Zakah on Rented Real Estate
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The fifth question of the fatwa number ( 327 )
Q5: I have a brother who owns a great deal of wealth, and he has placed his wealth in buildings, commercial shops, and land, all of which yield returns. I advised him to pay the zakah on all that he owns, both the principal of his wealth and its produce, but he told me that he is only obligated to pay zakah on the rent if a lunar year has passed over it, and not on the principal of his wealth. He said that even if he places the rent into a building every time he receives it, no zakah is due on it or on its principal unless a lunar year passes over the rent before he places it in a building. My brother has peers who do the same thing. Does Islam permit such an action, and is the doer not sinful?
And what is the real estate for which no zakah is due on its principal or its produce until a lunar year has passed over it? And is there a limit at which one stops, or is the little and the much equal in this regard?
A5: The wealth that a person owns is of various types. If it is in currency, zakah is obligatory in it if it reaches the nisab and a lunar year has passed over it. If it is agricultural land, zakah is obligatory in the crops and fruits on the day of harvest, not in the land itself. If it is land that is rented out or a building that is rented out, zakah is obligatory in its rent if a lunar year has passed over it, not in the land or building itself. If it is land, buildings, or other goods for trade, zakah is obligatory in it if a lunar year has passed over it, and the lunar year for the profit in it is the same as the lunar year for the principal, if the principal is a nisab. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q5: I have a brother who owns a great deal of wealth, and he has placed his wealth in buildings, commercial shops, and land, all of which yield returns. I advised him to pay the zakah on all that he owns, both the principal of his wealth and its produce, but he told me that he is only obligated to pay zakah on the rent if a lunar year has passed over it, and not on the principal of his wealth. He said that even if he places the rent into a building every time he receives it, no zakah is due on it or on its principal unless a lunar year passes over the rent before he places it in a building. My brother has peers who do the same thing. Does Islam permit such an action, and is the doer not sinful?
And what is the real estate for which no zakah is due on its principal or its produce until a lunar year has passed over it? And is there a limit at which one stops, or is the little and the much equal in this regard?
A5: The wealth that a person owns is of various types. If it is in currency, zakah is obligatory in it if it reaches the nisab and a lunar year has passed over it. If it is agricultural land, zakah is obligatory in the crops and fruits on the day of harvest, not in the land itself. If it is land that is rented out or a building that is rented out, zakah is obligatory in its rent if a lunar year has passed over it, not in the land or building itself. If it is land, buildings, or other goods for trade, zakah is obligatory in it if a lunar year has passed over it, and the lunar year for the profit in it is the same as the lunar year for the principal, if the principal is a nisab. 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.