Egypt’s Dar al-Ifta clarified the rules for zakat on real estate, explaining that the obligation varies according to the owner’s intention and purpose of ownership. Fatwa Secretary Hind Hammam stated that zakat is a pillar of Islam symbolizing purity, solidarity, and obedience to God’s commands.
She emphasized that real estate purchased for trade or resale is treated as a commercial asset, and zakat of 2.5% must be paid based on its market value at the time of sale, provided three main conditions are met:
The property has been owned for one full lunar year.
Its value reaches the nisab (equivalent to 85 grams of 21-karat gold).
The owner intends to trade or profit from its sale.
Hammam added that zakat is due once at the time of sale, regardless of any price changes. Properties for personal residence or rental are not subject to zakat on the asset itself; instead, zakat applies only to saved rental income that meets the nisab and time conditions.
Sheikh Ahmed Wissam further explained that owned apartments or homes purchased for personal use are exempt from zakat, while those bought for resale are subject to 2.5% zakat upon sale.
Sheikh Awida Othman clarified that rented properties and vacant lands follow similar principles: if intended for trade, zakat is due upon sale; if kept for living or saving, no zakat applies. He affirmed that giving zakat purifies wealth and brings blessing and growth.
