I bought an apartment in my home country for about $58000, but $18000 of that was paid by my father. I am renting this apartment to a person who pays the monthly rent directly to my father until my father gets back his money. After that I will be free to do whatever I want with my apartment, whether to rent it or live in it or leave it empty. Right now I owe some loans (about $10000) which I must repay gradually from my work. Do I have to pay Zakah (2.5% every year) from the apartment that I own?

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

You do not have to pay the Zakah for this flat if you want to live in it or to rent it in the future.

Al-Nasa’e reported that Abu Hurairah narrated that the Prophet (Sallallahu Alaihi wa Sallam) said: “A person does not have to pay Sadaqa (Zakah) on his horse or his slave”.

The flat you want to live in is similar to the above and if you sell it, then you pay the Zakah after a whole lunar year passes and you still possess the Nisaab from that amount (equivalent of 85 grams of gold).

If you want to sell it, then the Zakah should be paid on its value after having paid the debts, but if you rent it, then you have to pay the Zakah on its benefits (income from rent) after having paid the debts, and after a whole year passes and if the amount reaches Nisaab (the minimum amount liable for Zakah).  The Zakah is as you have mentioned 2.5%.

Allah knows best.