Question :
I bought a plot of land to build a house on in the future or exchange with another plot to build the house on. Is this land liable for Zakah? If it is and I haven`t got enough money to build the house, should I sell it to pay the Zakah? It is worth pointing that I live in a flat that of my own, thanks to Allah.
The Answer :
All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
If you didn`t buy this plot of land for trade-as understood from your question-then no Zakah is liable on it. This is because the intention of selling that land is what makes it liable for Zakah and, in your case, this condition is missing.
Al-Shirbini says: "If the commodity is bought to be sold then it is considered an item of trade." (Moghni al-Mohtaj, vol.1/pp.588).
In conclusion, no Zakah is due on this land because it wasn`t bought with the intention of selling all of it or a portion of it. And Allah The Almighty Knows Best.