The Ruling on Zakah for a House Intended for Residence

A message was received by the program from Riyadh, and the sender, whose name is Abdullah, wrote at the end: I inform your Eminence that I own a villa in one of the districts of the new Riyadh city, and electricity has not reached it. I am currently renting a place to live, and I do not own anything other than this villa. The question is: Is zakah obligatory on it or not? I have been living in it for three years and I want to sell it. If zakah is due on it, is it calculated based on the cost of its construction or based on its current market value if I were to sell it?
Answer: If you intended it for residence, there is no zakah on it, because residences are not subject to zakah. Likewise, houses prepared for rent or shops are not subject to zakah. However, the rent is subject to zakah if it reaches the nisab and a lunar year has passed over it; that is, the rent is subject to zakah. As for the property itself, whether it is a house or a shop, if it is for residence or for rent, there is no zakah on it; there is no zakah on it. But if it is for rent, then the rent is subject to zakah if it reaches the nisab and a lunar year has passed over it.
As for if you spent it on your needs before a lunar year had passed over it, there is no zakah in it.
But if you intended to sell the villa or anything else after you had intended it for residence, and you then intended to sell it, it enters the ruling of zakah from the time you intended to sell it. From the time the intention to sell arises, it enters the ruling of zakah. So if a lunar year passes after the intention to sell, you pay zakah on its value at the time the year is completed. If you intended it for sale in Ramadan and the next Ramadan comes, you owe zakah on its value when the year is completed. If you then renounce the intention to sell before the year is completed, there is no zakah on it.
And so for all the years, as long as you intend to sell, you pay zakah when the year is completed. And whenever you abandon that and renounce the intention to sell, the zakah is dropped from you for the future; because you have annulled the intention to sell. And the hadith came: So if the believer did not prepare it for sale, but for residence or for renting, it becomes outside the ruling of zakah. Rather, it is under the ruling of residences prepared for residence, and under the ruling of tools that a person uses for his needs and does not want to sell. There is no zakah on them, such as carpets, bedding, household utensils, and the animals he uses for his needs, and the car he uses for his need, not for sale. All of these have no zakah on them. Yes.
The presenter: May Allah reward you with good.