What is Zakat?

• What is it?

Zakat is the third pillar of Islam and consists of the percentage of the accumulated surplus wealth that during a lunar year is not used, provided that the nisab (minimum amount to be paid) has been reached, which the Muslim is obliged to pay.

The literal meaning of the Arabic word Zakat is growth, increase, and purification. The legal term here refers to the small percentage levied on excess wealth of various particular classes – namely certain types of agricultural products, livestock, commercial goods, and monetary wealth – and which is collected each year officially when it exceeds certain amounts and then distributed among specific categories of needy people. The reason for the use of this word refers to two references contained in the Qur’an in which the connection with the original meaning appears: “Take of their riches sadaqa with it you will cleanse and purify them” (9:103) and “But whatever you give generously seeking the face of Allah… To those it will be multiplied” (Surah of the Romans, 30:39). Zakat is considered an act of worship similar to prayer, fasting, or pilgrimage.

The obligatory nature of Zakat is specified in the Qur’an, and its importance is demonstrated by the fact that it appears almost thirty times, connected with the command to pray:

“And establish salat, give Zakat, and obey the Messenger so that mercy may be given to you” (Surah of Light, 24:56)

“The believers are friends allied with one another, enjoining what is recognized as good and forbidding what is reprehensible, establishing salat, giving Zakat and obeying Allah and His messenger. To those Allah will give His mercy; verily, Allah is Mighty, Wise, (Surah at-Tawbah, 9:71).

And then the command appears:

“Take of their riches sadaqa, with it you will cleanse and purify them” [Surah al-Tawbah, 9:103].

In another passage, the categories to which Zakat may be given are specified:

“Gifts (here the expression gifts, “sadaqat,” refers specifically to zakat) are only for the needy, the poor, those who work to collect and distribute them, for those whose hearts are tamed, for rescuing slaves, for those who are burdened with debt, for the cause in the way of Allah and for the son of the way. This is a prescription of Allah and Allah is Knowing and Wise ”. (Surah at-Tawbah, 9:60).

Zakat is paid on matters with intrinsic value. Zakat on paper money would, under normal circumstances, be paid for the value of the paper by weight, and not the face value of a banknote. The position within Maliki fiqh is that Zakat is not applicable on the face value of paper money.

In spite of this, we understand that since paper money is the widespread monetary form today and other forms with intrinsic value are in disuse, we find ourselves in a situation of darura, necessity, and the damage of not paying on the nominal value of paper money is greater than that of paying for it. So this allows the application of zakat to the face value of paper money without taking into account its intrinsic value.

• Who pays Zakat?

Zakat is obligatory on every individual, male or female, Muslim, who is free and sane and who has had full possession of the minimum amount, the nisab, for a lunar year and who continues to have it at the end of this year

There is a difference of opinion as to whether a child who has not yet reached puberty or someone who is not sane is obliged to pay Zakat.

Zakat is 2.5% of the total sum of wealth that can be calculated monetarily, provided that the nisab is exceeded.

The nisab, or minimum amount, is the equivalent of 85 grams of gold (20 gold dinars) or 595 grams of silver (200 silver dirhams) in the local currency (this would be equivalent to €10,242.5 in gold and €1,255.45 in silver, as of 08/04/2026). This minimum wealth must have been held for one year.

According to the consensus, the nisab will be calculated in gold, therefore the minimum amount to be valued in the local currency is stipulated at €10,242.5.

If you have possession of gold or silver, the nisab is half a dinar for every 20 and 5 dirhams for every 200, or its equivalent in grams.

• On what is Zakat paid?

Zakat is paid on certain types of agricultural products, livestock, trade goods, monetary wealth, and other less common categories.

Zakat becomes obligatory when we attain the nisab of one of these categories and have possession of it for one lunar year.

• How much Zakat is paid?

The general amount that is paid from Zakat is 2.5% of the excess wealth accumulated during a year. Other categories, such as livestock, agriculture, or goods for sale that are held for a long period of time, may have different considerations about the percentage to be paid and the regularity of their payment.

• Who receives it?

Allah, may He be exalted, stipulates in the Qur’an the categories that are recipients of Zakat:

“Gifts (here the expression gifts, “sadaqat,” refers specifically to zakat) are only for the needy, the poor, those who work to collect and distribute them, for those whose hearts are tamed, for ransoming slaves, for those burdened by debt, for the cause in the way of Allah and for the son of the way. This is a prescription of Allah and Allah is Knowing and Wise.” (9:60)

This stipulates that there are 8 categories that receive Zakat: (1) the needy, (2) the poor, (3) those who work to collect and distribute it, (4) those whose hearts are tamed (close to Islam), (5) to ransom slaves, (6) to those burdened by debt, (7) to those who strive in the cause of Allah, (8) to travelers who have no means.

These are the categories mentioned in the Qur’an, but when it comes to making them applicable, the ulama have established the necessary parameters to be able to clearly discern to whom Zakat is given and what it can be used for by dividing these eight categories into other subcategories.

• How is it collected?

The traditional way, and the practice in the time of the Prophet, that peace be upon him, is that collecting and distributing Zakat is the responsibility of the person of authority from among the Muslims of a community. This, in turn, appoints people who are trustworthy and have knowledge of the Zakat regulations to collect and distribute it.

Although today in many places such an authority does not exist or does not have the competence to collect and distribute it and other institutions and organizations take its place, which is feasible, it is necessary to clarify that, according to Fiqh, the collection and distribution of Zakat is a responsibility of the leader of a community since it has an important socio-political component.

• How is it distributed?

Zakat has to be distributed first in the locality where it is collected to any of the categories that can receive it and it is the power of the person of authority or those delegated by him to decide which categories are the most in need of attention, as long as they are within the stipulated parameters.

People who fall into the categories that can receive Zakat can ask the organizations or people in charge of distributing it to give it to them, and these same organizations and people can distribute it to needy people without their request.