How is the zakat calculated for land on which construction has begun for investment, knowing that the construction period may take four years?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Real estate investment depends on the investor's intention. If the intention is to rent, then zakat is due on the rent if it reaches the and a full year has passed over it, not on the property itself. However, if the intention is to sell after construction, then zakat is due on the value of the land and buildings each year at a rate of 2.5%, even if the buildings are not yet complete, because they are considered trade goods.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/13535
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- Ftawy
- Original fatwa ID
- 13535
- 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