Community fees and IBI taxes can be unexpected extra costs for property owners in Spain. They become a more serious issue when you are struggling to stay up to date with these payments or if you have to choose between paying these or your mortgage.
Community fees are owed to Community Presidents in Spain. These Presidents are charged with ensuring the community in which you have purchased is visibly up to scratch – for example, the maintenance of common areas, swimming pool cleaning and general upkeep of grounds.
IBI taxes are paid to the local authority and are used to pay for local services and infrastructure such as roads, rubbish collection, street lighting and general maintenance.
What Happens if I Can’t Pay?
If you can’t pay community fees the community president will contact you to request payment as soon as possible. If you can’t pay, the community issues a court demand for payment. In extreme cases, the community of owners can request the sale of the property to receive payment for outstanding debts.
It is important for borrowers to keep up to date with these fees as debt collection agencies can be hired to chase you in the UK and Ireland
If you don’t pay IBI taxes you will be charged a penalty fee. This can be between 5% and 20% of the total owed. Ultimately failure to pay I.B.I on a property could result in the loss of the property.
If you are struggling with community fees and IBI taxes, you may also be falling behind on your mortgage payments. EU Property Solutions assist people daily who have significant mortgage arrears and missed community fee payments. Many borrowers who purchased properties in Spain were not aware of costs such as Community Fees and IBI taxes. These additional costs and Mortgage Debt in Spain can result in significant stress.
Missed payments are added to the balance along with penalties and interest. Furthermore, you risk legal action and ultimately you are putting your home assets and income at risk if you do not act.
What are your options?
If you cannot maintain payments, then swift action is needed. If you act quickly through an intermediary, such as EU Property Solutions, then the matter can be brought under control and an amicable and desirable outcome achieved.
In most Spanish settlements we can achieve:
- The surrender of the property to the Bank and a complete debt write off.
- We can even negotiate Community Fees arrears and IBI tax arrears into the settlement.
Visit our YouTube channel, we publish videos on a weekly basis. This week’s video sees our client, Sue Geraghty discuss the issues she was facing before appointing our services. CLICK HERE TO WATCH.
If you are struggling with any repayments on your Spanish Property call EU Property Solutions on 0330 124 1230 for a free case review.