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Zakaat on Property Investments

Notice: The Jamiatul Ulama KZN cautions the Muslim Community to be wary of many unscrupulous individuals / organisations that take advantage of the Muslim Community’s generosity especially at this time of the year. Kindly ensure that the organization you are contributing towards or entrusting your funds for distribution is bonafide and authentic.
Question and Answer
Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate in on a property. I have invested 200 000 in a property as a shareholder. From this I collect a rental every month. How do I calculate Zakaat on this property?
(Query published as received)
A.  There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of property as an investment and not for resale, there is no Zakaat due on your share of the property itself. However, the  dividends that you receive will be subject to Zakaat if you have saved up these funds.
Whatever you have saved up from these dividends will be subject to Zakaat like the rest of your wealth (2.5%) on your due date for Zakaat.
If you have used up all the  funds from these dividends before the due date of Zakaat, there is no Zakaat on these funds. 
And Allah Knows Best

Mufti Suhail Tarmahomed

Fatwa Department
Jamiatul Ulama (KZN) 

Council of Muslim Theologians
223 Alpine Road, Overport, Durban
Tel : +27 (0) 31 2077099
Fax : +27(0) 31 2074163
Website : 

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