Community fees in Spain: what are they and how much do they cost?

If you buy a property in Spain that is part of a development then you will be obliged to pay what are known as community fees. This is one of the monthly costs of owning a home in Spain if the property is located in a development. All property owners within the development are required to pay community fees for the upkeep of shared amenities like swimming pools, gardens, and access roads. Those who own properties with additional facilities like a doorman, golf courses or even spas in luxury developments can anticipate paying higher community fees.

It should be noted that everything related to the community of property owners in Spain is regulated by the Horizontal Property Law, which stipulates the rights and obligations of the owners of the properties that make up the building or community. We know that this subject can be a bit confusing, especially for foreigners who have bought a home in Spain and are often surprised by these hidden costs of living in Spain. For this reason, we are going to explain everything you need to know about community fees in Spain, including what they are and how much they cost.

How much is community charge in Spain?

First of all, it's important to note that community charges in Spain vary considerably depending on the services offered within your community, but you should be aware of this figure before you purchase your property, so the monthly fee doesn't come as a surprise. The amount you pay could be as low as 50 euros per month but could also be several hundred euros for more exclusive developments. The amount will also depend on your individual property by means of a participation coefficient , which is a way of determining how each property, premises or garage participates in the benefits and charges of the community of owners.

Not all properties will have to pay the same community fees, but it will depend on the participation quota that each property has stipulated in the deeds of the building and which is influenced by several factors, such as the surface area of the property, its height, its location within the building and the interior and exterior location of each of the properties that make up the building.

Who has to pay community fees in Spain?

Regarding who must pay the community fee, the Horizontal Property Law attributes this obligation to all property owners in a community, who will have to pay not only this fee but also the expenses derived from the use and maintenance of the property, independently of who lives in it. In other words, if you rent out your property, the tenants will not pay the community fee as they are not the owners of the home.

In spite of this, Spain's Urban Lease Law (LAU) allows a landlord who has his property for rent to charge the tenant certain expenses for the maintenance of the property, such as a contribution towards the community fees, Property Tax (IBI) or rubbish tax, among others, although this is not the most common.

How is a community fee set?

To set the community fee, the previously mentioned participation coefficient is calculated, i.e. the percentage that determines the owner's share of the installations and common areas of the property.

In order to calculate the participation coefficient, the following must be taken into account:

• Usable floor area of the flat or premises
• The intended use of certain common elements.
• Expenses that are not imputed equally to the owners: Sometimes it is not necessary to pay certain expenses if you are not going to enjoy them, such as, for example, the swimming pool (although this is not usual).
• Exemptions for neighbours who voted against certain improvements

The community fees could be modified if the neighbours so wish, i.e. the way in which the expenses of the property are distributed could be changed as long as it is unanimously decided by a vote in a meeting of the homeowners in the community. Subsequently, it must be registered in the Land Registry by means of a public deed in order to be valid.

Types of expenses in a community of owners in Spain

There are two types of expenses in any community of owners: ordinary expenses, which are the basic needs of the building to keep it in good condition; and extraordinary expenses, which are those that are not initially foreseen in the annual budget.

Ordinary expenses

Among the ordinary expenses, which will be paid according to the quota that corresponds to each homeowner, in application of the agreements adopted, the law and the statutes are:

• Maintenance expenses of the usual services (cleaning, bank charges, garage, swimming pool, gardening, maintenance of pipes, roofs, boilers, etc.).
• Expenses of the common areas, such as rubbish collection.
• Reserve fund, which cannot be less than 10% of the last ordinary budget and is used to cover works that have arisen due to unforeseen circumstances.
• Necessary works: These will be considered as such those works that are essential for the habitability and safety of the building, the maintenance and conservation of the structure and compliance with the laws and regulations.

It's important to point out that all ordinary expenses must be paid by the owners, whether they use them or not.

Extraordinary expenses

Extraordinary expenses refer to those that are not included in the annual budget of the community. In order to agree on this type of expense, an extraordinary meeting is usually organised where the type of payment is decided, increasing the contribution of each owner by means of payments or by the system that is agreed upon.

Is it obligatory to pay all community expenses?

It is important to be clear that Spanish community rules state that all ordinary expenses are compulsory for the owners. Everyone must pay the ordinary fees, even if they do not make use of certain services of the property.

The issue of extraordinary expenses is different, because if the payment of an extraordinary expense is approved and the work covered by the extraordinary expense is necessary for the upkeep of the building, the owner will be obliged to pay it. On the other hand, if the works are for "services or improvements not required for the proper conservation, habitability, safety and accessibility of the building, which are not required and whose installation fee exceeds the amount of three ordinary monthly payments of common expenses", the owner who has voted against the surcharge will not be obliged to pay the surcharge, even if he/she is going to benefit from the improvement.