Who pays the service charges and the IBI on rented premises?
Whoever the lease says. With commercial premises it can be agreed that the tenant pays the service charges (owners' association fees), the “IBI” (the local property tax), the waste collection charge or any other expense or tax. The ban on passing taxes on to the tenant, in force since 8 October 2026, only applies to homes, so it makes no difference whether the commercial lease was signed before or after that date. If the lease says nothing, the service charges are paid by the landlord and the prudent view is that the IBI is too.
Alburquerque Abogados
José Manuel AlburquerqueWhat should be agreed
- Which expenses the tenant pays, such as the ordinary service charges, the IBI, the waste collection charge or the building insurance.
- In what proportion, normally the share of the premises in the owners' association.
- How they are evidenced and when they are paid, for example with a copy of the bill and together with the rent.
- What happens with special levies for works on the building. If the lease does not mention them, they are usually borne by the landlord.
- Who pays the utilities for the premises and in whose name the electricity, water or gas supply is contracted.
If the lease says nothing
The service charges are paid by the landlord, who is the one liable to the owners' association. As regards the IBI, the prudent view is the same. If the landlord wants the tenant to pay it, the safe course is to agree this in the lease.
As regards the owners' association and the tax authorities
Even if the lease says that the tenant pays, the landlord is always liable to the owners' association. The same is true of the IBI as regards the town council, because the person obliged to pay it is the owner. The agreement allows the landlord to recover it from the tenant afterwards.
If the tenant does not pay what he or she took on in the lease, the landlord can terminate it just as if the tenant had stopped paying the rent.
What is charged to the tenant for the service charges or the IBI carries VAT, just like the rent, because the tax authorities regard it as part of the rental price.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.