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:

Dear Burhan,

Please kindly advice us according to ISLAM zakat is applicable to the open property land. not intend for selling the open plot.

(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:

Zakah on land

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 none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

If the plot of land was bought for agricultural use, there is absolutely no ‘zakah’ levied in Shariah on the value of an agricultural land. The annual ‘zakah’ of agricultural land is determined from the produce of the land; 10% of the produce as ‘zakah’ if the land is naturally irrigated by rain or an adjacent natural water supply, and 5% of the produce if artificial irrigation is used.

But if the plot of land is bought for any other purpose other than agriculture, be it as an investment, or to build a house, or a factory, or any other purpose whatsoever….it will be considered as one’s excess asset and one would be liable to pay 2.50% annually of the current market value of the land as ‘zakah’.

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

Your brother and well wisher in Islam,

Burhan