Community fees in Spain: special levies and how to resolve disputes

For property investors, the owners' association is a cost variable that is often underestimated. An unexpected €8,000 derrama (a one-off special levy) to refurbish the façade can wipe out the year's return. Understanding how the owners' association works, what your obligations are and how to avoid surprises is part of good due diligence.

How fees and special levies are calculated

The ordinary community fee is calculated according to each home's participation share (the coeficiente de participación, set out in the deed that divides the building into separately owned units). It's proportional to the size of your flat relative to the whole building. Special levies are approved at the owners' meeting and are shared out in the same way.

Types of special levy and when they're compulsory

• Compulsory accessibility works: The Ley de Propiedad Horizontal (Spain's law on buildings divided into separately owned units) obliges owners to co-finance accessibility works (a lift, ramps) up to an amount equivalent to 12 ordinary monthly fees, even if you vote against them.
• Maintenance works: The building must be kept in good condition. The owners' meeting can approve special levies to cover these works by a simple majority.
• Improvements: These require a qualified majority (3/5 of owners and of shares). If you vote against and they don't bring an objective benefit, you can opt out of paying (but you are then also excluded from the benefit of the improvement).

How to spot problems before buying

Before buying any flat, ask for the certificate of any debts owed to the owners' association. Also ask for the minutes of the last 3 owners' meetings: they reveal pending special levies, disputes, works under way and the financial health of the association. This document is your best tool for due diligence on the owners' association.

What to do when there's a serious dispute

Disputes within the owners' association (owners who don't pay, presidents who act irregularly, noisy neighbours) are resolved first by trying mediation, then through the court of first instance. The Ley de Propiedad Horizontal has specific procedures for claiming community fee debts quickly.

Before buying: RadarPro includes information on registered debts for auction properties and bank repossessions. Also read the guide to the nota simple (the Land Registry extract) to spot charges before buying.