Zakah on Land

Question : If a person has land that was granted to him, or that he owns by inheritance, or that he owns by purchase, the default ruling is that there is no zakah on it.

Answer : This is because the default ruling for trade goods is that there is no zakah on them unless they are prepared for trade. Based on this, we say in response to the question that there is no zakah on this land, because zakah is not obligatory on trade goods unless a person prepares them for trade, meaning he intends to wait for profit so that he may earn from them. However, if he is undecided whether to sell it or develop it, or if he has kept it saying, "If I need it, I will sell it and benefit from it, and if I do not need it, I prefer to own real estate," then in these two cases, he owes no zakah. Zakah is only due on the one who prepares this land for trade and earning, and the same is said regarding all trade goods.