How do condo fees work in Portugal apartments?

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Founder | Real Estate Advisor, at Wilderness Investments

João Morais is an expert in the Portuguese real estate market. With a network of trusted connections and years of experience, João ensures a seamless experience, guiding clients through every step of the buying process, from property search to contract negotiations. After speaking with him, we reviewed the blog post, made some changes, and included his experience to make it richer.

How are condo fees calculated monthly in Portugal apartments?

Condo fees in Portugal are calculated based on your apartment's relative size within the building, known as the "permilage" system.

Each apartment is assigned a percentage of the total building based on its square footage. If your apartment represents 3% of the building's total area, you pay 3% of all monthly expenses.

The monthly fee is determined by dividing the annual budget by 12 months, then multiplying by your apartment's percentage. This budget covers fixed costs like insurance and cleaning, plus variable expenses for repairs and maintenance.

As of September 2025, this calculation method ensures fair distribution of costs based on the space you occupy in the building.

It's something we develop in our Portugal property pack.

What services are typically included in Portugal condo fees?

Portugal condo fees cover a comprehensive range of building services and maintenance for all shared areas and facilities.

Standard inclusions are cleaning and maintenance of hallways, staircases, gardens, and rooftops, plus building insurance coverage for the structure and common areas. Security services are included when available in the building.

Maintenance of shared amenities like elevators, swimming pools, gyms, and lobby areas falls under condo fees. External building maintenance including painting, façade repairs, and structural work is also covered.

Utilities for common areas such as lighting, water for gardens and pools, and waste collection are included in the monthly charges.

Administrative costs including property management fees and legal compliance are part of the standard package.

What are the average monthly condo fees for different apartment sizes in Portugal?

Condo fees in Portugal vary significantly based on apartment size, building amenities, and location.

Apartment Type	Monthly Fee Range	Building Features
1-bedroom basic	€30 - €60	Basic maintenance, no amenities
2-bedroom standard	€60 - €120	Elevator, basic security
3-bedroom premium	€120 - €250	Pool, gym, concierge
Luxury developments	€250 - €500+	Spa, gardens, 24/7 security
Beachfront properties	€100 - €400	Premium location, salt protection
Historic center buildings	€40 - €100	Heritage compliance, specialized maintenance
Student accommodation	€25 - €50	Basic services, shared facilities

Do newer buildings have higher condo fees than older properties in Portugal?

Newer buildings in Portugal typically have higher monthly condo fees due to modern amenities and advanced building systems.

Contemporary developments often feature elevators, swimming pools, gyms, and security systems that require specialized maintenance and higher operational costs. These amenities can increase monthly fees by 50-100% compared to basic older buildings.

However, newer buildings benefit from energy-efficient systems that reduce utility costs for common areas, and they require less immediate reserve fund contributions since major repairs are years away.

Older buildings may have lower base fees but often face higher special assessments for structural repairs, elevator modernization, or façade restoration work.

As of September 2025, the trade-off between higher monthly fees and lower special assessments makes newer buildings financially predictable for owners.

Are utilities like water, electricity, or internet included in condo fees?

Water, electricity, and internet for individual apartments are almost always billed separately and not included in condo fees.

Condo fees only cover utilities for shared areas such as hallway lighting, pool filtration systems, garden irrigation, and common area heating or cooling systems.

Individual apartment utilities including water consumption, electricity usage, gas, and internet services are the responsibility of each owner and billed directly by utility companies.

Some luxury developments may include basic internet in common areas, but high-speed internet for apartments requires separate contracts with providers like MEO, NOS, or Vodafone.

This separation allows owners to control their personal utility consumption and choose their preferred service providers.

How are maintenance costs for elevators, pools, and gyms shared among owners?

Maintenance costs for shared amenities in Portugal are distributed using the same permilage system as regular condo fees.

Each owner pays a percentage based on their apartment's size relative to the total building area, regardless of how frequently they use amenities like pools or gyms.

Elevator maintenance, pool cleaning and chemical treatments, gym equipment servicing, and HVAC system repairs are shared expenses included in the annual budget voted on by owners.

Emergency repairs or equipment replacements may require special assessments if costs exceed the reserve fund, but these are still distributed by the permilage formula.

