Is it necessary to pay zakah for a field, plot of land and house?

The Answer

Dear Brother / Sister,

Zakah is not paid for real estate like houses, fields and plots of land. Zakah is paid from their income, if any.

However, if a person buys and sells houses, fields or plots of land as a business, zakah is necessary for them.

Accordingly, zakah for real estate like houses and plots of land that are bought for business, investment, maintaining the value of money, etc., that cannot be sold at once and whose price can change in the course of time should be paid based on “the average of the cost price and market price”.

Zakah for plots of land and flats:

Plots of land are bought for two purposes: to construct a house or a building that will yield income or to keep it as a plot of land in order to obtain benefit. The plots of land bought for the former purpose are bought with the purpose of having a residence, not for business; therefore, zakah is not paid for their value. Zakah is paid from their income.   

The plots that are bought with the purpose of business are regarded as commercial goods when they are sold by dividing them or as a whole. Zakah is paid from their value. 

Zakah is not paid for the value of the buildings that are constructed and rented or inhabited; zakah is paid from their income. 

The buildings and flats that are constructed with purpose of selling are regarded as commercial goods and zakah is paid from their value.

Zakah is not paid for real estate like houses, fields and plots of land. Zakah is paid from their income, if any.

However, However, if a person buys and sells houses, fields or plots of land as a business, zakah is necessary for them.

Accordingly, zakah for real estate like houses and plots of land that are bought for business, investment, maintaining the value of money, etc., that cannot be sold at once and whose price can change in the course of time should be paid based on “the average of the cost price and market price”.

Questions on Islam

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