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Zakah on land during the period of its construction

Q: I have a villa under construction on a plot of land, which is mine. I intend to sell it. It should be noted that the period of construction may take two years. How should I calculate the due Zakah (obligatory charity) on it? Is Zakah due during the first year of construction or after the completion of construction after two or more years? (Part No. 8; Page No. 105


A: No Zakah is due on the villa you are building during the period of construction even if it takes two or more years unless you intend to sell it before completing the construction under any accidental occasion or need. If there is an intention to sell it, Zakah will be due after the passing of a full Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) from the time when the intention of sale takes place when the villa is still unsold. Thus, it should be evaluated by the end of the Hawl according to the spot price and 2.5% of its value should be paid as due Zakah. Similarly, if you continue the construction until the villa is ready for residence and then you intend to put it up for sale, Zakah will be due after the passing of one Hawl from the time you intended to sell it. That is because the villa in this case and the previous one becomes a commercial commodity, for it is put up for sale. It should be evaluated by the end of the Hawl and the Zakah should be 2.5% of its value. The ruling is applicable on a yearly basis; whenever the Hawl passes, it should be evaluated and 2.5% should be paid as Zakah as long as it is not sold.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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