Understanding Spain’s Community of Owners

What is a Community of Owners?

The community of owners of an urbanisation or building is a group formed by all the people who have a home (or property) within the same urbanisation or residential complex. This group is organised to make decisions about the common
spaces and services they share, such as gardens, swimming pools, security, lighting, cleaning, etc.

In many countries, especially in Spain (and Latin America), when you buy a house or a flat within an urbanisation, you automatically become part of this community of owners. This means that you have to collaborate with the other neighbours
to maintain and improve the common services, usually by paying a regular fee and attending (or at least participating) in meetings to make important decisions.

The community usually has a president (elected from among the neighbours), and sometimes a professional administrator, who manages the day-to-day matters.

What is the Community of Property Owners
responsible for?

The community of owners regulates and manages the common areas of the property that belong to the whole community but are not public property. As your properties are located in a private complex, the community will be responsible for the management and maintenance of the common areas, such as gardens, private roads and water and sewerage connections.

From a legal point of view, the community of owners is a hybrid legal entity. It is composed collectively of all the owners but retains most of the characteristics of a separate legal entity. This allows the community to function efficiently and to
contract services from companies for the community. The community of owners is in charge of managing everything related to the common areas and services of the development. Its main responsibilities are:

1. Maintenance of common areas

• Cleaning and repair of stairs, corridors, gardens, garages, lifts, swimming pools, etc.
• Care of the common electrical system (e.g. entrance or gateway lighting).

2. Procurement of services

• Contracting companies for cleaning, gardening, security, porterage, lift maintenance, etc.

3. Economic management

• Collect the fees paid by residents.
• Draw up an annual budget.
• Pay bills and common expenses (water, electricity, insurance, repairs, etc.).

4. Decision-making

• Organise and hold meetings to decide on building works, renovations or any other important issue for everyone.
• Approve budgets and internal rules.

5. Enforcing common standards

• Establish rules of coexistence (e.g. timetables for pool use).
• Take action if an owner does not pay his or her fee or does not comply with the rules.

6. Legal or administrative formalities

• Representing the community before the municipality, companies or in case of lawsuits.
• Manage licences or permits if common works are carried out.

In short, the community functions as a small government that looks after and organises what belongs to everyone within the development.

The community can establish additional statutes and rules for the community. These rules and statutes cannot go against the Horizontal Property Law or any other Spanish law.

In order to carry out all these tasks, the Community needs funds. To obtain these funds, the residents are charged monthly, quarterly, half-yearly or annual fees.

These fees must be paid. In the case of non-payment, you will not have the right to vote at the residents’ meetings, legal proceedings may be initiated against the debtors, and you will not be able to sell the property in the normal way, since for the sale, among others, a document issued by the Community of Owners confirming that there is no debt is required.

What are internal rules (Statutes), and how are they implemented?

In Spain, associations are regulated by the Horizontal Property Law, which determines how homeowners’ associations should be managed and how to resolve conflict situations between the residents themselves. Apart from this law, the community can establish additional statutes and rules for the community. These rules and statutes cannot go against the Horizontal Property Law or any other Spanish law. These rules are compulsory for all the neighbours, and can regulate different matters, but all of them respecting the legal limits and in relation to the Community of Owners, common areas, services, etc. Decisions in a homeowners’ association are mainly taken at the owners’ meetings, which are meetings where all the neighbours or their representatives participate.

The process works as follows:

1. Convening of the meeting

• It is convened by the chairman (or the administrator on his
  behalf).
• A notice is sent to all owners with the date, time, place and items to be discussed (this is called the “agenda”).

2. Participation

• All owners or their representatives can attend (e.g. if you
  are away, you can give a “proxy” to another neighbour).
• It is common for there to be a first call (with a minimum number of attendees) and a second call if there are not enough neighbours present at the first call.

3. Decision-making by vote
   
   Decisions are passed by vote, and the type of majority required depends on the issue. For example, for major works or new installations, a positive vote of 3/5ths (60%) of the total number of owners will be required, however, for general matters (such as cleaning or painting), only a simple majority vote of those present will be required.
   
   Each type of decision has a percentage required for validation. It is important to note that for a change in the Statutes or common elements, the unanimity of all the owners is necessary. Each neighbour will vote with respect to the property/s he/she owns, the participation coefficient is also taken into account, which is a percentage that each flat has according to its size. It is not only the number of votes that matters, but the total value they represent.
   
   
4. Drafting of the minutes
   
   At the end of the meeting, minutes (an official summary of what was agreed) are written.
   
   The minutes are sent to all owners, and what is approved is binding on all, even those who did not attend. If an owner disagrees with a decision, he/she can challenge it (take it to court), but only in certain cases, such as if he/she was not properly summoned or if the decision is illegal or prejudicial.

When are Community of Property Owners
meetings held and what are the
requirements to be followed?

