitled if it were rented
• Any other person whose interest in the land entitles them to develop the land
• If land is held jointly by more than one individual, only one RZLT return needs to
  be filed for the land, but the details of all owners must be included.

Action required by you

• (i) Check if you own land included on the annually revised RZLT map published here.
• (ii) Register land with Revenue via ROS / MyAccount.
• (iii) File your RZLT return and pay by 23 May 2025.

Example

Kate owns a house with a garden of 1.5 acres. She has already valued her home and
1 acre of her garden for LPT purposes and pays LPT accordingly. An annually revised
map prepared by her local authority has included her property. Although she is not
liable to pay RZLT because her property is subject to LPT, she must still register for
RZLT due to the garden exceeding 1 acre.