Communal charges for apartments in Spain

f you buy a property in Spain that is part of a (newly built) complex, you are obliged to pay the so-called Community of Owners fee. This is one of the monthly expenses for the owners of a property in Spain if the property is part of a complex or building. All owners who are part of the complex or building are obliged to pay the fee for the maintenance of shared facilities such as swimming pools, gardens and access roads. Those who own a property with additional facilities such as a concierge, golf course or even a spa and gym in luxury complexes can expect a higher fee.

It should be noted that everything related to the Community of Owners of real estate in Spain is regulated by the Horizontal Property Law, which determines the rights and obligations of the owners of the objects that make up the building or complex. We know that this topic can be a bit confusing, especially for foreigners who have bought a house in Spain and are often surprised by these hidden costs in Spain. For this reason we are going to explain everything you need to know about the contribution for the VVE in Spain.

How much is the contribution to the Homeowners Association in Spain?

First of all, it is important to note that the fee for an Owners’ Association in Spain can vary considerably depending on the services offered within the complex, but make sure you know how much this is before you buy the property so that the monthly costs don’t come as a surprise. The amount you pay could be as little as €50 per month, but can also amount to several hundred euros in the case of more exclusive complexes. The amount will also depend on your individual property, and is determined by a participation coefficient, a means of establishing the share of each property, commercial unit or garage in the income and expenses of the Owners’ Association.

Not everyone will have to pay the same contribution, this will depend on the participation quota determined for each property in the building deeds and which is influenced by various factors, such as the surface area of ​​the property, the height and the location in the building of each of the properties that make up the building.

Who has to pay the Homeowners Association fee in Spain?

The Horizontal Property Act imposes this obligation on all property owners in a complex. Not only do they have to pay the usual contribution, but also the costs arising from the use and maintenance of the property, regardless of who lives there. In other words, if you rent out your property, the tenants do not pay a contribution to the Owners’ Association because they are not the owners of the property.

However, the Spanish Rental Law (LAU) allows a landlord to charge the tenant certain costs for the maintenance of the property, such as a contribution to community fees, real estate tax (IBI) or rubbish collection, although this is not common practice.

How is the amount of the contribution determined?

To determine the amount of the contribution for the Owners’ Association, the previously mentioned participation coefficient is calculated, which is the owner’s share in the facilities and common areas of the building or complex.

To calculate the participation coefficient, the following must be taken into account:

• Usable floor area of ​​the home or room
• The intended use of certain common elements
• Expenses not allocated equally to owners: sometimes you don’t have to pay for certain amenities if you don’t use them, such as the swimming pool (although this is not common)

The amount of the contribution can be changed if the members of the association so wish, i.e. the way in which the costs are divided can be changed as long as this is decided unanimously by a vote at a meeting of the homeowners. This must then be registered in the land registry by means of a public deed.

Types of Owners’ Association Costs in Spain

There are two types of costs in every Owners’ Association: ordinary costs, which are the basic elements to keep the building in good condition; and extraordinary costs, which are expenses that were not initially provided for in the annual budget.

Regular costs

The ordinary costs, which will be paid according to the quota allocated to each homeowner, in accordance with the adopted agreements, the law and the statutes, include:

• Maintenance costs and costs for usual services (cleaning, bank charges, garage, swimming pool, garden maintenance, maintenance of pipes, roofs, boilers, etc.).
• Expenses for common areas, such as waste collection.
• Reserve fund, which must amount to at least 10% of the most recent budget and is used to cover work resulting from unforeseen circumstances.
• Necessary work: work that is essential for the habitability and safety of the building, the maintenance and upkeep of the structure and compliance with laws and regulations.

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

Extraordinary costs

Extraordinary expenses are expenses that are not included in the association’s annual budget. To reach agreement on these types of expenses, an extraordinary meeting is usually held where payment is determined.

Is it mandatory to pay all contributions?

It is important to be clear that Spanish law states that all normal expenses are mandatory for the owners. Everyone must pay the normal expenses, even if the owners do not use certain services or facilities of the complex.

With extraordinary expenses, it is different; if the payment of extraordinary expenses is approved and the work covered by the extraordinary expenses is necessary for the maintenance of the building, the owner is obliged to pay for it. On the other hand, if the work concerns “services or improvements not required for the good maintenance, habitability, safety and accessibility of the building, and the cost of which exceeds the amount of three ordinary monthly payments”, the owner who voted against the additional expenses is not obliged to pay the surcharge, even if he/she will benefit from the improvement.