If you are buying an apartment, townhouse in a private urbanisation, or any unit within a shared building in Spain, you will be governed by the Ley de Propiedad Horizontal (LPH) — Spain's Horizontal Property Law. This legislation, originally enacted in 1960 and substantially reformed in 2019 and 2022, regulates everything from monthly community fees and shared area maintenance to voting rights at community meetings and the rules around tourist rentals.
Many foreign buyers — including NLV holders purchasing their Spanish home — encounter the LPH for the first time at the notary when completing their purchase. By then, critical decisions have already been made: the community statutes are fixed, pending fees may already be owed, and community resolutions passed months earlier are now binding on the new owner. Understanding the LPH before you sign is one of the most valuable things any prospective buyer can do.
What is the Ley de Propiedad Horizontal?
The LPH applies whenever a building is divided into individually owned units — called elementos privativos — that share common elements such as the structure, roof, staircases, lifts, gardens, pools, or perimeter walls. Every flat in an apartment block falls under it, as does every townhouse in a gated community with shared amenities.
The moment a building has more than one owner sharing common elements, a comunidad de propietarios (community of owners) comes into existence by operation of law. Membership is not optional. When you purchase a unit, you automatically become a member of that community, inheriting its rules, its obligations, and — critically — any existing or historic financial liabilities within the legally defined period.
The LPH draws a fundamental distinction between your private unit (which you alone decide about) and the common elements (which are decided collectively through the community). You cannot, for example, alter the facade of your apartment, install a satellite dish on the roof, or modify a shared terrace without community approval — even if these elements are adjacent to or exclusively used by your unit.
The Comunidad de Propietarios: How It Is Structured
Every comunidad de propietarios has a defined governance structure under the LPH:
The President (Presidente)
The president is elected from among the owners and serves as the community's legal representative. The presidency typically rotates annually among owners, often in alphabetical or unit-number order. Foreign owners can and do serve as president — Spanish nationality is not required, only ownership of a unit. Non-resident owners who cannot physically attend can grant a notarised power of attorney to a representative to fulfil the presidential duties during their term.
The Administrator (Administrador de Fincas)
Most functioning communities appoint a professional administrador de fincas — a licensed property administrator who manages day-to-day operations: collecting fees, paying suppliers, preparing accounts, calling meetings, and maintaining records. In regulated regions, administrators must be members of their regional professional college. The cost is typically shared pro-rata among all owners as part of the community budget.
The Secretary
The secretary prepares and signs meeting minutes and issues official certificates of community decisions. In smaller communities, the administrator often combines the secretary role. The secretary's signature on debt certificates is legally significant — it is required for formal debt collection procedures and for the certificate of no arrears at the time of property sale.
Community Meetings and Voting Rights
The LPH requires at least one ordinary general meeting per year, called by the president with a minimum six days' advance notice sent to all registered owner addresses. Extraordinary meetings can be called at any time by the president or by owners representing at least 25% of the community's participation quotas.
Attendance by proxy is permitted. If you are not in Spain when a meeting is called — which will frequently be the case for NLV holders spending time abroad or for non-resident property investors — you can sign a written authorisation naming any person as your proxy. That person carries your vote in full. There is no restriction on who can be proxy: it can be your property manager, a neighbour, or your Spanish lawyer.
Different decisions require different voting thresholds:
- Simple majority (of owners present and their quotas): Annual budget approval, ordinary maintenance decisions, appointment of the administrator.
- Simple majority of all owners and quotas (including absent owners counted as votes in favour if they do not object within 30 days of notification): Energy efficiency and renewable energy installations since Law 10/2022.
- Three-fifths of all owners representing three-fifths of quotas: Limiting or banning short-term tourist rentals (Article 17.12 LPH); installing a lift where none previously existed.
- Unanimity: Modifying the community statutes; changing participation coefficients.
Community Fees: What You Pay and Why
Your financial contribution to the community is determined by your coeficiente de participación — a percentage share fixed in the original deed of horizontal division (escritura de división horizontal) that created the building. This coefficient reflects your unit's proportional share of the building, typically based on floor area. You inherit it when you buy and cannot change it without unanimous community consent.
Ordinary Monthly Fees (Cuotas Ordinarias)
Your monthly community fee covers the ongoing expenses approved at the annual meeting: the administrator's fee, cleaning of common areas, lift maintenance, garden upkeep, pool operation, building insurance, and any other recurring costs. Typical monthly fees vary enormously:
- A modest apartment in a building with lift and porter in Madrid city centre: €80–180/month
- A coastal urbanisation with pool, garden, and communal parking (Costa del Sol, Costa Blanca): €150–400/month
- A premium resort-style community in Marbella or Ibiza with concierge, multiple pools, and 24-hour security: €500–800/month or more
One-Off Levies (Derramas)
When a major unexpected expenditure arises — roof replacement, lift motor failure, structural repair, damp remediation — the community votes a derrama: a one-off levy spread among owners according to their participation coefficients. Derramas can be substantial. A lift replacement in a mid-sized building might generate a derrama of €1,000–3,000 per flat; a full facade renovation or structural repair can run to €10,000–20,000 per unit in larger buildings.
Critical for buyers: A derrama approved at a community meeting before you complete your purchase is legally owed by the property — not the previous owner personally. If the previous owner did not disclose a pending derrama, you may discover it on your first post-purchase community statement. This is why reviewing the last two years of community meeting minutes before signing is essential.
The Reserve Fund
Following the reform introduced by Real Decreto-Ley 7/2019, communities are legally required to maintain a reserve fund of at least 10% of the latest ordinary annual budget (Article 9.1.f LPH). This fund covers unforeseen maintenance needs and, since Law 10/2022, can also be used for accessibility and energy efficiency improvements. Communities with reserve funds below this threshold are in breach of the LPH.
