No zakah is due on land prepared for investment
Machine translationRead the Arabic original
Fatwa number ( 15939 )
Q: Please inform your eminence that my two brothers and I purchased a plot of land in al-Khums with an area of (2400m) and intended to invest in it by constructing buildings
or a project on it. At that time, in 1408 AH, we decided to establish a fuel station project, but as of the date of this letter, the permit for that project has not been issued. The following is requested: 1- From 1409 AH until now, we have been paying zakah up to the past year. 2- The reason for not paying it in the past year, 1412 AH, is that one of the partners incurred a debt, so he contacted the Dawah office since he resides there, and they asked him about the matter and told him: there is no zakah on it until it yields produce. This caused me some concern because it is intended for investment, so I paid my share, which is one-third of the price that the land currently warrants, amounting to (900,000) nine hundred thousand riyals, and my two brothers refused based on the aforementioned fatwa. I hope to receive a written response: Is there zakah on it every year according to its value, or is there no zakah on it until it is invested?
A: There is no zakah on land prepared for investment (i.e., for rental); rather, zakah is due on the rent if it reaches the nisab by itself or when combined with other money, and a lunar year has passed over it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: Please inform your eminence that my two brothers and I purchased a plot of land in al-Khums with an area of (2400m) and intended to invest in it by constructing buildings
or a project on it. At that time, in 1408 AH, we decided to establish a fuel station project, but as of the date of this letter, the permit for that project has not been issued. The following is requested: 1- From 1409 AH until now, we have been paying zakah up to the past year. 2- The reason for not paying it in the past year, 1412 AH, is that one of the partners incurred a debt, so he contacted the Dawah office since he resides there, and they asked him about the matter and told him: there is no zakah on it until it yields produce. This caused me some concern because it is intended for investment, so I paid my share, which is one-third of the price that the land currently warrants, amounting to (900,000) nine hundred thousand riyals, and my two brothers refused based on the aforementioned fatwa. I hope to receive a written response: Is there zakah on it every year according to its value, or is there no zakah on it until it is invested?
A: There is no zakah on land prepared for investment (i.e., for rental); rather, zakah is due on the rent if it reaches the nisab by itself or when combined with other money, and a lunar year has passed over it. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.