The Ruling on the Zakah of Land Prepared for Residence or for Rent

Question:
He says in his letter: I have one hundred square meters of building land in my country, and I have not built on it yet. Knowing that the price of the meter is ninety pounds, is there zakah on it, given that I intend to build a structure on it for myself and rent it out?

Answer:
If the land is for residence or for rent, there is no zakah on it. Zakah is only due on it if it is for sale for trade. As for if he intends to build a house on it for residence or for renting, or to make it a farm, there is no zakah on it. However, if it is for renting, then he pays zakah on the rent only. He pays zakah on the rent when a lunar year has passed over it and it reaches the nisab (minimum threshold for zakah). As for the land itself, it is not subject to zakah because it is not for trade; it is for residence or for him to build a structure on it for renting, so there is no zakah on it. Rather, the zakah is on the rent if it reaches the nisab and a lunar year has passed over it. Yes. May Allah bless you.