Tuesday, May 21, 2024
No menu items!

Zakaah on property

Fatwaa ID: 794

Assalmualikum, do I have to give zakah for the properties in my portfolio? I’ve receive monthly rent on these properties, so do they add to my business assets for zakah?
Also, if I am refurbishing a house which I intend to put out for rent or sell, then is there any zakah on it’s current market value or it’s estimated value (rental or sell) once the refurbishment is complete?

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

  1. Rental properties themselves are not subject to zakaah. Any rent earned from them will be treated like any other income. Thus, any received rent remaining in one’s ownership on one’s zakaah date will be subject to zakaah.
  2. If a property is purchased with the intention of resale, then it will be subject to zakaah. The current selling price will be considered.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.