Do I pay Zakāt on an investment property?
If you bought the property to resell it, it is treated like goods for trade and its full value is zakatable. If you are renting it out or holding it for the long term, the building itself is not zakatable. Only the rental income you have saved by your Zakāt day counts, and you would include that with your cash.
Where the schools differ
Is the property itself zakatable?
| Position held by | Ruling |
|---|---|
| Agreed, four schools | Property held to live in or rent out is not itself zakatable; only the saved rental income is. |
| Agreed, four schools | Property bought to resell is trade stock: Zakat on the full market value. |
The calculator marks which position produced your figure and lets you change it. See our method.
Positions differ. Confirm with your scholar.
Open the calculator at Property & Business →
Where this comes from
Zakat Made Easy, Mufti Faraz Adam: the position this app follows, used with the author's permission.