I have query on zakat for land plots. I live in overseas. I don’t own any home either in home country or nor in overseas.
I have total 9 plots in my home country as per below. Currently, I do not have any intention to sell these plots, unless until in future if I need cash/funds for my kids (a son and a daughter) higher education, marriage, home construction or any emergency.
Kindly advise either if Zakat is payable on which of these plots (and zakat payable %).
Plot # 1 & 2: These are two residential plots. We have plan whenever we go back to home country, we will construct our home on these two plots.
Plot #3: I have intention to build home on this and gift to my daughter on her marriage.
Plot #4 & 5: if I have finance available in future, I will construct homes and will put these property for rental income (my retirement income plan). Or if my sister wants to live in one of them, she can take one.
Plot #6 & 7: there are two options in my mind
(a) To buy land (and construct home) near my parents in law home (this area is expensive). So I may sell these two plots (6&7) in order to purchase new land near my parents in law place. If I go for this option, I will not construct home on above said plot 1&2. However, possibility of this option (a) is low, as it requires lot more financing.
(b) if I have finance available in future, I will construct homes and will put these property for rental income (my retirement income plan).
Plot #8 &9: A residential and a commercial plot. It is currently new city development in progress and it is expected to be future business hub in next 1 or 2 decades. So in case, if I or my son in future need to move/live in this new city (for job / business purposes), so we can use these plots for ourselves living / business.
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
In light of the information which you mentioned, there will be no Zakah on any of your properties. Zakah will only be compulsory if you put any property for sale, or if you rent them out.
And Allaah Ta’aala knows best
Ismail Moosa (Mufti)
This answer was collected from Fatwaa.com which is an excellent Q&A site managed by Mufti Ismail Moosa from South Africa. .