It's something we develop in our Portugal property pack.

Is there a mandatory reserve fund for major repairs in Portugal condos?

Portuguese law requires condominium buildings to maintain a reserve fund for major repairs and replacements.

At least 10% of the annual expense budget must be allocated to this reserve fund, distributed among owners based on their apartment's permilage percentage.

This fund covers significant expenses like roof repairs, façade restoration, elevator replacement, plumbing system overhauls, and structural maintenance work that exceeds normal operating costs.

The reserve fund is managed by the condominium assembly and administrator, with strict rules about when and how funds can be accessed for building improvements.

If major repairs exceed the available reserve, owners may face special assessments to cover the additional costs, but the fund reduces the frequency and size of these unexpected charges.

How often do condo fees increase in Portugal and by what percentage?

Condo fees in Portugal are reviewed and adjusted annually during the owners' assembly meeting, typically held in the first quarter of each year.

Fee increases reflect inflation, rising service costs, and changes in building maintenance needs, with adjustments usually ranging from 2-5% annually for stable buildings.

Buildings with aging infrastructure or new amenities may see higher increases of 8-15% as maintenance costs rise or new services are added.

Owners receive advance notice of proposed fee changes and vote on the annual budget that determines the monthly charges for the following year.

As of September 2025, inflation and energy cost increases have pushed annual fee adjustments toward the higher end of the typical range.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Who determines condo fee amounts and can owners vote to change them?

Condo fee amounts are determined by the annual owners' assembly (assembleia de condóminos), where all apartment owners have voting rights.

The building administrator prepares an annual budget proposal including all expected expenses, maintenance costs, and reserve fund contributions for owners to review and approve.

Owners vote on the total budget and can propose changes to spending priorities, service levels, or fee structures during the assembly meeting.

For extraordinary expenses like major renovations or new amenities, a majority vote of owners is typically required to approve the additional costs and any resulting fee increases.

The voting power of each owner is proportional to their apartment's permilage, so larger apartments have more influence in budget decisions.

What are the legal consequences for not paying condo fees in Portugal?

Non-payment of condo fees in Portugal leads to serious legal consequences that can affect your property ownership.

The condominium administrator is legally empowered to begin debt collection proceedings against delinquent owners, including court action to recover unpaid fees plus interest and legal costs.

Unpaid condo fees create a lien on the property that must be settled before the apartment can be sold or transferred to new owners.

Services to the apartment may be interrupted, and in extreme cases, the condominium can pursue forced sale of the property to recover outstanding debts.

Late payment penalties and compound interest make the debt grow quickly, so prompt payment is essential to avoid escalating financial and legal problems.

Do condo fees affect taxes or offer any tax deductions in Portugal?

Condo fees paid by apartment owners in Portugal are not tax-deductible and do not reduce your annual income tax liability.

These fees are considered personal living expenses rather than deductible property investment costs, even for rental properties where other expenses may be deductible.

Condo fees do not directly affect the Municipal Property Tax (IMI) calculation, which is based on the property's assessed value rather than monthly maintenance costs.

However, for rental property owners, some components of condo fees like building insurance or maintenance reserves may be treated differently for tax purposes, requiring consultation with a Portuguese tax advisor.

It's something we develop in our Portugal property pack.

How can you verify current condo fees and pending assessments when buying?

Before purchasing an apartment in Portugal, request complete financial documentation from the building administrator or your real estate agent.

Essential documents include the latest annual budget and financial statement, written confirmation of current monthly fees, reserve fund balance, and any approved or pending special assessments.

Review the minutes from recent owners' assembly meetings to identify planned major repairs, approved fee increases, or ongoing disputes that could affect future costs.

Ask specifically about any extraordinary expenses approved in the past 12 months and whether current owners face any additional charges beyond regular monthly fees.

This due diligence is standard practice in Portugal property purchases and should be completed before signing the purchase agreement (CPCV) to avoid unexpected financial obligations.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Lisbon Apartment Maintenance Fees
2. How Monthly Condominium Fees Are Calculated
3. Condominium Fees Rules Portugal
4. Reserve Fund Understanding
5. Portugal Property Running Costs
6. Buying New Property in Portugal
7. Utilities in Portugal
8. Real Cost of Buying Property in Portugal 2025