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Every month, part of the condominium contribution goes into the common reserve fund. Many owners ask whether it is really compulsory, how the amount is worked out and whether they can stop paying when the fund already has enough money. The short answer is that the mandatory reserve fund applies to every building under horizontal property and that the minimum contribution is fixed by law. In this guide we explain the legal rule in force in 2026, how the contribution is calculated with examples, where the money must be held, what it can be used for and what happens to those who refuse to pay.
In short
- The common reserve fund is mandatory in every condominium (art. 4(1) of Decree-Law 268/94).
- Each owner contributes at least 10% of their share of the other expenses (art. 4(2)).
- It is intended for the building’s maintenance costs; if used for another purpose, it must be replenished within 12 months (art. 4(3)).
- It must be deposited with a bank and is administered by the general meeting (art. 4(4)).
- The contribution cannot be refused: the debt can be collected using the minutes as an enforceable title (art. 6).
Is it really mandatory?
Yes. The rule is in the decree-law that complements the horizontal property regime:
«1 – É obrigatória a constituição, em cada condomínio, de um fundo comum de reserva para custear as despesas de conservação do edifício ou conjunto de edifícios.» — Decree-Law 268/94, article 4(1)
In plain English: every condominium must set up a common reserve fund to pay for the maintenance of the building or group of buildings.
The obligation applies to all condominiums, regardless of the number of units or the age of the building. The general meeting cannot decide to abolish the fund or to set a contribution below the legal minimum. It can, however, decide on a higher contribution.
How the contribution is calculated
Each owner contributes an amount equal to at least 10% of their share of the condominium’s other expenses (art. 4(2)). Since each owner’s share usually follows the permillage (art. 1424 of the Civil Code), the fund follows it too.
Example. A building’s annual budget for running costs is €30,000. Unit B has a permillage of 60‰.
- Annual share of expenses: €30,000 × 60 / 1,000 = €1,800.
- Minimum reserve fund (10%): €180 a year, or €15 a month.
- Monthly total: €150 running contribution + €15 for the fund = €165.
| Annual budget | Permillage | Annual share | Minimum annual fund (10%) | Monthly fund |
|---|---|---|---|---|
| €30,000 | 60‰ | €1,800 | €180 | €15 |
| €30,000 | 120‰ | €3,600 | €360 | €30 |
| €12,000 | 85‰ | €1,020 | €102 | €8.50 |
Illustrative figures, only to explain the calculation.
See the full calculation of the contribution in how the monthly condominium fee is calculated.
Where the money must be held
The common reserve fund must be deposited with a bank, and the general meeting is responsible for administering it (art. 4(4)). In practice, many condominiums use a dedicated account or a sub-account separate from the current account, which makes reporting easier. The account should be in the condominium’s name, never in the name of the administrator or the management company.
What it is for and when it can be used
The fund is intended for the building’s maintenance costs: repairing the roof, painting the façade, waterproofing, replacing shared pipes or the lift. The general meeting can decide to use it for another purpose, but in that case the owners must pay, within a maximum of 12 months, an extraordinary contribution to replace the amount used (art. 4(3)). If they do not pay, the collection rules in article 6 apply.
The administrator must check that the common reserve fund exists (art. 1436(1)(e) of the Civil Code) and present accounts to the general meeting.
Can I refuse to pay into the reserve fund?
No. The contribution is a legal obligation of each owner. The argument that the fund already has enough money does not exempt anyone from paying. The minutes that approve the budget and the contributions, with the amount and due date, are an enforceable title against anyone who does not pay (art. 6 of Decree-Law 268/94). The title covers late-payment interest at the legal rate and any penalties approved.
If you disagree with an amount set above the minimum, the way forward is to vote against it and, if appropriate, challenge the decision within the legal deadlines. Read our guide to debts to the condominium.
What if I sell my unit?
The fund belongs to the condominium and serves the building. The law does not provide for contributions to be returned to someone who sells their unit. Before the deed of sale, the seller should ask the administrator for the statement of charges and debts, which includes any overdue contributions to the fund (art. 1424-A of the Civil Code).
Common mistakes in managing the fund
- Treating 10% as a maximum. The law sets a minimum: each owner contributes at least 10% of their share of the other expenses. The general meeting can approve a higher percentage, for example when maintenance works are coming up.
- Not updating the contribution. Since it is a percentage of the other expenses, if the annual budget goes up, the contribution to the fund goes up too.
- Mixing the fund with the current account. The money must be deposited with a bank; keeping it separate from day-to-day expenses makes it clear how much is really available.
- Using the fund without a decision. Using the fund for anything other than maintenance requires a decision of the general meeting and must be replenished within a maximum of 12 months.
- Leaving the balance out of the accounts. The fund’s balance should appear separately in the annual report presented to the general meeting.
Checklist
- The annual budget provides at least 10% for the reserve fund.
- The fund is deposited with a bank, preferably in a separate account.
- The accounts presented at the general meeting show the fund’s balance.
- Any use for another purpose is replenished within 12 months.
- The maintenance plan states which works the fund will pay for.
See also our guide to transparency in condominium accounts.
How Condoroo helps
Condoroo manages more than 600 condominiums, with a team of more than 20 professionals. In each one, the bank account is in the condominium’s name and the reserve fund is recorded separately in the accounts presented to the general meeting. Plans start from €6.50 per unit per month.
Mandatory reserve fund: frequently asked questions
Is the reserve fund mandatory in every condominium?
Yes. Article 4 of Decree-Law 268/94 requires a common reserve fund to be set up in every condominium.
How much do I have to pay into the reserve fund?
At least 10% of your share of the condominium’s other expenses. The general meeting can set a higher amount.
Can I refuse to pay if the fund already has a lot of money?
No. The contribution is mandatory and the debt can be collected in court on the basis of the minutes.
Can the reserve fund pay for cleaning the building?
The fund is intended for maintenance works. If the general meeting uses it for another purpose, the owners must replenish it within 12 months.
Where should it be deposited?
With a bank, under the administration of the general meeting of owners.
Do I get the fund back if I sell my home?
The law does not provide for it to be returned. The fund belongs to the condominium and continues to serve the building.
This article is for information only and does not replace legal advice for your specific case. Legislation checked on 26 October 2026.
