A new round of debate is unfolding in Spain between landlords and tenants—this time, the focus is on who should pay the property tax (IBI) and the garbage collection fee. A decision made in June 2025 by the Provincial Court of Alicante (Audiencia Provincial de Alicante) may become a precedent for similar cases nationwide. The judges reviewed a case in which the tenant challenged the obligation to pay these charges, arguing such expenses should not fall on them. However, the court sided with the owner, stating that if the rental agreement clearly stipulates the tenant is responsible for these payments, there is no room for dispute.
The dispute centered on the tenant’s refusal to pay charges from March 2020 to May 2021, claiming all possible expenses were included in the rent and that separate payments for IBI and waste collection were unlawful. Nevertheless, a first-instance court in Benidorm ordered the tenant to pay €7,800 in arrears and cover legal costs. The appeal was unsuccessful: the provincial court upheld the ruling, noting that the lease agreement was sufficiently clear and all disputed amounts were specified in detail.
Legal nuances
The court paid special attention to the difference between utility expenses and local taxes. The ruling notes that Article 20 of the Urban Lease Law (Ley de Arrendamientos Urbanos, LAU) allows parties to independently agree on cost allocation. However, IBI and the waste collection fee are not considered common housing maintenance expenses, but rather individual taxes linked to a specific property.
The judges emphasized that the amount of IBI is set by the municipality and does not depend on the owner’s will. Therefore, if the parties agree to include this tax in the tenant’s obligations, such a condition is deemed legal. The same logic applies to the waste collection fee, which often becomes a sticking point in disputes between tenants and property owners.
The contract is the foundation of everything
In the case under review, the lease agreement contained a separate line specifying the monthly amount for waste collection. This detail proved critical: the court found no grounds to release the tenant from payment, as he had accepted these terms when signing the contract. Moreover, the tenant was unable to prove he overpaid or incurred extra costs, making his claims unfounded.
The judicial panel also reminded that if a tenant believes they are paying more than required, they must provide evidence—receipts, statements, calculations. Otherwise, the court cannot rule in their favor. Thus, clarity and precision in the wording of a lease agreement become crucial for both parties.
Implications for the market
Experts note that this decision could impact lease agreement practices across Spain. Landlords now have an additional argument for including taxes and fees as tenants’ obligations, provided this is clearly stated in the contract. For tenants, the situation becomes less predictable: overlooking contract details could lead to unpleasant financial surprises.
At the same time, the court made it clear that if conditions are not explicitly stated, any attempts to collect additional payments may be challenged. Therefore, both parties should pay close attention to contract wording and keep all documents related to payments. Otherwise, disputes may not be resolved in their favor.
Court position
The decision of the Provincial Court of Alicante aligns with the stance taken by most Spanish courts, which hold that individual taxes and fees can only be charged to tenants if there is a clear agreement in place. Otherwise, such charges remain the responsibility of the property owner. The judges also emphasized that the waste collection fee may be included in the rent or listed separately, but what matters most is transparency and mutual consent.
Thus, legal practice is becoming increasingly clear-cut: if the tenant has signed a contract with such terms, it is virtually impossible to challenge them. Otherwise, courts tend to side with tenants, shielding them from unwarranted claims.
In case you didn’t know, the Provincial Court of Alicante (Audiencia Provincial de Alicante) is one of the key judicial bodies in the Valencia region (Valencia), handling appeals in civil and criminal matters. Its rulings often serve as precedents for other courts across Spain, especially regarding real estate and rental disputes.
