How can I calculate zakat on a plot of land reserved for investment?

Zakat is one of the pillars of Islam. It is due on the owner of property that has reached nisab [minimum amount upon which zakat is due] which is the equivalent of 85 grams of 21 carat gold. It must be in surplus of the zakat payer’s needs and those of his dependents. The zakat amount is one quarter of a tenth (i.e. 2.5%) of the property’s value. Any debts are to be deducted before calculating zakat which becomes due only on the remaining sum.

Based on the above, since the plot of land was purchased with the purpose of investment, zakat is to be paid on its sale price. This is the opinion of Imam Malik Ibn Anas and the opinion chosen for fatwa on this issue.

No zakat is due on a property purchased for private residence. If circumstances change and the property is sold, zakat becomes due only on the profit if it reaches nisab and after one lunar year passes while it is in the owner’s possession.
And God the Almighty knows best.