Zakah on land.
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Please kindly advice us according to ISLAM zakat is applicable to the open property land. not intend for selling the open plot.
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Zakah on land
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If the plot of land was bought for agricultural use, there is absolutely no zakah levied in Shariah on the value of an agricultural land. The annual zakah of agricultural land is determined from the produce of the land; 10% of the produce as zakah if the land is naturally irrigated by rain or an adjacent natural water supply, and 5% of the produce if artificial irrigation is used.
But if the plot of land is bought for any other purpose other than agriculture, be it as an investment, or to build a house, or a factory, or any other purpose whatsoever.it will be considered as ones excess asset and one would be liable to pay 2.50% annually of the current market value of the land as zakah.
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Your brother and well wisher in Islam,