The Ruling on Zakah on Real Estate When It Is Sold

Question:
I bought a piece of land for one thousand and one hundred riyals, and it remained with me for eight years. I am now selling it for five thousand riyals. Do I pay zakah on the original amount for eight years, or on the current amount of five thousand riyals for one year, or for eight years?

Answer:
If you intended to sell the land, and your intention was to sell it, you pay zakah on it every year based on its value each year according to the assessment of knowledgeable people. Whether it is worth one thousand, two thousand, or three thousand, depending on what the experts in land similar to and comparable with yours say. Each year has its own calculation and its own value. In the final year, you pay zakah on five thousand. As for paying zakah on the total for all the years, no; each year has its own ruling and its own value, provided you intended to sell it.
However, if you bought it without the intention to sell, and you are hesitating whether to sell it, develop it, or do something else, and you have no firm decision, then no zakah is due on you. But if you are certain that you held it for the purpose of selling it, intending to sell it and trade in it, then zakah is due on you every year on the value of the land, whether it is cheap or expensive.