How is Zakat calculated on land purchased for investment and building upon, is it based on the original price, the current market price, or is it deferred until the actual start of the project?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If you purchased the land with the intention of building on it and selling the apartments, then it is treated as trade goods. It should be valued at market price at the end of every Hijri year, starting from the date of purchase. is obligatory on each partner, at a rate of 2.5% of their share, provided it reaches the . However, if you purchased the land to build on it for residential purposes or for rent, then there is no zakat on it. Overdue zakat remains a debt on one's conscience.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/95467
Where this answer came from
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- Ftawy
- Original fatwa ID
- 95467
- 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