Is Zakat Due on Undeveloped Land and How is it Calculated?

Zakat on undeveloped land depends on the intention behind acquiring it. 

Here's how it is determined:

• No Zakat for Inherited or Idle Land: 

If the land was inherited or purchased without any specific intention, or if it is simply being kept as a store of wealth, then Zakat is not due. This applies when there is no intention to sell or generate income from the land.

• Zakat for Investment Purposes: 

If the land was bought with the specific purpose of investment or capital appreciation, Zakat is due. In this case, the Zakat calculation is based on the current market value or the expected sale price of the land each year. Even if the land is not sold, Zakat needs to be paid annually.

• Payment of Zakat on Unsold Land: 

If the land has not yet been sold, one can delay payment of Zakat until it is sold. However, the Zakat will then be due for each year that has passed, based on the market value of the land at the time of sale.

Thus, Zakat is only due on undeveloped land if it was purchased as an investment. It should be calculated annually based on its value, and the payment can be postponed until the land is sold. If the land is held as a store of wealth or without any plans to sell or profit from it, then Zakat is not due.

And Allah knows best!