Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Does one have to pay zakat on a plot of land with nothing built upon it; bought with the intent to, one day, either sell it or build a house upon it? If so, how does one calculate the amount of zakat due on it? 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Plot of land Zakah

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

The plot of land, regardless of whether something is built upon it or not, would be considered part of one’s wealth or net worth, and if the land has been in your possession for a period of one full year, then one must pay the 2.5% zakah on the market value of the land.

But if and when one himself lives in the house built on that plot of land, then there will be no zakah on either the house or the land; for whatever is in usage for oneself to live his life, zakah is not liable for that part of his wealth. Zakah is only liable on one’s excess wealth or net worth which has been in his possession for a period of one full year.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan