YOUR GUIDE TO COMMUNITY FEES IN SPAIN

What is community real estate?

Any property in Spain that shares an element with another property is classified as a community property. Shared elements usually include a swimming pool, sports facilities and gardens. Community properties in apartment blocks share lobbies, staircases and lifts as well as external features. Properties in larger communities may also include streets and public lighting.

When you buy a community property in Spain, you automatically become a member of the community of owners and must fulfil your obligations and comply with the rules and regulations of the community.

What are community charges?

Community fees are paid for the maintenance and improvement of common elements and include the following:

Electricity and water bills;
Common area cleaning;
Professional services (e.g., concierges, gardeners, pool cleaners, lifeguards, etc.);
Elevator maintenance;
Insurance of common elements.

Owners' associations must provide a full accounting of income and expenses annually. These accounts must be available to all owners and you should receive a copy after the Annual General Meeting (AGM).

How much do community fees cost?

Community charges in Spain vary considerably from one community of owners to another. In older buildings with few services, you may pay as little as €100 per quarter; in luxury residential projects, you may be liable for more than €1,000 every three months.

The amount you pay depends on two factors - your share of the common elements and the services you provide.

Your share The square footage of your property is taken into account to calculate your share of the common elements. This figure is then applied as a percentage of the total area to determine your share (cuota de participación in Spanish). Logically, the larger the property, the higher the share and community fees. Your cuota de participación also determines your voting rights - owners of larger properties have a higher percentage of the vote.

Services Provided Services within an owners' association range from cleaning services and elevator maintenance in an older condominium to a comprehensive range of amenities such as a gym, swimming pool and 24-hour security in luxury residential developments. Logically, the more services you receive, the higher the community fees you pay.

Did you know? The percentage of your share is listed on your title deed. You might also like to read our article on the property purchase process.

Who decides how much owners pay?
Each HOA has an annual budget that is based on previous year's expenses. The budget for the coming year is approved at the Annual General Meeting (AGM) and each owner pays an amount corresponding to their cuota de participación.

Did you know? The period of payment of community fees depends on the specific community. Some collect monthly or quarterly, while others may have semi-annual payments or exceptionally receive an annual bill.

Can community fees change?
Theoretically, community fees can change as often as agreed at the annual general meeting if a majority of owners vote in favour. In practice, however, most fees are rarely increased above inflation each year because few people want to pay more.

Did you know? If you own a garage and/or storage space within the community, you are also responsible for the community fees on those spaces.

Are there additional community fees?
Occasionally, an owners' association must perform extraordinary maintenance or modifications to common elements due to safety or legal requirements. For example, rebuilding a façade or installing a ramp at the entrance or a fence around the pool. Regular maintenance is also required, such as painting the façade or replacing the pool tiles.

This work is usually not included in the regular community fees (unless the owners' association has a reserve fund) and is usually paid for in extra installments. For example, three extra payments per year from each owner.

Did you know? Community charges are just one of the annual fees associated with owning a property in Spain. We've also written an article about the other annual costs.

What about previous community charges?
When you buy a property in Spain, your solicitor will ensure that it is free from debts and encumbrances. This includes outstanding community charges. If the seller has debts to the community, your lawyer will usually deduct the appropriate amount from the purchase price or ensure that the debt is paid off before the title deed is signed.

Did you know? The seller is required to provide a certificate from the homeowners' association of any outstanding debts when signing the title deed.

What happens if the owner fails to pay?
Spanish law acts quickly when an owner fails to pay community charges. Once non-payment is detected, the owners' association first contacts the debtor and asks for payment as soon as possible. If this does not happen, the community issues a court summons for payment. If this summons is ignored, the property is embargoed. In extreme cases, the HOA may request a forced sale of the property at auction to obtain payment for outstanding debts.

It is best to set up community charge payments via direct debit at your bank in Spain. This will ensure timely and efficient payment. It's also a good idea to carry out periodic checks to make sure you're OK with your community charges.

Did you? Owners with outstanding community charge debts can attend community meetings but are not entitled to vote or speak at meetings.


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