Very often our clients give up on the property of their dreams simply because it has the status of an „atelier“. In such cases, do not hesitate to ask your personal consultant for details.

As we all know, properties with the status of "atelier" have several advantages, one of them being the attractive sale price. But what scares us?

To give you a head start on the situation, today we will debunk a few myths about properties with the status of "atelier"

Myth No. 1: Changing the property’s intended use is difficult, even impossible.

To change the status of an atelier to a dwelling, it must meet the specific requirements set out in the Spatial Development Act („ZUT“) and Ordinance No. 7 of 22.12.2003 on the rules and standards for the development of the different types of territories and development zones; in general terms, you need to have a separate entrance, a kitchen or kitchenette, a bathroom with toilet, and a storage room, which may be a garage or a basement, as well as other requirements. Given the restriction on carrying out address registration in a real estate property that is designated as an atelier, many people initiate the procedure for changing the intended use of the atelier into a dwelling. This can also be done under the new and simplified procedure for changing the intended use under Art. 147a of ZUT. For the requirements, the necessary documents and everything else regarding the change of status from “atelier” to “dwelling/apartment”, see here.

Myth No. 2: Industrial electricity is charged.

Given the changes mentioned above, if the atelier is used for residential needs, the client therefore pays residential electricity rates. This is confirmed by Decision No. 5098/29.04.2020, III panel of the Supreme Administrative Court, according to which it is accepted that electricity for residential needs may also be billed for an atelier if it is used for residential needs, and no change of use from atelier for individual creative activity to dwelling under the ZUT is required. 

Myth No. 3: Higher taxes.

It is often accepted that the atelier may be an „main residence“ within the meaning of § 1, item 2 of the Supplementary Provisions of the Local Taxes and Fees Act (ZMDT) and, as such, the applicant has the right to receive a tax reduction under Art. 25 ZMDT.

Myth No. 4: It is impossible to register an address.

Despite the few specifics of this procedure, in practice atelier owners can obtain an administrative address. From the above, albeit not exhaustively, it follows that there are sufficient grounds for citizens who have been refused administrative services, such as address registration, on the grounds that the declared property does not have the character of a dwelling/apartment, to seek legal protection for their rights and legitimate interests. In addition, the Supreme Administrative Court (Decision No. 2596/24.02.2021, III panel) accepts that, according to the wording of Art. 89, para. 1 of the Civil Registration Act, the address is the unambiguous description of the place where the person lives or where they receive their correspondence. By this concept, the legislator does not impose an obligation on the person to declare only a „dwelling“ within the meaning of the Spatial Development Act (ZUT) as their address – they may also declare another object of ownership that is actually suitable for residential use.

Source of information: https://bit.ly/3MdfxKK