When is Zakat due on real estate and land?

Zakat on real estate is not originally obligatory unless it is for trade. There is no zakat on real estate intended for residential use, personal use, or agricultural land. Zakat is obligatory on the rent of exploited real estate if a year has passed on it, not on its value. Zakat is obligatory on real estate held with the intention of trade. However, a mere intention to sell does not make it a trade good. If the owner does not have a specific intention for the real estate, there is no zakat on it.

If the owner's intention changes from acquisition to trade, zakat becomes obligatory on it. However, if it changes from trade to acquisition, there is no zakat on it. If both acquisition and trade are intended, the original purpose of ownership is what matters. Real estate under construction for trade is subject to zakat, as is real estate whose owner is waiting for prices to rise.

Real estate designated for preserving wealth is not subject to zakat unless the intention is to evade zakat. Zakat is obligatory on commercial real estate that has not yet been taken possession of. Mortgaged real estate is subject to zakat if it is prepared for trade. Partners in real estate pay zakat on each of their shares if it reaches the nisab.

Waqf (endowed) real estate is not subject to zakat. There is no difference in zakat between thriving and stagnant real estate. Real estate contributions are subject to zakat on trade goods. However, seized real estate and stalled contributions are not subject to zakat. Real estate is valued at the end of the year according to its market value at the time the year ends. The calculation of the year does not begin from the time the real estate was purchased, but rather from the year of the money with which it was purchased.