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Two neighbours in the same building can pay very different charges, and that is not necessarily a mistake. The monthly condominium fee comes from a calculation with rules set in the Portuguese Civil Code: it starts from the annual budget approved at the general meeting, splits it according to each unit’s permillage, applies the exceptions provided by law and adds the compulsory reserve fund. In this guide we explain each step, with a full example and the rules in force in 2026, so you can check your own charge and understand what you are paying for.
In short
- The starting point is the annual budget, prepared by the administrator and approved at the meeting held in the first half of January (article 1431 of the Civil Code).
- Common expenses are, as a rule, split by each unit’s permillage (article 1424(1)).
- There are exceptions: lifts, common parts for exclusive use and services the regulations split in equal parts.
- The reserve fund is added, at a minimum of 10% of each owner’s share (article 4 of Decree-Law 268/94).
- The annual amount is divided by the number of instalments approved, usually 12.
Step 1: the annual budget
The administrator must prepare the budget of income and expenditure for each year (article 1436(b) of the Civil Code). The budget is discussed and approved at the ordinary general meeting:
«1. A assembleia reúne-se na primeira quinzena de Janeiro, mediante convocação do administrador, para discussão e aprovação das contas respeitantes ao último ano e aprovação do orçamento das despesas a efectuar durante o ano.» — Civil Code, article 1431(1)
In plain English: the meeting is called by the administrator in the first fortnight of January to approve last year’s accounts and this year’s budget. If the regulations allow it, or the meeting approves it by majority, this meeting can exceptionally take place in the first quarter (paragraph 4).
Fixed costs
These repeat each year at a predictable level: cleaning of the common parts, the lift maintenance contract, electricity and water for the common areas, building insurance and management fees.
Variable costs
These change from year to year: small repairs, consumables, replacement light bulbs, unblocking drains. The budget should include a margin based on previous years.
Works and extraordinary costs
Works approved at a meeting can be paid from the reserve fund or through extraordinary charges, split by the same rules.
Step 2: split by permillage
Unless otherwise agreed, the costs needed to maintain and use the common parts and pay for shared services are paid in proportion to the value of the units (article 1424(1)). Each unit’s value is the permillage set in the constituting deed. Read more about permillage and each unit’s share.
Step 3: apply the exceptions
- Lifts: only owners whose units can be served by the lift share in its costs (article 1424(4)). A ground-floor shop with a street entrance may not pay for the lift.
- Common parts for exclusive use: costs for common parts that serve only some owners are paid by those owners (paragraph 3).
- Equal parts or use: the regulations can provide for certain shared services to be paid in equal parts or according to use, if approved without opposition by a majority of owners representing a majority of the building’s value, with specified and justified criteria (paragraph 2).
Step 4: add the reserve fund
Each owner contributes to the common reserve fund at least 10% of their share of the other expenses (article 4 of Decree-Law 268/94). Our guide to the reserve fund explains how it can be used.
A full example
A building with a lift approves an annual budget of €36,000: €30,000 in general expenses and €6,000 for the lift. The second-floor left flat has 80‰. The units served by the lift add up to 900‰ (the ground-floor shop, with 100‰, is not served).
| Item | Calculation | Annual amount |
|---|---|---|
| General expenses | €30,000 × 80 / 1,000 | €2,400.00 |
| Lift | €6,000 × 80 / 900 | €533.33 |
| Subtotal | €2,933.33 | |
| Reserve fund (10%) | €2,933.33 × 10% | €293.33 |
| Annual total | €3,226.67 | |
| Monthly fee (12 instalments) | €3,226.67 / 12 | €268.89 |
Illustrative figures, only to explain the calculation.
Transparency and participation
Owners are entitled to see the budget before the meeting and to receive the previous year’s accounts. The administrator must present the accounts to the general meeting (article 1436(l)). If your charge looks wrong, ask for the cost-sharing table and check the permillage and the exceptions applied. If something still does not add up, raise it at the meeting so the answer is recorded in the minutes.
What if you do not pay?
The minutes that set the annual amount and the due date are an enforceable title against owners who do not pay (article 6 of Decree-Law 268/94), including late-payment interest and any penalties approved. Our guide to debts to the condominium explains what happens next.
Ordinary and extraordinary charges
The monthly fee comes from the annual budget approved at the ordinary meeting. When an unexpected cost arises, such as major maintenance works or the replacement of equipment, the meeting can approve an extraordinary charge. The sharing rule is the same: unless otherwise agreed, it is paid in proportion to the value of the units (article 1424(1)).
For improvement works, owners who voted against them also share in the costs, unless a court finds their refusal justified (article 1426). And if the meeting uses the reserve fund for anything other than maintenance, the owners must top it up through an extraordinary charge within 12 months (article 4 of Decree-Law 268/94). For the different categories of works, see types of works in condominiums.
In every case, the minutes should state the amount each owner must pay and the due date. That is what allows an unpaid charge to be recovered in court.
Checklist to check your charge
- I have the approved budget and the minutes of the meeting.
- I know my unit’s permillage.
- I have checked whether I pay for the lift and any common parts for exclusive use.
- The reserve fund is calculated on my share.
- The number of instalments matches what was approved.
Ways to keep the fee under control
A lower fee is not always a better fee: cutting cleaning or maintenance usually costs more later. But there are sensible ways to keep costs in check. Compare the main contracts every few years, review the insurance cover at renewal, use the reserve fund for planned maintenance rather than emergencies, and recover arrears quickly so that paying owners do not end up covering for those who do not pay. Our article with tips to help you save on condominiums has more ideas.
How Condoroo helps
Condoroo manages more than 600 condominiums, including buildings with more than 300 units, with a team of more than 20 professionals. Every building’s bank account is in the condominium’s name, and our management plans start at €6.50 per unit per month. Before each annual meeting, we send the owners the budget proposal and the previous year’s accounts so that each charge can be checked.
Monthly condominium fee: frequently asked questions
How is the monthly condominium fee calculated?
Start from the approved annual budget, split it by each unit’s permillage, apply the legal exceptions, add the reserve fund and divide by the number of instalments.
Why does my neighbour pay a different charge?
Because units have different permillages and may be subject to exceptions, such as the lift.
Does the ground-floor shop pay for the lift?
Only if the unit can be served by the lift (article 1424(4) of the Civil Code).
Who approves the amount of the charges?
The general meeting, when it approves the annual budget, usually in the first half of January.
Can the charges be the same for everyone?
Only for shared services, if the regulations provide for it and are approved without opposition, with justified criteria.
How much is the reserve fund?
At least 10% of each owner’s share of the other expenses.
This article is for information only and does not replace legal advice on your specific case. Legislation checked on 26 October 2026.
