Zakat Question: Introcrowd Land Investment

Investment Questions and Chats General Investment
#1

Salaam Alaikum ,

I am considering a lump sum investment with Introcrowd, in the purchase of land for development Insha’Allah. I would like to know what the implications would be regarding my annual zakat payments ? If the investment is for 5 / 6 years would I need to pay 2.5% annually on the entire amount or only on any returns made during the life cycle of the investment ?

Jazakallahu khairun in advance

Syrah Hassan

#2

Salaam Alaikum

I am considering a lump sum investment with Introcrowd, in the purchase of land for development Insha’Allah. I would like to know what the implications would be regarding my annual zakat payments ? If the investment is for 5 / 6 years would I need to pay 2.5% annually on the entire amount or only on any returns made during the life cycle of the investment ?

Jazakallahu khairun in advance

#3

Wa Alaykum Salaam,

I am currently writing a research on this as it impacts a number of investments where the maturity is medium to long-term.

Kindly ask again towards the end of year. I will have hopefully developed further guidance on this type of question.

Regards

#4

Jazakallahu khairun, I appreciate your response and will enquire again at the end of the year , InshaAllah

#5

Salaams,

Has there been any update on this?

Jzk

#6

Assalaamu alaykum,

I am finalising the research and it will be released shortly.

#7

Salaam @Mufti_Faraz_Adam ,

Can you please advise if the research has been released as I need to calculate the zakat for Intro Crowd something showing as “The investment should be considered as long-term (approximately 3-10 years)”

JazaakAllah Khair.

#8

Salaaamalaykom wa rahmatallahi wa barakaatuh.

@Mufti_Faraz_Adam or @Mufti_Billal, ramadan mubaarak and hope you’re both well.

Has there or is there a response elsewhere to this topic?

Calculating zakaat at the moment and would be great to know :slight_smile:

Jazaaakum Allahu khayra

#9

Think I found the article

I’ve understood that the likes of IntroCrowd (now ESE) fall into points 4 or 5. The underlying asset is land that will be sold once planning permission has been approved. I think it’s more likely point 5 as we’re given a share certificate into the SVP that runs the planning permission operations.

So it’s going to be 2.5% of investment amount?