one quarter of one-tenth (2.5 percent), by analogy with the rate for gold and silver.
May Allah’s blessings and peace be upon our master Muhammad, his family, and his Companions in abundant measure. All praise belongs to Allah, Lord of the worlds.
Seventh: Resolution of the Islamic Fiqh Council on zakah for non-agricultural rented buildings and land
(Resolution No. 2)
In the name of Allah, the Most Merciful, the Compassionate.
To proceed:
The Islamic Fiqh Council, affiliated with the Organization of the Islamic Conference, at its second conference session held from 10–16 Rabiʿ al-Thani 1406 AH / 22–28 December 1985 CE,
having listened to the studies prepared on “Zakah on non-agricultural rented buildings and land,”
and after thorough and comprehensive discussion, has concluded the following:
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No explicit scriptural text has been transmitted that makes zakah obligatory on the buildings and rented land themselves.
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Likewise, no explicit text has been transmitted that makes zakah immediately obligatory on the income derived from non-agricultural rented property.
Accordingly, the Council resolves:
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Zakah is not due on the capital value of rented buildings and land.
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Zakah is due on the rental income at the rate of one quarter of one-tenth (2.5 percent) once a full lunar year has passed from the day the income is received, provided that the general conditions for zakah are met and no impediments exist.
And Allah knows best.