Is zakat obligatory on land prepared for investment, which has been held for a full year, while the loan for the land's price and another loan for its leveling have not been repaid? And in this situation, should repaying the loan or giving out zakat be prioritized?

Scholars have differed on the issue of whether debt prevents the obligation of zakat. The majority of scholars hold that debt prevents the obligation of zakat. The amount of the debt is deducted from the wealth, and if the remainder reaches the nisab, zakat is paid on it; otherwise, it is not. Their argument is that zakat was legislated for solidarity (muwasat), and a debtor is not eligible for muwasat. They cited the hadith: "Charity is only from surplus wealth," and that a debtor (gharim) has a share in zakat.

On the other hand, others have held that debt does not prevent the obligation of zakat, arguing that the Prophet, peace and blessings be upon him, did not inquire about people's debts when collecting zakat from them.

For the sake of clearing one's conscience, it is preferable to pay zakat even if there is a debt. Land designated for trade should be valued, and one-quarter of one-tenth (2.5%) of its value should be given, provided that the intention for trade was present when the land was purchased. However, if the intention was for residence or rental, there is no zakat on it.