Community Fee & IBI Tax Arrears
Community fees and IBI taxes are another unexpected cost for property owners in Spain, especially when they are already struggling with mortgage payments.
Despite what many people think, these still have to be paid and can bring serious consequences if you fall behind with payments.
Read on to find out more and see how we can help.
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 ensure the community in which you have purchased is visibly up to scratch. This includes 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. These are the equivalent of council tax or rates in the UK.
What Happens If I Can’t Pay Community Fees or IBI Taxes?
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 lenders will hire debt collection agencies 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 IBI on a property could result in the loss of the property.
Mortgage Arrears
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 unaware of costs such as Community Fees and IBI taxes. These additional costs and Mortgage Debts in Spain can result in significant stress.
Your lender will add missed payments 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.
Community Fees & IBI taxes: What are your options?
If you cannot maintain payments for community fees, IBI taxes or your mortgage, then you need to take swift action.
Our experienced, UK-based team at EU Property Solutions work closely with our Spanish legal teams to ensure a favourable outcome can be met with each case that we take on. We have been helping clients who struggle to sell their properties for over a decade. In that time, we have achieved hundreds of life-changing settlements.
If you would like to find out your options, you can get in touch with our team on 0330 124 1230 or email [email protected]
Can You Include These In Other Settlements?
If you are behind on community fees and IBI taxes, it is likely you are struggling with property debt. Although these three are owed to different lenders, we can negotiate simultaneously to settle them all. This means when we achieve a settlement, all your debts are sorted.
Should I Pay My Mortgage Or Fees & Taxes?
Ideally, you would be able to pay both, but this is not always the case. Your mortgage lender is much more likely to aggressively pursue you for debt. However, unpaid community fees and IBI taxes can also have consequences. Realistically, if you struggle to pay these costs, your property is unaffordable and will likely become more unaffordable as time goes on.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
Why not get in contact?
We are always happy to offer a free, confidential review of your situation.
This helps us understand exactly what you need and helps you understand the best options to solve your property debt issues.