Community Fees in Spain

If you’ve bought a property in Spain or are looking for your perfect home in the sunshine, then it’s important to know about all the added expenses you’ll be expected to pay. As well as Non-Resident Income Tax and Spanish Property Tax (IBI), you’ll also need to pay community fees in Spain (Gastos de Comunidad). 

If your property is part of a community, then you’ll be liable to pay regular instalments for the general workings and upkeep of that community. You need to know what it is, how much you’ll need to pay and what happens if you fall behind with your payments.

In this guide, we’re going to explain everything you need to know about community fees in Spain so you can get on with enjoying your home and not worrying about unexpected costs.

What Are Community Fees in Spain?

Community fees are not unique to Spain – in fact, many countries do something very similar. If you buy property in Spain that shares any element with another property, then it’s considered a community property. These shared features could be a swimming pool, garden, access road or sports facilities. In an apartment complex, community spaces are considered entrance halls, lifts, stairwells and contributions to general maintenance, such as when things break. 

In older communities, costs are likely to be lower because there are often fewer facilities. Larger and more upmarket properties will pay more, especially if they have common spaces such as swimming pools, spas and sports facilities.

When Should You Pay Community Fees?
This really depends on the community and what they have voted for in the past. It’s common to pay community fees every quarter, although some may ask for the payments monthly. It’s unlikely but some communities also ask for annual fees to be paid upfront.

How Much Are Community Fees in Spain?
There are two main factors to determine how much your community fees will be. They are:

●    The services provided
●    Your share of the community

For example, if your community offers services like 24-hour security, a lifeguard, pool cleaning or a gym, then you can expect to pay more in community fees. However, if the common areas in your community include a stairwell and a lift, then it will be much less. 

Likewise, if your property is one of the bigger ones in the development, then you have a bigger piece of the pie and will need to pay accordingly. Having a larger property also contributes to your voting rights, meaning you’ll have more of a say at your Annual General Meeting (AGM).

Some property owners may pay around €100 a quarter but owners of more high-end developments could be expected to pay over €1,000. It is generally budgeted based on previous annual expenses.

Who Has to Pay Community Fees?
All property owners in a community must pay fees, which is why you need to know about them before buying your Spanish property. If you rent out your property, it’s still your responsibility to pay the community fees, not the responsibility of the tenant. 

Can Community Fees Change?
Normally, community fees are discussed and agreed upon in your community’s AGM. A fair price is usually agreed upon as owners want their property to be maintained but don’t want to pay more than is absolutely necessary. Community fees may increase slightly every year with inflation but very rarely go over it.

So, what happens when major work is needed on a building or community space? Well, that really depends on the system that the owners have voted for. Some communities prefer to pay a little extra in small instalments and have a spare pot for things such as retiling a pool or painting a facade. Other owners prefer to pay in larger instalments as and when the community needs updating. 

Checking Community Fees Before Purchasing
It’s really important to know how much and when your property community pays its fees. This way you can budget accordingly and won’t fall behind with any payments. Most owners decide to set up a standing order so that it’s paid automatically.

Something else that’s very important to check is that the previous owners were up to date with their payments.

When purchasing a property, your lawyer should carry out a thorough check to ensure there are no debts associated with the property. One such possible debt is outstanding community fees. In most cases, the outstanding amount is deducted from the purchase price to ensure it’s settled before the deeds are signed and exchanged.

If outstanding debts are not checked, you may be liable to pay them.

What Happens If You Don’t Pay Your Community Fees in Spain?
It’s not uncommon for owners to go without paying their community fees – which means Spain has put many laws in place to help communities receive the money they’re due. Communities can take legal action against those who aren’t paying in a bid for them to resume payments. This can include charging late payment fees and interest which can really increase the price and the amount they owe. 

A community can also issue a court demand for payment and the non-payee may have to pay all legal fees associated with the case. 

In very extreme cases that have gone on for years, the community of owners can ask for a forcible sale of the property at auction and all outstanding debts are paid with this money.

So, as you can see, paying your community fees in Spain is really important, especially if you don’t want to risk losing your property and you want to maintain a good relationship with the other owners in your community.

Examples of Community Fees

Here are some examples of ordinary community expenses that you can expect to pay as part of being a property owner in Spain:

Maintenance Expenses and Services: Cleaning (including pool, hallways, garages and common areas); gardening; maintenance of boilers, pipes, roofs and lifts; rubbish collection; and repairs such as for locks and general wear and tear.

Reserve Pot: This money helps to pay towards unforeseen expenses such as weather damage.

Extra Necessary Maintenance: All buildings need to comply with Spanish law to ensure they’re safe to live in. Some of the community fees go towards long-term extra work to guarantee the structure and the facilities are safe to live in.

Occasionally, there may be extra fees on top of the regular ones which arise from an emergency or a change in the community of owners. Usually, an extra meeting is called to discuss the payments and the schedule.

Community Fees in Spain – Why Are They So Important?

If you share any common space with other property owners, then you’ll need to pay community fees. These help to ensure these spaces are clean, maintained and safe for use – so it’s in your interest to pay them. 

You must be aware of how much you need to pay and when so that you don’t become indebted to your community as, in the worst-case scenario, this can result in the resale of the property. 

Opening a property bank account with Bueno ensures you have a Spanish IBAN number so that you can manage all your property expenses and payments directly from our app or website. It helps to simplify property banking, so you can concentrate on enjoying your home rather than worrying about unexpected fees.