The ruling on the zakah of land that exceeds one’s need

Question:
May Allah reward you and bless you. The questioner, Sulayman, says: Honorable Shaykh, Shaykh al-Fawzan (may Allah keep you safe), peace be upon you and Allah’s mercy and blessings. I have a question, which is that I own a plot of land measuring nine hundred square meters, which I purchased on installment four years ago for sixty-five thousand riyals. I paid off the full amount after four years. From that date until now, I have not paid any zakah on it. I know that this land is in excess of my need, praise be to Allah. It is currently worth approximately two hundred thousand riyals. Let it be in my intention to trade with it, but my actual intention was to benefit from it by making it a rest area, for example, or selling it in case of need for a sum of money. The question is, Shaykh Salih, is there zakah on me for the years that have passed and for the remaining period? I ask you to issue a ruling on this so that I may clear my conscience.

Answer:
Land, like other goods, if you intend to trade with it or sell it, then it is among trade goods. If a lunar year passes on its value at which you purchased it, then you appraise it at what it is worth at the end of its lunar year and you pay zakah on the value, meaning you give out one-quarter of a tenth of its value at that time. Because it is among trade goods. As for if you did not resolve to sell it, but rather you want it for investment or for use as a rest area or the like, or you say, “If I need it, I will sell it, and if I do not need it, I will leave it,” then you are hesitating in that case, so there is no zakah on it in this situation. Yes.