I purchased a property but I am still not sure if I am going to keep it or sell it. Do I pay Zakaat on it?

Q. I purchased a property but I am still not sure if I am going to keep it or sell it. I have been paying Zakaat on the property for a few years. I have a doubt if I should be paying Zakaat on it in the first place. Do I have to pay Zakaat on the property?

A. In principle, Zakaat is only compulsory on property which was purchased with the specific intention of reselling. In your case, you did not have a specific intention to resell the property upon purchasing it. Hence, you are not obliged to pay Zakaat on the property.

Only when you have made up your mind to sell the property and the property is actually sold, you would be obliged to pay Zakaat on the proceeds received from the sale of the property according to your personal financial situation.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

themufti.com