Is Zakat obligatory on a sum of 1000 Dinars paid as a down payment for an apartment, when a full year has passed, and the construction of the apartment has not yet begun?
Zakat is obligatory on the money you gave to your partner to purchase land and own an apartment if a year has passed and it has reached the nisab. If the money has been invested in land or a building, the Zakat obligation varies depending on the intention:
1. For trade: Zakat is paid on the value of the land or apartment at the time the year passes. 2. For dwelling: There is no Zakat on it. 3. For rent: Zakat is paid on the rent if it reaches the nisab and a year has passed over it. The year begins from the date of the rental agreement.
If you paid money to purchase an apartment under construction, this is a contract of istisna' (manufacturing agreement), and the apartment must be precisely described. If the contract is concluded, the money exits your ownership, and Zakat is not obligatory on you; instead, it is included in the manufacturer's assets for Zakat. However, if the land is unknown, the contract is void, and the money remains yours, making Zakat obligatory on you.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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