What Happens If You Don't Pay Community Fees
Non-payment of community fees in Spain carries serious consequences for the debtor owner. The LPH provides communities with a fast-track collection mechanism under Article 21: the procedimiento monitorio.
The process works as follows: the community certifies the debt at a meeting, the administrator sends formal demand to the debtor, and if payment is not made within the deadline the community files a streamlined court claim requiring no full trial for sums below €250,000. Once a court order is obtained, the community can attach the debtor's rental income, bank accounts, or ultimately request auction of the property itself to satisfy the debt.
While the property is being pursued, the debtor owner loses their right to vote at community meetings. They can still attend and speak, but their vote is disqualified until the arrears are cleared.
Perhaps more important for buyers: under Article 9.1.e LPH, the new owner of a property is jointly liable with the previous owner for community debts corresponding to the current annual instalment plus the three preceding calendar years. If you purchase a property whose previous owner accumulated three years of unpaid fees, that debt travels with the property to you. The only protection is the certificado de estar al corriente de pagos — the certificate of no arrears — which must be produced by the seller and verified by your lawyer before you complete.
Your Rights and Obligations as an Owner
As a member of the comunidad de propietarios, you have both rights and obligations under the LPH.
Your Rights
- Vote at community meetings (or by proxy) on all matters affecting the community.
- Request an extraordinary meeting by gathering signatures from owners representing 25% of quotas.
- Receive copies of the annual accounts, meeting minutes, and community statutes.
- Challenge community resolutions that violate the law or the statutes within three months (one year for resolutions contrary to law or statutes).
- Use common elements in the manner established by the statutes and internal regulations.
- Be compensated for damage caused to your unit by other owners or by failures in common elements.
Your Obligations
- Pay your community fees on time, including your share of any approved derramas.
- Maintain your private unit in good condition so as not to cause damage to other units or common elements.
- Allow community workers access to your unit when necessary for essential maintenance or repair to common elements or adjacent units (with reasonable notice).
- Comply with the community statutes and internal regulations regarding use of the property (noise hours, pet rules, parking, etc.).
- Notify the president of your registered address for the purpose of receiving community communications.
Tourist Rentals and the Three-Fifths Vote
Since Real Decreto-Ley 7/2019 introduced Article 17.12 into the LPH, communities of owners have had the power to limit, condition, or prohibit short-term tourist rentals within the building by a vote of three-fifths of all owners representing three-fifths of the participation quotas. This rule significantly changed the landscape for Airbnb-style investment in Spanish apartment buildings.
Important nuances you must understand:
- A prohibition passed under Article 17.12 applies going forward and binds new owners who complete their purchase after the resolution. If you buy knowing the restriction is in place, you are bound by it.
- Owners who held an active, compliant tourist rental licence at the time the resolution was passed generally retain their pre-existing rights — the prohibition cannot retroactively strip an operating licensed business.
- A community resolution is not a substitute for the regional tourist licence. Even if the community permits tourist rentals, you still need the autonomous community's licence to operate legally. And even if you hold a valid licence, a subsequent community prohibition (if you were not already operating) will block you from using it.
- Communities can also impose financial conditions short of prohibition — for example, requiring owners who run tourist rentals to pay an additional contribution to community expenses to offset higher wear on common areas and lifts.
If you are purchasing a property with the intention of running it as a tourist rental, your property lawyer must review the community statutes and the minutes of the last two annual meetings before you commit. A prohibition can be hidden in a meeting minute rather than the statutes themselves.
Handling Disputes Within the Community
Community disputes in Spain range from minor disagreements about noise and parking to significant conflicts over major works decisions or alleged mismanagement of funds. The LPH provides a framework for challenging community resolutions you believe are unlawful or unjust.
Challenging a Community Resolution
Under Article 18 LPH, any owner can challenge a community resolution in court if it:
- Violates the provisions of the LPH
- Violates the community statutes
- Is seriously harmful to the community or one of its members
- Imposes an unjustified burden on one or more owners
The deadline to file a challenge is three months from the date of the meeting (or from the date absent owners were notified), extended to one year for resolutions that are contrary to law or the statutes. To have standing to challenge, you must be up to date with your community payments at the time of filing, or have formally deposited the disputed sums with the court.
Mediation and Negotiation
For disputes that do not involve a formal resolution challenge, mediation through a registered mediator or through the community's administrator is often the most practical route. Many disputes about noise, shared element use, or minor damage claims can be resolved without litigation if addressed promptly and through the correct channels.
What to Check Before You Buy: The Pre-Purchase Due Diligence Checklist
For any NLV holder or property investor buying into a Spanish comunidad de propietarios, the following documents should be reviewed by your lawyer before you commit:
- Certificate of no arrears (certificado de estar al corriente): Confirms the seller owes nothing to the community. Essential — do not waive it.
- Community statutes: Reveals any restrictions on use, pet rules, tourist rental prohibitions, and any other binding conditions that will affect you as owner.
- Last two years of meeting minutes (actas): Shows pending derramas approved but not yet billed, any current disputes, the state of the reserve fund, and any resolutions affecting your intended use of the property.
- Current community budget: Confirms your monthly fee and how it is calculated.
- Certificate of the community's reserve fund balance: Confirms the fund is at or above the legal 10% minimum.
- Internal regulations (normas de régimen interno): Covers day-to-day rules that may affect your lifestyle — noise curfews, pool hours, parking allocation, rubbish rules.
A property lawyer who specialises in Spanish conveyancing will obtain and review all of these documents as a matter of course. If your estate agent is handling the purchase without independent legal representation, you are taking an avoidable risk.