Zakaat on Property Investments
Question
Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate in on a property. I have invested 200 000 in a property as a shareholder. From this I collect a rental every month. How do I calculate Zakaat on this property?
Answer
There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of property as an investment and not for resale, there is no Zakaat due on your share of the property itself. However, the dividends that you receive will be subject to Zakaat if you have saved up these funds.
Whatever you have saved up from these dividends will be subject to Zakaat like the rest of your wealth (2.5%) on your due date for Zakaat.
If you have used up all the funds from these dividends before the due date of Zakaat, there is no Zakaat on these funds.
And Allah Knows Best
- Answered by
- Mufti Suhail Tarmahomed
Fatawa SA is an independent, read-only index of fatawa already published by Jamiatul Ulama KZN. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.