Homeowners across Spain, including in the Canary Islands, could now avoid paying years of old community fees thanks to a major ruling by Spain’s Supreme Court, which has confirmed that unpaid community debts expire after five years if no legal action has been taken.

The decision is expected to have a significant impact on disputes between property owners and communities, particularly in apartment complexes and urbanisations where unpaid annual fees often become a source of tension.

Under the new legal interpretation, communities of owners can no longer pursue indefinitely old debts for unpaid monthly fees or extraordinary charges if they failed to formally claim the money within five years.

Five-year limit now clearly established

Previously, many communities relied on an older legal framework that allowed them up to 15 years to pursue unpaid charges through the courts. However, following reforms to Spain’s Civil Code and the latest Supreme Court ruling, that period has now been reduced to five years.

This means that any unpaid community fees older than five years are considered legally time-barred unless the debt was formally claimed beforehand through measures such as:

• A registered burofax letter
• A notarial demand
• Court proceedings

If none of these steps were taken within the five-year period, the homeowner may no longer be legally obliged to pay the debt.

Madrid case set the precedent

The ruling stems from a real legal dispute in Madrid, where a community of owners attempted to recover €6,497 in unpaid fees accumulated between 2007 and 2014.

The homeowners challenged the claim using the updated law introduced under Law 42/2015, arguing that much of the debt had already expired legally.

The court ultimately agreed in part, reducing the amount owed by around 70%. Instead of paying the full sum, the residents were ordered to pay only €1,696 relating to the most recent valid charges, while roughly €4,800 of older debt was cancelled due to prescription rules.

What the law says

Article 9 of Spain’s Horizontal Property Law still makes it compulsory for homeowners to contribute towards communal expenses, including:

• Lift maintenance
• Building insurance
• Cleaning
• Shared electricity
• Structural repairs
• General upkeep of communal areas including pools

However, the Supreme Court has made clear that communities must act promptly when residents stop paying. Each unpaid monthly fee begins its own five-year countdown from the moment payment becomes due.

Homeowners must still defend themselves

One important detail highlighted by legal experts is that expired debts are not automatically cancelled by the courts.

If a residents’ association files a legal claim for debts older than five years, the homeowner must actively raise the prescription defence during court proceedings. If they fail to do so, a judge could still order full payment of the debt.

The ruling is now being seen as a wake-up call for communities of owners across Spain, including many residential complexes in the Canary Islands, where delayed debt collection could leave associations unable to recover substantial sums.

Experts are advising communities to begin legal recovery procedures much earlier to avoid debts becoming permanently uncollectable.