Is Zakat obligatory on the first installment paid for the purchase of a house under construction, whether for residential or rental purposes?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The money paid to the company to build a house with specific specifications is called 'Istisna' (manufacturing contract), and it is permissible. There is no on this money for you because it has left your possession, and there is no zakat on the house itself because you did not intend it for trade. As for the company, it must pay zakat on the capital of the Istisna contract if a full year has passed since its acquisition, by analogy with the capital of a Salam (forward) contract. A Muslim must strive to deal with companies that avoid unlawful transactions in their dealings.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/77782
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 77782
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy