Complete Zakat Guide for Expats 2024

Zakat is a 2.5% annual charity on wealth exceeding the nisab threshold. It purifies your wealth and helps redistribute to those in need.

The nisab is based on the value of: - **Gold nisab:** 7.5 tolas (87.48 grams) - **Silver nisab:** 52.5 tolas (612.36 grams) **Current values (PKR):** - Gold nisab: ~PKR 1,100,000 (varies with gold price) - Silver nisab: ~PKR 90,000 (varies with silver price) **Which to use?** Most scholars recommend using silver nisab as it helps more poor people, but using gold nisab is also valid.

### ✅ Zakatable Assets - Cash in bank accounts (PKR and foreign currency) - Gold and silver (jewelry, coins, bars) - Stocks (market value) - Business inventory - Rental income (after expenses) - Accounts receivable ### ❌ Non-Zakatable Assets - Primary residence - Personal car - Furniture and appliances - Clothing - Business equipment

### 1. Cash & Savings Add up all cash in: - Bank accounts (current, savings) - Physical cash at home - Money market funds **Zakat = Total × 2.5%** ### 2. Gold & Silver Calculate current market value: - Jewelry (by weight, not craftsmanship) - Gold coins and bars - Silver items **Zakat = (Gold value + Silver value) × 2.5%** Use our [Gold Price Tracker](/gold) for current rates. ### 3. Stocks There are two methods: **Method A: Full Value** Pay 2.5% on entire stock value (simpler) **Method B: Proportional** Pay Zakat only on zakatable assets of the company: - Cash & receivables - Inventory - Exclude: Property, equipment, intangibles Most scholars say Method A is acceptable and safer. ### 4. Real Estate Investment - **Rental property:** Zakat on rental income saved for a year - **Property for resale:** 2.5% on full market value - **REITs:** 2.5% on unit value ### 5. Foreign Currency Convert to PKR at current rate, then calculate 2.5%.

### 401(k) / Pension (US/UK/UAE) Scholars differ: - **View 1:** Pay when you withdraw - **View 2:** Pay annually on vested amount Consult a local scholar for your situation.

Choose a consistent date each year (many choose Ramadan). Calculate your net zakatable wealth on that date.

You can subtract: - Immediate debts (due within the year) - Mortgage principal (some scholars)

Zakat can be given to: 1. The poor (fuqara) 2. The needy (masakin) 3. Zakat collectors 4. Those whose hearts are to be reconciled 5. Freeing slaves 6. Those in debt 7. In the cause of Allah 8. Travelers in need **In Pakistan:** Trusted organizations include Al-Khidmat, Edhi Foundation, Saylani Welfare, and local mosques. --- **Calculate your Zakat:** [Use our Zakat Calculator](/calculators/zakat)