Community fees & IBI tax arrears

IBI and community fees – Know what you need to pay

When purchasing a property in Spain, it is important to know about the extra costs that may come with the home, and in many cases, owners don’t know what they are in for.

Community fees are owed to the president of the complex and put towards maintenance of the common arrears, such as swimming pool cleaning. IBI taxes are paid to the local authorities and are used for local services such as rubbish collection and street lighting.

Repercussions of not paying your taxes

If you cannot pay your community fees, the president will contact you and demand payment as soon as possible. Owners who fail to do this will likely receive a court demand, and in extreme cases, it has been known that communities have forced sales of properties to collect the debt.

IBI taxes that are not paid can incur a penalty fee, which ranges from 5% to 20%, depending on the location of your property. Like community fees, they can also push to have the property sold to deal with the debt, and they have been known to hire debt collection agencies in the UK to win back the money.  

Explore your tax debt options

If you are struggling to pay your community fees, IBI taxes or mortgage, it is time to take action and lift the burden.

EU Property Solutions has been working with clients who have struggled with foreign property debt for over a decade, and we have achieved life-changing settlements during that time. We work hand in hand with our Spanish legal team to ensure each client achieves a favourable outcome to lift the burden.