Co-ownership fees explained: what you pay and when

What do you pay when you buy?

The share price. This is the price of your share of the home — usually an eighth. Unlike buying a bare property, the price of a co-owned share normally includes the work done to make the home ready: furnishing and equipping it, any renovation, setting up the ownership arrangements and the company's service. That is why a share usually costs a little more than an eighth of what the empty property would sell for, and why you can stay from the first week.

Purchase taxes and legal costs. These follow the rules of the country — for example a regional transfer tax in Spain, notaire costs in France, a registration tax in Italy, IMT and stamp duty in Portugal. Our tax by country guide sets out the rates.

Buying through us. We are independent agents and experts. Our partner pays us when a sale completes; you pay the same share price as going direct, and nothing to us. See how Co-Ownership Property makes money.

What do you pay while you own?

Each owner pays their share of what the home costs to run. Depending on the home and the company, that typically covers:

• Management — the team that runs the home: bookings, changeovers, staff, accounts.
• Insurance of the building and contents.
• Maintenance and upkeep — gardens, pool, repairs, servicing.
• Local property taxes — IBI in Spain, taxe foncière in France, IMU in Italy and so on.
• A repair reserve — money set aside each year for replacing things that wear out, so a new roof or boiler does not land as a surprise bill.
• Community or building fees where the home is in a development.

Some companies collect a fixed monthly amount; others share out the home's actual annual budget, sometimes with a balancing payment at year end. Utilities, a cleaning fee per stay and extras such as a welcome shop or late check-out are often charged when you use them rather than included.

Running costs differ widely from one home to another — size, pool, location, the level of service — so we do not quote averages. Ask us for any home and we will send its figures, along with what is and is not included.

What do you pay when you sell?

Selling can involve a resale fee, set out in your ownership documents, and an agent's commission if you use an agent. If you make a gain, the country where the home is may tax it, and so may your own. You set the price. Your co-owners get the first chance to buy at that price; if they pass, it goes on the open market. See how to sell a fractional share.

Costs worth asking about

None of these is hidden if you ask, but they are easy to miss when you compare homes:

• Cleaning per stay and whether linen and towels are included.
• Utilities — included, shared, or charged per stay by use (heating a ski home or a heated pool can matter).
• How running costs have changed over recent years, and how increases are decided.
• Major repairs — whether the reserve covers them, and what happens if it does not.
• Currency — if you earn in dollars or pounds and the costs are in euros, the exchange rate moves your bill.
• Non-resident taxes you pay personally, such as Spain's annual non-resident income tax.
• Getting there — flights and transfers are part of the real cost of a holiday home.

12 questions to ask any co-ownership company

Whoever sells the home, these questions tell you most of what you need to know. A good company answers all of them in writing. We ask them on your behalf for any home we list.

1. What exactly will I own, and how is the home held? Can I see the documents before I pay?
2. What does the share price include — furniture, renovation, set-up, service?
3. What are the purchase taxes and legal costs on top, in total?
4. What are the running costs for this home, what do they cover, and what is charged separately?
5. How have the running costs changed since the home opened, and who decides increases?
6. How big is the repair reserve, and how are major works decided and paid for?
7. How many nights do I get, and how are high season and school holidays shared?
8. Can I bring guests, send family without me, or let my weeks?
9. Who manages the home day to day, and who do I call when something breaks?
10. How does resale work? Is there a minimum ownership period or a resale fee, and do my co-owners get the first chance to buy?
11. What happens if a co-owner stops paying their share of the costs?
12. What happens if the company itself changes hands or stops trading? Who looks after the home then?

The same questions answer the searches people make about individual companies — "reviews", "fees", "is it legit" — without relying on anyone's marketing. To compare the main types of company side by side, see co-ownership companies compared.

Frequently asked questions

What fees do you pay in fractional ownership?

The share price and local purchase taxes when you buy; your share of the home's running costs while you own, plus utilities and cleaning as you use them; and sometimes a resale fee and tax on a gain when you sell.

What is included in the running costs of a co-owned home?

Typically management, insurance, maintenance and upkeep, local property taxes, a repair reserve and any community fees, split between owners by share. Utilities and cleaning are often charged per stay.

What percentage fee does a co-ownership company charge at purchase?

Companies usually build their service into the share price rather than charging a separate percentage, which is why a share costs a little more than an eighth of the bare property value. Ask what the price includes and the total of taxes and legal costs on top.

Is there a fee to sell a fractional share?

Some homes charge a resale fee and some sales involve an agent's commission. It is set out in the ownership documents, so check before you buy.

Do I pay a fee to Co-Ownership Property?

No. Our partner pays us when a sale completes, and you pay the same share price as going direct.

What are the running costs for a specific home?

They vary widely with the home's size, location and level of service. Ask us about any home and we will send its running costs and what they cover.