The meetings of the Communities of Property Owners can be held in two different ways.

On the one hand, we have the Ordinary Meetings. This meeting is compulsory, and must be held once a year. They are normally held to approve the previous year’s
accounts, approve the budget for the new year, elect or renew the president and other officers, and deal with maintenance or improvement issues.

On the other hand, we have the Extraordinary Meetings. These will be held when deemed necessary by the president, administrator, or a group of owners representing at least 25% of the participation quotas of the building or urbanisation. These meetings usually deal with issues such as the approval of urgent works, coexistence problems, important changes in internal rules or unforeseen repairs or extra budgets. In order to convene the Junta (residents’ meeting), the minimum notice period is 6 days prior to the meeting.

The notice of the meeting has minimum content standards.
It must at least appear in the notice of meeting:

• To date and time of the meeting.
• Location (normally this will be in the building or development)
• Agenda. These are the list of items to be discussed at the meeting. Each neighbour may propose an item prior to the meeting at least 6 days before the meeting.
• Signature of the chairman or the administrator convening the meeting.
• Information on proxy voting possibilities.

Can the Community of Owners limit tourist
rentals?

In order to be able to carry out tourist rentals, it is necessary to have a tourist licence, and that this activity is not prohibited by the community of owners.

In order to apply for the tourist licence, it is necessary for everything to be in order that the property has a Licence of First Occupation (LPO), and this is a requirement for this procedure.

As to whether or not this activity is prohibited by the community of owners, this is something that can be limited or prohibited by a meeting of the Community of Owners. In the case of not being allowed by the Statutes or by internal vote , it will not be possible to obtain the tourist rental licence even if all the documentation is in order.

Note that this can change if 3/5 of the neighbours so decide at a general meeting, so it can change at any time for better or worse.

The tourist rental activity could be limited by agreement of the community, in accordance with article 17.12 of the LPH (Horizontal Property Law).

In practice, we are aware of some properties in the different blocks included in the community of owners that are being used for tourist rentals, even with the corresponding licence required by law. However, all of them run the risk of the Community of Owners requesting them to cease this activity, with the corresponding legal and economic consequences of being reported to the Regional Administration for carrying out a prohibited activity.

Regardless of whether or not there is a limitation on the part of the Community of Owners, in order to be able to use the property for tourist rental, it is necessary to obtain the corresponding regional or local administrative authorisations and licences.

From a legal point of view, when the bylaws or regulations include a generic prohibition of commercial activity in the properties, the Supreme Court, in judgments of 27 and 29 November 2023, considers that the tourist rental activity is commercial and, therefore, would be covered by such prohibition, so that the community of owners would be empowered to order the cessation of such activity.

In addition, as of 3 April 2025, the Horizontal Property Law (LPH) in Spain allows homeowners’ associations to regulate or even prohibit tourist rentals in their buildings. In order to convert a property into a tourist flat, the express approval of the community will be required, with at least 60% of the votes in favour.

A new requirement for a tourist rental licence points to a document from the COP justifying that there is no prohibition and that the person himself has “permission” to obtain the licence and carry out tourist rentals.

This law is very new, and it remains to be seen how this will play out in practice.

In principle, it will depend very much on each administration or CP how this issue is to be managed.

Who is the president? How do I contact
them?

The president is elected at the Juntas (Community of owners/neighbourhood meetings). The normal term of office is one year, which can be extended if both the residents and the president wish to continue in office.

The president is not remunerated.
In the event that several neighbours offer themselves as chairperson, the remaining neighbours shall vote to elect the chairperson. In the event that no neighbour offers to be the chairperson, the chairperson shall be drawn by lot among the neighbours.

Each Community of Proprietors has an email address, and a telephone number assigned for neighbours to contact. Normally these contact details will be for the administrator of the community and not the president, although often, as the president is a neighbour, it is common to go directly to him/her.

The administrator or president normally sends mails to the neighbours, but in the case of not having the contact, this information is usually posted on the bulletin boards of the building or urbanisation.

Important documents for the sale?

At the time of signing the deed of sale, the seller is obliged to provide a certificate from the director/president of the community of owners certifying that the properties are up to date with the payment of the fees. This document is essential.
On the other hand, it is common for the buyer to ask for the last two Minutes, the Articles of Association, and information regarding the Community of Owners (such as contact details, fees to be paid, information on whether there are any extra fees
or any prohibition of tourist rentals, etc.).

Therefore, it is always important to have the contact, and to be aware that this figure is important for all aspects of owning a property in Spain, even when it comes to selling.

You can read the original article in Ideal Home 2025

If you have any questions or require legal assistance with matters relating to the Community of Owners, sales, purchases, tax payments or any other legal assistance related to properties, we recommend that you contact a solicitor.

In this regard, we would like to remind you that Vogt Advokatfirma España is a law firm based in Marbella since 1999, with expertise in these matters.