Title: Zakah on plots purchased for saving

Question: I am a doctor and working overseas since 8 years. Whatever money I have time to time, I send back to my home country for buying some property. This way I have collected about 10 plots, some of them in my possession while some in the process of possession. My intention is saving money for future use, which includes building a house and a clinic, and keeping some plots as saving till time I or my family needs for future expenses. I also intend to carry on with purchasing plots further till I work abroad so that I can save money in future. What is the zakah ruling for me and if I have to pay, then how much. I also want to ask that if I do not get deserving people near me then can I donate to hospital, masjid or any other welfare organization.

Answer ID: 148170Posted on: Aug 30, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 543/577/M=5/1438)

(1, 2) If you have bought all the said plots or got them bought with the intention that you shall build house or clinic at another place from the money which you shall get by selling and shall fulfill your needs and your family’s needs with the money, then in such a case zakah shall be wajib on the value of all the plots. On the completion of the year you will have to pay fortieth part of the total value as zakah on all the plots as per their current price. And in case you did not buy the plot with the intention of sale rather you bought it just to build the residential house, clinic and rental house and shop then in such a case no zakah shall be wajib on the value of the plots.

(3) It is not correct to use zakah money in the construction of hospital or mosque or any welfare institution or in any such work where no Shariah tamlik (giving in the possession of a poor) is found. Yes, if the patient in the hospital are eligible to receive zakah then you may give them zakah by giving it in their possession. If there is none eligible for zakah then you should investigate nearby and thus you may also pay your zakah in some religious madrasa if there are students who are eligible to receive zakah.