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One of the best things about Ramadan is that you get to feel for the poor as well as help them, Muslims all over the world get busy doing good deeds, whether it comes to being nice or donating money, Zakat is financial worship and one of the five pillars of Islam. All Muslims who are sane, free, have reached the age of puberty and have money or goods which are yielding them more than their debts or are equal to Nisab are required to pay Zakat.
What is the Zakat system in Saudi Arabia ?
Nisab is a measurement in gold or in silver, 3 ounces of gold or in cash depending on gold prices for that day, then we have the silver, which is 21 ounces of silver or what is worth it in cash, or any of the following:
- 40 sheep.
- 30 cattle.
- 5 camels.
- 612 Kgs of produce like fruits and vegetables.
Those are the minimum for each product type, if you have this number or more, or their equivalent in Cash of any currency inside Saudi Arabia, you will have to pay Zakat.
So for example, if you have 200 Saudi Riyals, you won’t be obligated to pay, but if you have 300000 Saudi Riyals then that’s a different story.
What is the percentage?
Zakat percentage holds to the amount of 2.5% of the wealth that a person has got for a full lunar year, the only case that no Zakat is payable is if it was less than what we call Nisab, if it is more than Nisab it has to be paid.
Zakat on investment property or real estate
The Zakat is to be given to all those Muslims who are poor, needy, or in debt. It cannot be given to one’s own parents, siblings, grandchildren or non-Muslims. However, you can give charity as Sadaqah to help them.
Below we have created a guide to how and when to pay for your real estate investments, whether it was zakat on investment property or even on rental property , so following things below:
- All real estate investments not included for personal use are to be included in Nisab when calculating Zakat.
- If your real estate property is for rent, then you must pay 2.5% of the gross annual rent as Zakat.
- All properties in which real estate agents invest are subject of Zakat, except the office they work in and the house they live in. It is obligatory for them to pay Zakat after one year, after deducting debts as 1/40.
- Regardless of the property value depreciating or appreciating over time, then it has to be paid on the value it is worth at the end of the year.
- Agricultural land is absolutely exempt from Zakat, even if it is worth millions of dollars or Saudi riyals. However, Zakat is determined from its produce. If the land is irrigated naturally through rain, the Zakat would be 10% of the product and if it is irrigated artificially through tube wells it would be 5% of the produce of that land.
Zakat calculator online
You can follow this link to be able to calculate it through a Zakat calculator online , and during this holy month, please try to give others as much as you can, it might be a small thing for you, but a lifesaver to others.
Information you need to use this calculator:
- Your liabilities of borrowed money, wages, taxes, employees if you have a company, etc.
- Your cash whether given to others in loans or in bank accounts.
- Gold and silver that you own, inserted in their weight together.
This was all that we have about paying your Zakat properly, if you need more to read about Ramadan, then why not read our article about Ramadan DIY gifts as well as our article about home gym in Ramadan, and Ramadan 2021 preparations, but are you feeling a little bit lost when it comes to your kitchen?
Read our article about how to prepare your kitchen for Ramadan 2021, and more on our Bayut KSA blog that specializes in everything Real estate or Saudi Arabia.
If you need any help, do not hesitate to contact us in the comments section below.
