community fees. how is the fee worked out

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05 Jun 2009 00:00 by altair Star rating. 2 posts Send private message

Hello out there, has anyone got any idea how community fees are worked out and who works it out I have lived here in spain for 9 years, and it is something that has intrigued me ever since I have been here. I live on a complex that consists of four, seven story blocks of apartments, each block has two lifts one block is all studios 16 studios to each floor two blocks are 1 bedroom apartments 12 apartments to each floor one block is mainly 3 bedroom apartments community fees for studios are on average 40 €uros a month community fees for 1 bedroom apartments are on average 50/60 €uros a month community fees for 3 bedroom apartments are on average 100 euros a month considering that the community does no work in the apartments except when there is a community water leak also considering that there is much more work, cleaning, painting and general maintenance in the studio and 1 bedroom apartment blocks, how come the fees are so different



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05 Jun 2009 18:08 by Roberto Star rating in Torremolinos. 3872 posts Send private message

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First of all, you have to understand that community fees are to cover the cost of maintaining and repairing community areas and services - they never include any maintainence or repairs to private individual homes, except, as you state, when for example a leaking communal pipe causes damage to an individual home.

In most communities like yours, at the agm, a total budget for the year is agreed upon, factoring in known projected costs, such as electricity, lift maintainence, insurance, cleaning, administration etc., and probably a fund for ongoing repairs and unforseen circumstances. It's possible that each of your blocks would have an individual budget, but morelikely that all four blocks are treated as one community with a common budget. The budget is worked out by the president and/or administrator, then voted on and approved at the agm, and should be included with the minutes that you received. From this, you should be able to identify exactly where the money is intended to be spent.

Each individual property within the community pays a quota, or percentage, of the overall budget. This quota is set out in your escritura (deed) by law. It is usually based on the square meterage of your property. The bigger the property, the more you pay. Basically much the same as council tax in that respect.

Hope this explains things for you. If you're really interested, you can read the Horizontal Property Law in English here. Once you've got it sussed, you'll be perfectly prepared to volunteer as the next president!



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05 Jun 2009 18:11 by Karensun Star rating in Orihuela Costa. 1476 posts Send private message

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And if you do volunteer for Presidente, the next step is the men in white coats and the asylum !!



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11 Aug 2009 16:27 by Forhotspot Star rating. 233 posts Send private message

I don't like this idea of having to pay community fees when you live in a villa with no communal pool & having to maintain your own gardens. I can understand that living in a apartment or townhouse will incur community fee as the garden& pools need to be maintained by someone & some have lifts. This is the first time I've come across in Spain not in UK or Canada.

 



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11 Aug 2009 18:47 by Roberto Star rating in Torremolinos. 3872 posts Send private message

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So what are you paying for? It must (by law) all be clearly explained in the accounts that should accompany the minutes of the AGM. The money must be used for something, so find out exactly what, and then if you dispute your contribution to any of the charges, you must bring them up at the next AGM.

I can only imagine that your property is on a private estate and that you are contributing to the upkeep of roads, street lighting etc.?



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11 Aug 2009 19:13 by Forhotspot Star rating. 233 posts Send private message

My villa won't be ready till next year. I'm told there'll be community fee but I'm not told what I'll be paying for. I was shocked when I hear about this fee. I think it's because of' urbanisation community.

I thought the street lights & road will come under propery tax. Is there any property tax which you pay annually in Spain?



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11 Aug 2009 19:52 by Roberto Star rating in Torremolinos. 3872 posts Send private message

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Yes, you will pay annual tax to the local council, known as IBI. This is based on the land value of your property. Normally roads and public lighting etc. would be covered by this, but if your urbanization has any private roads (is it gated?) then they would have to be maintained by the community. On new properties, the council often takes several years to work it out and send the first bill, then you get hit with two or three years bills at once. Welcome to Spain.

If your property forms part of a community, the developer will set up the community when the completed properties are handed over to their new owners. An initial meeting will be convened, during which the annual budget and explanation thereof will be presented, and new owners will vote on their acceptance (or otherwise) of the proposals.

Hope this helps.



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"First get your facts; then you can distort them at your leisure"

Mark Twain

 

 

 




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11 Aug 2009 20:38 by Forhotspot Star rating. 233 posts Send private message

Thanks Roberto for your explanation.

Having to pay annual tax for the roads & lights, I don't know what is this community fee that I got to pay. There're many houses already built & still some plots of land left. I don't see any gates or pools. Will have to find out what exactly I'll be paying when I go over to choose the materials.



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