Can the president of a residents' association be paid?

How to pay the president of a residents' association

The fact that a president of a community of neighbours can charge or have some financial compensation can be the cause of some controversy within the community. For this reason, it is essential that the president who is going to charge the community fees does so in the correct way.

In addition, if this payment is not agreed in accordance with the law, it can be challenged by other members of the community. It should be noted that if this payment is not made correctly, it can lead to problems with the tax authorities for both the president and the community.

The figure of the president of the community of neighbours is a difficult role, undoubtedly in some properties more than in others. Because of this, it sometimes happens that there are owners who consider the possibility that the person who is going to act as president may be paid in some way by the rest of the community.

The chairman, which is an obligatory position, is usually held on an altruistic basis, i.e. completely free of charge. Sometimes it can be agreed, for example, to receive a monthly amount that more or less coincides with the amount of the community fees. Another option is to allocate a monthly amount for travel and representation expenses. 

How is it agreed to remunerate the president?

As we have written before, being the president of a community entails some inconveniences and work that creeps into our day-to-day tasks. For this reason, some estates consider rewarding in some way the owner who holds the position. To this end, the Horizontal Property Law makes clear the points to be followed.

As it is considered an act of mere administration, the resolution can be adopted by simple majority, in accordance with article 17.7 of the Horizontal Property Law.

Therefore, there is no legal impediment to paying a small amount of entertainment expenses as remuneration to the owner in the role of chairman.

Can only the president get paid?

 It is now clear that there is no legal impediment to paying a small remuneration to the owner who acts as chairman as a representation fee for the time and inconvenience inherent to the position. We have also seen that the agreement can be adopted by simple majority. However, and this is very important, this income must be declared to the tax authorities as an additional income.

Also, any member of the Board of Owners has the possibility to charge for services rendered, subject to the approval of the Board of Owners.

In principle, the only mandatory position is that of the President, who is the one who has and holds the representation of the community, as it says in the article 13.3 of the LPH. This article states that the President represents the community, in and out of court, in all matters affecting the community.

However, if any of the owners who hold these positions are allocated a fixed amount, this amount should be declared to the Inland Revenue. Any work that these people do for the community and for which they receive any payment, they will always have to declare it. 

In any case, you can always contact us at this link or in our office so that we can clarify any doubts and advise you on the best way to carry out this agreement.