#Accounting management #Reserve capital

The reserve capital is held in the savings account of a co-ownership and is intended to cover extraordinary expenses (roof renovation, replacement of the central boiler, etc.).

To build up this reserve capital, an annual contribution of minimum 5% of the total amount of the ordinary common expenses of the previous year is deposited by the co-owners.

✋ In addition to this annual contribution, the General Assembly may vote an additional increase or decrease of the reserve capital. These increases and decreases in the reserve capital are decided by an absolute majority (50%+1).

✉️ The building manager is responsible for sending the capital requests to the co-owners (annual contributions and other increases) and for ensuring that the payments are made.

⚠️ Setting up a reserve capital is required by law, unless it is decided by a vote in a General Assembly (4/5 majority) not to set up this capital. In any other case, the reserve capital must be set up at the latest 5 years after the provisional acceptance of the common parts of the building.


For example: The savings account of my co-ownership currently contains 3000€. At the last General Assembly, it was decided to increase the amount in the savings account by 2000€, to reach a total of 5000€ (3000€ + 2000€). This 5000€ will constitute a capital to cover extraordinary expenses of the co-ownership, such as future renovation works.

Once this increase has been approved by the General Assembly, the building manager will send the capital requests to the co-owners, so that each of them can pay their share into the savings account of the co-ownership.