Accounting for HOAs & Condominium Associations

Yes. A condominium association (régimen de propiedad en condominio) that collects dues and pays vendors must have an RFC and file tax declarations. Even if the association is not-for-profit in nature, it must comply with SAT obligations. We handle registration and ongoing compliance.

Maintenance fees (cuotas de mantenimiento) collected from unit owners for the upkeep of common areas are generally not subject to IVA when the association is properly structured. However, services the HOA provides to third parties or income from renting common areas may trigger IVA obligations. We analyze your specific situation.

Reserve funds must be kept in a separate bank account from the operating account and tracked separately in the accounting records. Contributions to the reserve are recorded as the funds are collected, and withdrawals are documented with approved vendor CFDIs and board authorization. We maintain this separation and report on it monthly.

At minimum: monthly income and expense statements, a current balance sheet showing fund balances, and an annual report for the assembly meeting. We produce all of these in a clear format that non-accountant owners can understand, in both Spanish and English where needed.

Vendor payments without a valid CFDI create compliance risk for the association and may not be deductible if the HOA has taxable income. We validate every supplier invoice against SAT's verification portal before approving payment, and flag any non-compliant vendors to the board before work begins.