Repair fund (fond oprav)

What the repair fund actually covers

A single colloquial name can hide several different items. So look at the payment schedule approved by the SVJ (owners' association) and at what the money is for. Routine management, a roof repair and new insulation may not be treated the same way for accounting or tax purposes.

As the unit owner, you pay the building management contribution to the SVJ yourself. Renting out the flat doesn't make that obligation go away. In a standard residential tenancy, it isn't a service you can add to the tenant's annual statement. You can reflect your costs in the level of rent, but don't pass them off as water consumption or another service. Civil Code, § 1180 and § 2251.

When you can claim the contribution for tax

If you tax rental income under § 9 using actual expenses and don't keep full accounts, the Financial Administration distinguishes between operating payments and money for technical improvements. According to its interpretation, operating payments are claimed when paid, while technical improvements are spread over time through depreciation. If payments originally treated as operating are later used for an improvement, you also correct the earlier tax treatment. The flat-rate expense allowance already covers all expenses, so you add nothing on top. General Financial Directorate (GFŘ) Instruction D-59, section on § 9(3) and (5).

An example: each month you send the SVJ 5,000 Kč, of which 3,000 Kč is for services and 2,000 Kč for building management. You don't automatically bill the tenant for the full 5,000 Kč. For the remaining 2,000 Kč, you need to know its actual purpose and use for tax purposes. So keep not just your bank statement but also the SVJ's breakdown.