He bought land with the intention of building on it, and it remained in that state for ten years. Is there zakah on it?

Question:
Our brother says in his letter: I bought a plot of land with buildings for a sum of money, but no buildings were erected on it for ten years, and it was not utilized during this period. Is there zakah on this wealth? What is the amount? Is it based only on the purchase price, or what? May Allah reward you with good.

Answer:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions. As for this land mentioned by the questioner, according to his intention: if he intends to erect buildings on it for rental and investment, there is no zakah on it for the entire duration, because it has not been sold. However, if he erects buildings on it and receives rent from them, he must pay zakah on this rent if a lunar year passes while it is in his possession. The lunar year for rent begins from the contract, i.e., from the rental contract. So if a lunar year passes from the beginning of the contract, zakah becomes obligatory on it if it reaches the nisab.
So, if he intended to buy this land for the purpose of selling it to make a profit, it becomes trade goods. Zakah is obligatory on it based on its value at the end of every year. It is assessed at what it is worth at the end of the year, then zakah is paid by giving one-fourth of a tenth of the value it equals in that year. One does not look at what he bought it for, but rather at what it is worth when the lunar year is completed, and then he gives one-fourth of a tenth of what it is worth. This is if he intended it for trade, buying, and selling, whether he intended to sell it as land, or intended to build on it and sell the buildings. In that case, he assesses it at what it is worth every year and pays its zakah, because it has become trade goods. Yes.