Search In Fatwa

Zakat on non-agricultural land and property

Question

I have multiples of non-agriculture lands and property. How the Zakaat applies on land and property? I know about gold and cash point of view.

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

If this property and land are prepared for business and you expect a profit from them, then Zakat of properties prepared for business has to be paid. If a complete lunar year elapses on the origin of its price which is the minimum amount liable for Zakat, i.e. what is equivalent to 85 grams of gold or more, then 2.5% has to be paid. However, if this property and land is not prepared for business but for dwelling and renting, then there is no Zakat to be paid on their value, but Zakat has to be paid only on the profit when a complete lunar year elapses and if the amount reaches the minimum amount liable for Zakat as previously discussed.

Allaah knows best.

Related Fatwa