Zakaat on property investments

Question and Answer

Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate it 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?

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