IBI, community fees and utilities when selling: what buyers will ask

When a buyer interested in a property in La Zenia, Cabo Roig or Playa Flamenca decides to move forward, their solicitor or estate agent requests three documents before drafting any formal offer: the last paid IBI (council tax) receipt, a certificate of no debts from the residents' association, and confirmation that the utilities are up to date. These are not administrative formalities. In some cases the notary requires them before authorising the escritura (title deed); in all cases, their absence gives the buyer concrete grounds to renegotiate the price or delay the closing. Having them ready before the first serious viewing can cut the closing timeline by two to three weeks.

IBI: the first document every buyer requests

The IBI (Impuesto sobre Bienes Inmuebles) is an annual local property tax based on the cadastral value of the property. In Costa Blanca Sur municipalities, the rate ranges from 0.4% to 1.1% of the cadastral value. For a property with a cadastral value of €120,000 in Orihuela, the municipality covering Orihuela Costa, La Zenia, Punta Prima, Playa Flamenca, Villamartín and Zeniamar, the annual IBI typically falls between €600 and €900.

The reason buyers request it goes beyond checking that payments are current: unpaid IBI bills from the previous four years can be enforced against the property even after the sale. A buyer who signs without checking may inherit that debt directly. For this reason the buyer's solicitor always reviews it, and the notary may require it before authorising the deed.

On apportioning IBI in the year of sale: standard practice on the Costa Blanca is to split the annual amount between buyer and seller in proportion to the days each party holds the property. There is no strict legal obligation to do so, but most contratos de arras set this out explicitly. If the current year's bill is already paid in full, the buyer reimburses the seller's share at the notary appointment; if it has not yet been paid, the amount is retained by the notary.

How to obtain the last receipt or regularise your situation:

• If you paid by direct debit, your bank holds the payment confirmation.
• If you paid at the counter, Orihuela Council issues a duplicate on the spot or through its online portal.
• If there are several years of unpaid bills, regularisation involves the principal plus a 20% late-payment surcharge and can take two to six weeks.
• If the property is in another municipality such as Torrevieja or Santa Pola, the process is similar but surcharge rates may differ.

In our experience since 1988, the most common issue for non-resident sellers is that IBI notices stopped arriving by post and debts accumulated unnoticed. Catching this before listing prevents blockages at the final stage of the sale, when the buyer already has a solicitor and is impatient to proceed.

Residents' association: the certificate of no debts

Debts owed to the residents' association (comunidad de propietarios) follow the property, not the seller. Article 9.1.e of Spain's Horizontal Property Act makes the buyer subsidiarily liable for unpaid fees from the current year and the three previous years. This is not a theoretical warning or a negotiable clause: the notary may refuse to authorise the escritura without the certificate.

What is the certificate of no debts?

It is a document issued by the property manager (administrador de fincas) or the association's president confirming that all ordinary fees and approved special assessments (derramas) are paid in full. Standard turnaround is 7 calendar days from the request, though larger communities may take up to 15 days. In most developments across Villamartín, Zeniamar or Cabo Roig the certificate is free; some managers charge between €30 and €60. It is the least expensive document in the process and there is no reason to delay requesting it.

What happens if there are outstanding debts?

If the certificate shows unpaid fees, there are three standard ways to resolve the matter before signing the escritura:

1. The seller pays the full outstanding amount before the notary appointment.
2. The notary withholds part of the purchase price at completion to settle the outstanding balance.
3. The buyer accepts the debt and it is deducted from the agreed sale price.

In many developments in the area where monthly fees run between €80 and €200, letting 12 to 18 months of payments lapse means debts of between €1,000 and €3,600. Left unresolved before the contrato de arras, this can delay or derail the transaction entirely. We have managed over 5,000 transactions and this is one of the most frequent points of delay when it is not addressed in advance.

Utilities: water, electricity and gas

The contrato de arras typically includes a clause in which the seller confirms that utilities are current and that the contracts can be transferred. A well-advised buyer will request the latest paid receipts before signing. The most common problems with non-resident-owned properties that have been empty for months or years:

• Electricity contract cancelled due to non-payment or at the previous owner's request: reconnecting can take 7 to 21 working days and requires an electrical installation inspection if supply has been absent for more than two years.
• Outstanding water debt with Hidrogea (water supplier in Orihuela Costa): if there is an unpaid bill, the new owner may find the supply cut off after completion.
• Gas supply suspended due to a missed mandatory periodic inspection: restoring it requires a technical inspection and can take up to four weeks.
• Heating oil or other fuel installations: these do not create transferable debts, but the seller should confirm their condition before signing.

Providing the latest electricity and water receipts is not a notarial requirement in most cases, but their absence gives a buyer a concrete reason to renegotiate the price or request an additional retention at completion until the contracts are sorted. In Punta Prima and other parts of Orihuela Costa with high concentrations of non-resident owners, this issue comes up in roughly one in three transactions we handle.

Summary table: documents, who requests them, timeline and cost

ItemWho requests itTime to obtainCost / implication if in arrearsLast paid IBI receiptBuyer's solicitor / notaryImmediate (if direct debit) or 1–5 working daysDebt enforceable against property for up to 4 years; 20% late surchargeCertificate of no community debtsNotary (required in deed)7–15 calendar daysBuyer liable for up to 3 years of unpaid fees; certificate costs €0–€60Water bill (Hidrogea) up to dateBuyer's solicitor / buyerImmediate (paper receipt or app)Debt follows the property; supply cut until regularisedElectricity bill up to date or active contractBuyer's solicitor / buyerImmediate if active; 7–21 working days to reconnectNo active contract: delay in using the property after completionGas contract status (if applicable)BuyerImmediate if in order; up to 4 weeks if inspection requiredSupply cut until mandatory technical inspection is passed

When to prepare each document

The same pattern of delays repeats itself transaction after transaction: the seller does not have these documents ready when the first serious offer arrives, and the 15 to 30 days it takes to obtain them are enough for the buyer to lose interest or find another property. The order we recommend to every owner who entrusts us with their sale:

1. Before listing the property: check your IBI status with Orihuela Council or via the relevant municipal online portal.
2. As soon as you have a serious verbal offer: request the certificate of no debts from the residents' association or property manager.
3. If the property has been empty for more than three months: check the status of water, electricity and gas contracts and address any issues.
4. Before signing the contrato de arras: clear any outstanding debts or agree a retention mechanism with the other party at the notary.

If you own a property in La Zenia, Cabo Roig, Playa Flamenca, Punta Prima or elsewhere on Orihuela Costa and want a clear picture of your recurring costs before listing, call us on +34 965 714 362 or write to info@bennecke.com. We have been helping property owners prepare their paperwork correctly since 1988, preventing the same delays from repeating sale after sale.