If you own a property in Spain but have IBI tax debts or are falling behind on Community Fee payments, you are not alone. These debts are more common than many realise, especially from owners who also stopped paying their mortgage on their Spanish holiday home.
Left unresolved, these arrears can escalate quickly and have serious legal and financial consequences. At EU Property Solutions, we specialise in helping you resolve complex property debt issues in Spain, including IBI tax and community fee arrears.
What Are IBI Taxes and Community Fees?
IBI, or Impuesto sobre Bienes Inmuebles in Spanish, is a local property tax in Spain, similar to council tax in the UK. It is paid annually to the local town hall and is based on the property’s cadastral value (an administrative valuation of your property determined by the Spanish Catastro office).
Community Fees are service charges payable to the Comunidad de Propietarios (Residents’ Association) in your urbanisation or apartment complex. These fees cover the maintenance of shared spaces like lifts, gardens, pools, and security.
The Consequences of Falling Behind
Many owners in Spain, particularly those who no longer use or rent their property, underestimate the seriousness of these debts. But the Spanish legal system treats them with great importance:
1. Accruing Penalties and Interest
Unpaid IBI tax and community fees can quickly mount due to penalties, interest, and legal costs. A small arrear can become a substantial liability within a few years.
2. Court Action and Legal Proceedings
- Both local councils and communities of owners can initiate legal proceedings, including:
- Embargos (charges) against the property
- Court orders and debt enforcement
- Asset seizures in Spain and even enforcement in the UK or Ireland through EU law mechanisms
3. Risk to Property Ownership
In some cases, long-term non-payment can lead to the forced auction of your Spanish property, even if it is mortgage-free.
Why These Debts Must Be Taken Seriously
Whether your property is in Costa del Sol, Costa Blanca, Murcia, or elsewhere in Spain, local authorities and community presidents are becoming increasingly aggressive in pursuing these debts. Many owners mistakenly believe that walking away or ignoring the issue will make it disappear-but unfortunately, this is not the case.
How EU Property Solutions Can Help
At EU Property Solutions, we have helped hundreds of British and Irish owners find real, workable solutions to their Spanish property debt problems—including IBI and community fee arrears.
Here’s how we can assist:
✔ Property Debt Assessments
We will review your current situation, including outstanding debts, legal actions, and any mortgage shortfalls.
✔ Negotiation with Creditors
Our multilingual legal team in Spain can negotiate directly with creditors on your behalf to stop legal action and reduce or restructure your debt.
✔ Voluntary Surrender / Disposal
In cases where the mortgage has not been paid in a substantial amount of time and the property is no longer viable, we can explore options such as a voluntary surrender or assisted sale, helping you exit the situation cleanly and avoid future financial liability.
✔ Avoid UK Asset Risk
Some debts in Spain can be enforced in the UK or Ireland. We’ll help ensure your local assets are protected and prevent unnecessary stress and surprises.
We pride ourselves on delivering personalised, confidential, and legally sound advice to every client. Whether you’re recently in arrears or have been ignoring letters for years, there is always a solution—and it’s never too late to act.
Take the First Step Towards Resolution
If you’re struggling with IBI tax debts or unpaid community fees in Spain, speak to the team at EU Property Solutions today. We offer a free, no-obligation consultation to assess your situation and outline the best options for your future.
