The Ruling on Zakah in Land Not Intended for Sale

Question:
The brother / A. A. H. from al-Madinah al-Munawwarah says in his question: I have a house in which I live, and I have land. Sometimes I think of selling it, and sometimes I think of building a residence for myself on it. Is there zakah in it? I hope, O honorable Shaykh, that you will give me a detailed explanation regarding the zakah of land in general — may Allah reward you with good.

Answer:
There is no zakah in land, nor in any other goods, unless its owner intends to prepare it for sale. In that case, he pays zakah on its value if a lunar year has passed over it and it reaches the nisab. However, if the owner is undecided whether to sell it or not, there is no zakah in it until he firmly intends to sell it and a lunar year passes over it thereafter, provided it is at the nisab or more. This is based on what Abu Dawud and others narrated from Samurah ibn Jundub (may Allah be pleased with him) who said: , and there is a corroborating narration from the hadith of Abu Dharr (may Allah be pleased with him) . This is the opinion of the majority of scholars, and some of them reported it as a consensus.
As for real estate, whether a house, a shop, or land, that is prepared for rental, zakah is not obligatory on its principal value, but it is obligatory on the rent if it reaches the nisab and a lunar year passes over it. This is due to the generality of the evidence indicating the obligation of zakah on the two types of currency, or on paper money that serves as their substitute, when a lunar year passes over them. And success is from Allah.