Q: I bought a flat from the state (through a loan) in the city of
It cost two hundred and fifty thousand riyals. This was in Sha`ban 1411 A.H. The loan should be paid back by installments over a period of 25 years. I used to give out my Zakah (obligatory charity) in Ramadan, and my question is: if the land and entire money I have equals the same value of the debt of the above mentioned flat, should Zakah be waived in this case by this debt?
Zakah is Wajib (obligatory) on land that is intended for sale. If your savings reach Nisab (the minimum amount on which Zakah is due) and a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed, Zakah becomes mandatory on them as well. Your debt to the state and the value of the flat does not waive the obligation of Zakah.May Allah grant us success. May Peace and Blessings of Allah be upon our Prophet Muhammad, his family and his Companions!