A man bought a piece of land with the intention of using a part of it for building his place of residence and exploiting the other part in trade
A man bought a piece of land with the intention of using a part of it for building his place of residence and renting the other part or selling it for a price higher than that he bought it for and buying another piece of land. Must he pay Zakah (obligatory charity) on this land?
(Part No. 8; Page No. 122
No Zakah is due on a land intended for building a personal residence; it is due on a land offered for sale when a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) passes while it is still up for sale, as it becomes, in this case, a commercial commodity. The value of such land is estimated according to its current price at the completion of a full Hawl and 2.5% of the estimated value of the land at that time is paid as Zakah.However, if the owner intends only to rent it or is undecided regarding renting or selling it, then no Zakah is due, as long as the owner is hesitant and has not resolved to sell it. If they intend to rent it, Zakah, in this case, is not due on the asset itself rather on the rent, if it reaches the Nisab and a full Hawl elapses from the time of concluding the lease contract.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.