Assalam o Alaykum I have a question regarding Zakat payable on the land that I buy. I am a working woman and I had bought a commercial plot with my earnings for the purpose of constructing my apartment on one floor and give the other floors on rent. This is only a plot and there is no building on it yet. At the moment I have some money and I intend to buy another plot so that when I retire and go back to my country, I can sell that plot and construct the building on my first plot. I will also inherit land from my father. I do not know if he has already transferred those lands on my name or not but it is in my knowledge that he has bought some resedential land for me. So, for now I am not sure if I will construct my house on my plot or the one that I will inherit from my father. If I continue earning, I will spend my money in buying more land. At the moment there is no money being generated from any of these lands. I want to know if I have to pay Zakat on any of these lands and the lands that I plan to buy in future? Also, if my husband buys any land from his earning that he intends for us to build a house on then I may not use my land for building my house but I may give it to my daughter when she grows up. Kindly clarify the matter of paying Zakat on land. JazakAllah Khair
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, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
You are obliged to pay Zakah on all the money that you possess and which you are preparing for purchasing a land, or for other purposes, if it reaches the Nisaab (minimum amount liable for Zakah) and a whole lunar year elapses over it while in your possession.
The Nisaab is the equivalent of nearly 85 grams of pure gold or the equivalent of nearly 595 grams of pure silver.
As regards the land which you purchased with the intention of building on it, then you are not obliged to pay Zakah on it as it is not considered as tradable commodities. With regard to what you may inherit from your father, you do not have to pay Zakah on it because it is not yet in your possession.
Therefore, if your father had gifted you some of this land and you possessed it and you had the intention when possessing it that you will use it for trade, or that you will purchase in the future a land and intend to use it for trade, then, in this case, you should evaluate it when a whole lunar year elapses over it and then you must pay 2.5% of its value as Zakah.
Concerning the gift that has not yet come into your possession, then you are not obliged to pay Zakah on it (as you do not own it).
Allaah Knows best.
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