How is zakat calculated for a real estate portfolio supervised by an Islamic bank, which generates semi-annual profits from rentals, and then the capital is returned with profit or loss after selling the properties at the end of a five-year period?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It appears that the wallet (portfolio) and the profits generated from it should be appraised and Zakat paid on them every year. This is the opinion of the majority of scholars and is the most preponderant view. The Malikis hold that the revenue is subject to Zakat if it reaches the nisab, and if the property is sold, Zakat is paid for one year only, because, according to them, hoarded wealth is subject to Zakat for one year after its sale. The majority of scholars based their view on the hadith of Samurah: "The Messenger of Allah (peace be upon him) commanded us to give charity from what we prepare for sale."
Summarized from the full answer at Ftawy · imported
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