Praise be to Allaah.
Land that is bought with the intention of selling it after a
while when prices have increased is subject to zakaah, because it comes
under the heading of trade goods.
The value of trade goods should be worked out at the end of
the year based on the current market price, regardless of the price for
which they were bought, and zakaah must be paid. The rate of zakaah is one
quarter of one tenth.
See the answer to question no.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was
asked: I have a piece of land and I am waiting for the prices of land to go
up so that I can sell it, and it has been several years. Should I pay zakaah
He replied: If a person buys land to make a profit then the
land does not sell and becomes cheaper, and he keeps it until the price goes
up, then he must pay zakaah on it every year, because it comes under the
heading of trade goods. If he does not have anything with which to pay the
zakaah, and he cannot find a buyer, then he should work out its price at the
time when zakaah becomes obligatory and work out its zakaah, and in the
following year he should work out the zakaah on its value, then in the third
year and so on. Then whenever he sells it he should pay the total amount of
zakaah that he had calculated. End quote.
Majmoo’ al-Fataawa (18/225).
He was also asked about a person who bought some land with
the aim of trading in it, but it remained in his possession for a number of
years. Does he have to pay zakaah on it?
He replied: If a person buys land for trading, then he has to
pay zakaah every year, whether the value increases or decreases, and whether
it sells quickly or it does not sell. He should work out its value every
year at the current market price, then if he has money he should pay its
zakaah from the money that he has, and if he does not have any money he
should work out the zakaah for each year, and when he sells it he should pay
the zakaah for the past years. End quote from Liqa’ al-Baab al-Shahri
And Allaah knows best.