Spain Explained

Community of owners in Spain – checking up on payments

Last updated on September 13th, 2019 at 09:10 am.

How are you at book-keeping? People might fall into three book-keeping categories following a request for an invoice:

Category 1 answer:  ‘Here is the invoice for the 31st December 2010’

Category 2 answer:  ‘I had an invoice somewhere for that’

Category 3 answer:  ‘What’s an invoice?’

Some people are just better organisers than others. Hopefully if you belong to a community of owners in Spain, then your administrator falls into our first book-keeping category. In this article I’ll explain why.  

Community ups and downs

Belonging to a community of owners has its benefits. Sharing a community facility like a swimming pool means that you have the benefit of this luxury without all the hassle of its day-to-day upkeep.   

The downside is that, like all groups of people, communities can struggle to get along. At times of austerity, it can be particularly difficult for them to bring in community fees on time from everyone. There can be serious disagreements about how the community is run and rules can seem arbitrary and rigid.

One of the chores for communities in Spain is that they must organise the work needed to keep the community running efficiently. This involves regular input to keep the swimming pool well-maintained, the stairwells clean and tidy and the grounds maintained.

On occasions it can also involve one-off, bigger works such as repairs and improvements. You might recall that quite recently there was a limit placed on cash payments of more than 2,500€. At the time, people were sceptical about the ways in which this might be monitored. Now, we know a little more.

Checking up on cash payments

According to ‘hot off the press’ information released by the Spanish Tax Authority, one way in which they are going to be checking on this rule is by visiting communities of owners and asking to see their records. They will want to check how service providers such as plumbers, carpenters, painters, security firms and administrators are being paid.

Hopefully your community has been implementing the new regulations efficiently and has the records to prove it. If not, you could find you are not only sharing out the costs of having these services in the first place but the cost of fines as well.

The Spanish Tax Authority are calling this kind of check, ‘The pursuit of tax fraud on foot’. It’s not only communities they will be visiting but weddings, fiestas and other events to check that the correct procedures have been followed.   

According to figures released by the Spanish Tax Authority, the number of visits that the tax man made in 2012 was 20,446 compared to 11,964 in 2011. We have been informed that a similar increase in visits will take place this year too. So, all those within a community, for better or worse, make sure the books are in order and your own personal and property taxes in Spain are up-to-date.  The taxman is out on the beat.

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6 comments

W. Ferrie

21 March, 2022 7:49 pm

What is the minimum number of owners in a community required to call for the community accounts to be independently audited?

Oscar Paoli

22 March, 2022 8:55 pm

Hi,

If the audit involves an expense for the community, it must be approved by a majority vote at the meeting.

With kind regards,

Ábaco Advisers

William Ferrie

9 July, 2022 2:25 pm

Can we force our community president and administrator to get the accounts independently audited?
If “YES “ then how?

Oscar Paoli

11 July, 2022 5:09 pm

Yes, it can be arranged and you will have to get it agreed at the meeting as long as sufficient votes are obtained, usually a majority, but it will depend on your community regulations.
Wishing you best of luck.
With kind regards,
Ábaco Advisers

Aileen O’Reilly

5 October, 2024 2:33 pm

What can I do about an administrator who has not called an AGM since I bought my property in 2019 and the last and only annual financial statement was for 2019-2020 using the COVID 19 pandemic as excuse for not calling AGM. I have requested financial statements by email and in person on numerous occasions to no avail. When I call to the office I’m told they don’t have them and when they ask their boss (the actual administrator) he doesn’t give them the information. I’ve also asked for the name email address and telephone of the President but have been refused this information also. I would appreciate some advise on the matter of where or to whom I can report this ongoing matter. Thanks in advance

Oscar Paoli

8 October, 2024 10:28 pm

Thank you for your message.

It sounds like a frustrating situation. Administrators are legally required to hold Annual General Meetings (AGMs) and provide financial statements to property owners. The excuse of the COVID-19 pandemic is no longer valid for delaying AGMs, and you have a right to access this information.

Here are a few steps you can take:

Request in Writing: Send a formal request to the administrator via certified mail (burofax in Spain) outlining your request for financial statements and the calling of an AGM. Make sure to keep copies of the communication.

Contact the Property President: Although they’ve refused to provide the contact information for the president, this is something they are required to do. You may ask again in writing (via burofax), and if they refuse, this can be reported as a breach of transparency.

Denounce the Administrator: You can file a formal complaint with the Association of Property Administrators (“Colegio de Administradores de Fincas”) if the administrator is part of this professional body. They are responsible for regulating their members and can take disciplinary action.

Seek Legal Advice: If you continue to face roadblocks, it might be worthwhile to consult with a lawyer specializing in property law. They can assist in taking formal legal action to compel the administrator to comply with their obligations.

Please let us know if you’d like assistance with any of these steps or require further clarification.

Best regards,

Ábaco Advisers