Zakat on Installment Properties

(1)  If buying land for children means that the land was purchased with the intention that it would be sold when needed to cover expenses such as their marriage or higher education, then since you are the owner of that land, you may sell it whenever necessary. The ruling of its price will then be the same as ordinary money. In other words, if you possess wealth equal to the nisab, Zakat will be obligatory on whatever amount remains after one lunar year has passed.

(2)  If “for business” means that you purchased the land with the intention of selling it, then according to Islamic law it is considered trade merchandise (business asset), and therefore Zakat will be obligatory on its value every year according to the prescribed rules.

However, if you intend to establish a shop, factory, or any other business on that land, then no Zakat will be due on the value of the land itself.

(3). It should be noted that Zakat on a plot of land is only obligatory when the plot is purchased with the intention of trade (i.e., to sell it). However, if a plot is bought for personal use, such as with the intention of building a house, then Zakat is not obligatory on that plot according to Islamic law.