Preparing the condominium budget is, every year, one of the tasks that causes administrators the most stress. It is the document that goes to a vote at the assembly, that sets how much each owner pays and that, if poorly prepared, is the first thing to be challenged.

The good news is that, with a method, preparing a condominium budget is simple. In this guide we explain what to include, how to comply with the law and how to calculate the quotas — and at the end you can download a ready-to-use template.

What the condominium budget is (and why it matters)

The budget is the forecast of the condominium’s expenses for the coming year, together with how those expenses will be split among the owners. It is the basis for the quotas each unit pays.

Its approval is one of the responsibilities of the owners’ assembly: without an approved budget, the administrator cannot reliably charge quotas nor cover running costs. That is why it is good practice to present it at the annual ordinary assembly.

Step 1 — List the running costs

The first step is to list all foreseeable expenses for the year. The most common are:

• Cleaning of common areas (contract or hired person);
• Electricity for common zones (halls, stairs, exterior lighting);
• Water for common areas (irrigation, cleaning);
• Elevator maintenance — a mandatory contract where an elevator exists;
• Building insurance — required by law, at least against fire risk;
• HVAC / boiler maintenance, gardening, and other applicable contracts;
• Administration fees, when management is professional;
• Small repairs and contingencies — it is wise to set aside an amount.

Tip: base your estimates on the actual figures from the previous year and add a margin for contract inflation.

Step 2 — Build the common reserve fund (the 10% rule)

Portuguese law requires a common reserve fund intended to cover the building’s conservation works. Each owner must contribute annually with an amount equal to at least 10% of their quota for the condominium’s expenses.

In practice, you add +10% for the reserve fund on top of the running costs budget. This amount does not disappear at year-end: it accumulates over time to face future works (roofs, façades, elevator), avoiding unexpected extraordinary levies.

Step 3 — Calculate quotas by permillage

As a rule, expenses are split in proportion to the relative value of each unit, expressed in permillage (the figures set out in the horizontal property deed). The sum of all units is always 1000.

The calculation is straightforward:

Annual quota of the unit = (Unit permillage ÷ 1000) × Total to budget
Monthly quota = Annual quota ÷ 12

Example: if the total to budget (expenses + reserve fund) is €7,293 and a unit has 250 permillage:

• Annual quota = (250 ÷ 1000) × €7,293 = €1,823.25
• Monthly quota = €1,823.25 ÷ 12 = €151.94

The sum of all units’ quotas must exactly equal the total to budget.

Step 4 — Present and approve at the assembly

Present the budget clearly: one page with the total expenses, the reserve fund and the table of quotas per unit. Once approved, record the figures in the minutes — that is the document that legitimises charging quotas throughout the year.

Common mistakes to avoid

• Forgetting the reserve fund — it is mandatory and protects the condominium from levies;
• Underestimating expenses — budgeting too little leads to cash shortfalls mid-year;
• Not splitting by permillage when the constitutive deed requires it;
• Not recording in the minutes — without approved minutes, charging is fragile.

Do it once, repeat with a click

For one condominium, a spreadsheet does the job. The problem appears when you manage several: replicating the budget, issuing payment notices, sending receipts and keeping accounting under the Portuguese standard (SNC) for each one, manually, eats up days every month.

That is exactly what GC – Condominium Management automates: budgets, quotas, notices, receipts and accounting, all in one place. But that is the next step — start by downloading the free template and prepare this year’s budget with no hassle.