How a community of owners (comunidad de propietarios, also called comunidad de vecinos) is set up: from the founding deed to the first meeting, the tax number (NIF) and the minute book.
A building with flats or premises belonging to different owners and common elements is governed by the Horizontal Property Act (Ley de Propiedad Horizontal). Setting up the owners’ community (comunidad de propietarios) allows it to take decisions and collect fees; without it, disputes are almost certain.
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1. The founding deed
It divides the building under the horizontal property regime. It is granted by the sole owner (normally the developer) or by all the owners by mutual agreement, in a public deed before a notary, and is registered at the Land Registry (Registro de la Propiedad). It assigns each flat or premises its participation share (cuota de participación) (Article 5 of the Horizontal Property Act).
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2. The statutes
They are optional, but highly advisable: they set rules on the use of the common elements, how costs are shared or the activities allowed in the flats. If they are registered at the Land Registry, they also bind future buyers.
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Common mistakes
Miscalculated shares, statutes that are later disputed or meetings called improperly. Changing the deed or the statutes requires, in general, unanimity. If the building is a new build, the first occupation licence will have to be completed first. A planning lawyer or a horizontal property lawyer can review them before they are signed.
3. The first owners' meeting
Once the flats have been handed over (or if the building already exists), it is called in order to:
Appoint the president (a compulsory post held by one of the owners), the secretary and, if wished, a property administrator (administrador de fincas).
Approve the budget of costs and each owner’s fees.
Set up the reserve fund, which cannot be less than 10% of the last ordinary budget.
After the first meeting
NIF, minute book and bank account
Once the first meeting has been held, four steps remain before the community can operate.
Tax number (NIF): requested from the Spanish Tax Agency (Agencia Tributaria) with the minutes of the founding meeting and the appointment of the president; it begins with H.
Minute book (libro de actas): it must be officially stamped by the Land Registry before you start using it.
Bank account in the community's name to collect fees and pay costs.
Insurance and common services: building insurance, cleaning, lift maintenance, electricity for the common areas.
Planning law
Other planning procedures
Licences, first occupation and owners' communities.
New build or existing building, and what is missing: deed, statutes or first meeting.
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Frequently asked questions
Questions about setting up a community of owners
Is it compulsory to set up a community of owners?
The Horizontal Property Act (Ley de Propiedad Horizontal) applies even if it is not set up, but to operate (NIF, bank account, contracts, insurance) the community needs to be set up, appoint a president and keep a minute book.
Who draws up the founding deed?
Normally the developer, before selling the flats, in the deed of declaration of new build and horizontal division (declaración de obra nueva y división horizontal). If there isn't one, all the owners can grant it before a notary.
How are participation shares calculated?
According to the usable floor area of each flat or premises compared with the building as a whole, its location, its position and the foreseeable use of the common elements. Changing them requires, in general, unanimity.
How do you apply for the NIF of a community of owners?
At the Spanish Tax Agency (Agencia Tributaria), with the relevant census registration form (modelo censal) and a copy of the minutes in which the community is set up and the president is appointed.
Is a property administrator needed?
It isn't compulsory: the president or the secretary can take on those duties. Even so, in buildings with many owners or common services it is usually worth having one.
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