Is Zakat obligatory on a sum of 450,000 EGP saved in the bank for emergency needs, given the existence of monthly installments due for a chalet purchased for investment?

Scholars hold different opinions regarding the deduction of debt from the wealth subject to zakat (definition). The view we find most preponderant is that of Malik, and a narration from Ahmad, which states that whoever possesses property acquired for personal use (ʿurūḍ qunyah) that is not needed, should count its value against their debt. Then, if the property covers the debt, they should pay zakat on all their wealth. If it does not, they should deduct the remaining debt and pay zakat on the rest. As for someone who does not possess such property, they should deduct their debt from the wealth subject to zakat.

The more cautious approach, and that which is more absolving of responsibility, is the new position of Al-Shafi'i, and the preferred view of Ibn Baz and Ibn Uthaymeen, which is that debt is not to be deducted from the wealth subject to zakat at all.

Based on both opinions, a flat used as a summer residence is considered property that can be dispensed with. Its value should therefore be set against the debt. If any debt remains that is not covered by other property, its amount should be deducted from the existing cash, and zakat should be paid on the remainder if it reaches the nisab (definition) (minimum taxable amount).