Horizontal Property Law in Spain: Main Features and Rules

In Spain, many residential properties are part of a shared legal structure that regulates how buildings, complexes, and communities operate. This structure is known as Horizontal Property, and it is governed by the Ley de Propiedad Horizontal (LPH), commonly known as the Horizontal Property Act.

These properties refer to a legal regime where individual owners hold full ownership over their private units while sharing ownership of common elements. These shared elements include staircases, lifts, roofs, façades, gardens, swimming pools, parking areas, and access roads. This form of ownership is established through horizontal division, which legally separates a building into independent units.

Because of this structure, financial responsibilities and the property ownership rules in Spain are closely interconnected. Spain’s Horizontal Property Law determines how decisions are made, how costs are distributed, and how conflicts are resolved. The Law of Horizontal Property in Spain also regulates sensitive matters such as renovations, noise, and rental activities.

In this guide, we will analyze Spanish property ownership laws, with a particular focus on horizontal properties, to guide buyers, investors, and landlords through a smooth transaction. As part of this, you will find the Ley de Propiedad Horizontal explained in detail as well.

What Are the Core Principles of Horizontal Property Law for Homeowners in Spain?

To have the Horizontal Property Act in Spain explained, we must first understand the core principles of these properties. As we have stated above, the law is built on shared ownership balanced with individual rights. It establishes how private units and common elements coexist under one legal regime. Below are the elements that define this system:

1. Individual Ownership and Shared Elements

Each owner holds full ownership of their private unit, such as an apartment, townhouse, or commercial space. At the same time, they automatically own a proportional share of the common elements. This shared ownership arises from the Horizontal Division Deed (Escritura de División Horizontal), which legally defines the boundaries of each unit and the shared areas. The ownership share attached to each unit is inseparable from the property.

Therefore, without this document, these properties:

• Cannot obtain independent title deeds,
• Cannot be sold or transferred as separate units,
• May face legal and financial limitations.

So if you are asking “where does the Horizontal Property Law apply?”, we can say that the Horizontal Property Law applies wherever multiple owners share common elements within the same development. This includes apartment buildings, residential complexes, and gated communities, even when individual homes appear independent. It also applies to mixed-use developments that combine residential and commercial units.

In all cases, the legal framework only becomes effective once the horizontal division is registered in the Land Registry. Without this registration, individual units lack full legal recognition. If you are considering registering a horizontal property in Spain, you will find how to create the horizontal division deed explained in one of the following sections, once the core elements are explained.

2. Democratic Community Governance

The governance of the communities operates through a democratic system. Owners vote in general meetings, and decisions are taken based on legally defined majorities. This structure allows communities to manage maintenance, budgets, and coexistence rules collectively.

3. Owner Obligations

Horizontal Property Law in Spain clearly defines the responsibilities of property owners. These include properly maintaining private units, respecting common elements, allowing access for essential repairs, and paying community fees on time. There are also some owner obligations under the LPH. Owners must contribute to the reserve fund, which must equal at least 5% of the community’s annual budget.

4. Flexibility Within Legal Limits

Communities may adopt internal rules to regulate coexistence, the use of shared facilities, and daily operations. These rules must comply with the law and cannot override registered statutes or the master deed. Therefore, we can say that the flexibility exists, but legal boundaries remain firm, especially when restrictions affect ownership rights or permitted uses.

How to Create a Horizontal Division Deed in Spain?

The process involves preparing a notarial deed based on approved architectural plans and obtaining any required municipal authorizations. When you are done, you must visit the Land Registry for horizontal division in Spain, where the deed is officially registered and each unit is granted independent legal status. Once the horizontal division deed is registered in the Land Registry, each unit gains independent legal status and can be sold, mortgaged, or transferred separately.

What Does the Horizontal Property Law Cover?

In practice, the Horizontal Property Law covers five main areas: ownership structure, community governance, decision-making rules, property use restrictions, and financial management and enforcement mechanisms. The law develops Article 396 of the Spanish Civil Code and establishes horizontal property as a special ownership regime for buildings divided into independent units through a horizontal division.

To ensure proper administration and legal representation, every horizontal property community must have governing bodies responsible for managing daily operations and compliance with the law. These governing bodies include:

• General Assembly of Owners: The main decision-making body of the community
• President: The legal representative of the community
• Vice President: The optional role that supports the president when necessary
• Secretary: Responsible for recordkeeping and official communications
• Administrator: Responsible for overseeing finances, maintenance, and day-to-day operations

Note: Unless the community statutes provide otherwise, these roles may be held by property owners themselves or by external professionals appointed by the community.

Under the Multi-Unit Buildings Property Law in Spain, voting rules depend on the type of decision being made. Everyday management decisions are approved by a simple majority of owners. More significant decisions, such as structural changes or changes in how a property is used, require a three-fifths (3/5) majority. In other words, any change that affects the master deed or ownership shares must be approved by all owners.

These voting rules become especially important when communities are limiting how properties are used, changing shared areas, or banning tourist rentals under LPH. Speaking of which, since April 3, 2025, some changes to the Horizontal Property Law in Spain made the rules about tourist rentals clearer. Now, communities can legally control or ban tourist rentals in their buildings or residential complexes according to the new Horizontal Property Law in Spain in 2025.

Under the Horizontal Property Law for tourist rentals in Spain, property owners who wish to operate short-term rentals must first obtain approval from the community through a three-fifths (3/5) majority vote. Additionally, communities may charge an extra fee of up to 20% on tourist rental units to cover the increased use and wear of shared facilities.

In terms of financial management, the expense distribution under the Horizontal Property Law requires communities to approve annual budgets, set community fees, and manage shared expenses collectively. If an owner fails to meet their payments, the community can record the debt and take legal action.

How Is the Expense Distribution Calculated in Horizontal Properties?

The cuota de participación, which can be translated as “expense distribution”, is one of the real estate terms in Spain you should know before buying a horizontal property. It determines each owner’s share of the common elements, voting power, and financial responsibilities. But how are cuotas de participación calculated?

Cuotas de participación in Spain are determined based on:

• The size of the unit
• Its location within the building
• The intended use of the unit
• Access to common services

Additionally, these percentages are established during the horizontal division process and recorded in the horizontal division deed.

In conclusion, if you are considering buying an apartment in Spain, the legal framework becomes very important to calculate these expenses and protect your rights. At Spain Homes ®, our understanding of Spain’s real estate market and the expertise of our experienced lawyers allows us to guide you through legal structures, registration procedures, and community rules. Contact us now to get further details and make your purchase smooth!

Frequently Asked Questions about Horizontal Properties in Spain