Is Zakat Required on Gifted Land?

No, Zakat is not required on land received as a gift. 

Whether you intend to keep or sell the land in the future, no Zakat is due on its value.

Here’s a breakdown to clarify this ruling:

• No Zakat on Gifted Land: Land received as a gift is not subject to Zakat, as it is not classified as a trade asset.
• Zakat on Sale Proceeds: If the land is sold and the money reaches the nisab of Zakat, then it becomes obligatory on that amount after one lunar year.
• Business vs. Personal Use:
• If the land is for personal use (e.g., a home, farm, or unused property), no Zakat applies.
• If the land is part of a business (e.g., real estate investment where properties are actively bought and sold for profit), then its value may be subject to Zakat.
• Checking Individual Obligations: It’s essential to evaluate financial circumstances and intentions regarding the land.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Required on an Undivided Estate?
• Is Zakat Due on Property Bought for Resale and Leased?
• Is Zakat Required on Rental Income from My Property?
• Is Zakat Required on Land Bought for Resale in 3-5 Years?
• Do I Have to Pay Zakat on My Home?
• Is Zakat Due on Money I Intend to Gift in the Future?