Zakat is payable for the poor and needy wherever they are. It is permissible to transfer zakat to another town. It is also encouraged to pay it to poor relatives as it gives one the advantage of kindness to relatives.

The transfer of zakat to a different town

It is permissible to transfer zakat from the town of the payer to a near or distant town when this is needed. The distant town may be poorer than the town where the payer lives, or he may have poor relatives in a distant place. To pay one’s zakat to one’s relatives gives one the advantage of kindness to relatives, which is strongly encouraged by Islam. This is the correct view, because the verse defining the eight classes of beneficiaries is general in its import:

This means that it is payable to the poor and the needy wherever they happen to be.[1]