What is the ruling on Zakat for a real estate contribution that has been stalled for more than 3 years, with its capital not guaranteed to be recovered? And is Zakat obligatory for the entire period or for one year, knowing that the contribution period was 8 months?
Real estate contributions are subject to zakat as trade goods, because real estate companies purchase land with the intention of trading it. Therefore, at the end of the year, you must appraise your shares at their current value and pay one-quarter of one-tenth (2.5%) of their value as zakat. The hawl (zakat year) begins from the moment you possess the wealth that reaches the nisab (minimum threshold) with which you purchased the shares. If the land or shares become stagnant, some scholars are of the view that they are like a debt owed by a poor person, meaning zakat is not due on them until they are sold, and then zakat is paid for one year only. However, the more cautious approach is to pay zakat on them for all preceding years.
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