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Zakat On Commercial Property
I have purchased a commercial property with intention of making office building and sell them once building will be completed.
My question is how Zakat will be calculated ?
Is it when I will make a profit by selling the offices?
Is it calculated even if I m unable to sell any office at all?
Regards
Mansoor Hafeez
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1 Reply
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Zakat On Commercial Property
updated 9 months, 1 week ago
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Unless in personal use, the property is considered your asset for as long as you own it and you should pay 2.5 zakat on the market value of it, calculated on the day that you dispense your zakat. If you sell the property before your next year’s zakat is due then it won’t be included in your assets. Instead the proceeds that you received from selling it will be added to your total assets which the zakat will be assessed on.
If you build offices, as you sell each office, 5% or 10% of the gross proceeds will also go towards zakat depending on whether or not you have material involvement in your business.
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