Living and running a business in the same building is possible. You can run a business in your single-family home with a commercial section or build a commercial building with a residential section. What are the differences between these two types of buildings, and why are they such practical solutions?
Commercial and residential building – definition
Commercial premises include all types of offices, offices, and warehouses that should be used according to the specific nature of a given business. A commercial-residential building, on the other hand, is a building that combines residential and commercial spaces. Many entrepreneurs choose this solution, offering numerous benefits, not just financial.
It's worth knowing! You can learn more about the definition of commercial premises in another article available on the Nieruchomości Orange blog: Commercial Premises – What is It?
Commercial and residential building – what VAT?
The 8% VAT rate applies to a specific group of buildings. It applies to, among others:
1.deliveries;
2.construction or reconstruction;
3.renovation;
4.modernization or thermal modernization;
Buildings or parts of buildings that are part of a social housing program. Other buildings are taxed at a 23% rate. The nature of a structure is determined by the intended use of the majority of its area – for example, if more than half of a structure is used for residential purposes, it is classified as residential.
Residential building with commercial premises
Wanting to live and run their business at the same address, many entrepreneurs choose to operate from a single-family home. This is a residential building with a commercial component, consisting of one apartment and one unit dedicated to providing services. Such designs typically feature a separate entrance to the home, allowing for a clear separation between the private and business areas.
The area of a commercial premises in a single-family home cannot exceed 30% of the area of the entire building.
If a building consists of one commercial unit and two residential units, it is not a single-family home, but a multi-family home with a separate commercial section. In this case, the restrictions on its area do not apply. Single-family homes with commercial sections are typically chosen by owners of smaller and sole proprietorship businesses who do not require a large area for their operations.
Commercial building with residential part
The second building variant, where one can live and work simultaneously, is a commercial building with a residential component . In this case, the commercial space exceeds 30% of the building's total area. Typically, the company is located on the ground floor, with the apartment located on the upper floor. However, when choosing this type of solution, all requirements for public buildings must be met. It must include, among other things:
sanitary and social facilities; a toilet adapted for people with disabilities; and appropriate stairs. The rules regarding plot layout and building construction are also more stringent in this case than for a single-family home with a commercial unit. This makes it a good solution, especially for businesses that require more space. A commercial building with a residential section can house a shop, hairdresser, kindergarten, or banquet hall. However, if you only need a small office with access to a computer and other office equipment, a commercial building in a home is a better choice. Why choose a commercial-residential building? Combining a house with a commercial unit or a commercial building with a residential unit offers a number of benefits. One of them is cost savings – you don't have to allocate additional funds to build a second, separate facility or rent an office in a different location. This also results from the lack of the need to travel to the other side of town to work. Working and living in the same building, you can also constantly monitor deliveries and employee activities.
Residential and commercial building – regulations
Before you decide to buy a specific commercial or residential building , familiarize yourself with the regulations governing it. These are detailed in the Regulation of the Minister of Spatial Planning and Construction regarding the technical requirements for buildings and their location. This will ensure that the investment meets all requirements. If you're looking for a commercial or residential building , check out our selection of properties for sale . At Orange Nieruchomości, you'll find properties in Szczecin and Kołobrzeg, as well as Częstochowa, Ruda Śląska, and Jelenia Góra.
FAQs:
How to check whether a residential and commercial building can be built on a plot?
To determine whether a plot of land is suitable for a mixed-use residential and commercial building, first verify the provisions of the Local Spatial Development Plan (MPZP) or obtain development conditions. These documents specify whether mixed-use development is permitted in a given area and the permitted proportions between residential and commercial uses. This is the basis for defining the nature of the investment.
Does running a business in a residential and commercial building require a notification or permit?
Operating a business in a residential/commercial building requires a notification or permit, depending on whether it involves changing the use of part of the premises. If we are adapting residential premises for office or commercial purposes, we must formally notify the district office to confirm compliance with the technical requirements for the new function.
What services can most often be provided in the service part of a residential building?
In the commercial section of a residential building, it's worth focusing on businesses that won't disrupt the surrounding area or the household. In single-family homes (up to 30% of the commercial space), these typically include medical offices, accounting firms, beauty salons, or small shops. In larger commercial buildings, these might include, for example, kindergartens or restaurants.
Do the service and residential parts need to be separated by separate entrances?
While separating commercial and residential areas with separate entrances isn't always a legal requirement, it's highly recommended and widely used. A separate entrance allows for a clear separation between private and professional areas. This is crucial for the comfort of residents and ensures a professional image for the company in the eyes of customers.
Are there additional fire safety requirements in a commercial and residential building?
Whether additional fire safety requirements apply to a commercial-residential building stems directly from the fact that the commercial section is often considered a public building. This means meeting stricter standards than those for a typical home. This includes the use of materials with appropriate fire reaction ratings, designating escape routes, and ensuring access to fire extinguishing equipment.
How is the service component of property tax taxed?
When it comes to taxing commercial properties, one should be prepared for significantly higher property tax rates than for residential properties. Municipalities establish separate, higher fees per square meter of commercial space, so precisely defining commercial space directly impacts the annual maintenance costs of the property.
Is it possible to separate premises in a residential and commercial building and establish separate land and mortgage registers?
In a residential-commercial building, it is possible to separate units and establish separate land and mortgage registers for them, but this option must always be confirmed after obtaining a certificate of independence for the units. This is a beneficial solution for investors, as it allows for the legal division of the property. This allows the commercial portion to become an independent subject of trade, sale, or rental.
Will the bank grant a standard mortgage loan for the purchase of a residential and commercial building?
The granting of a standard mortgage for the purchase of a residential-commercial building depends on the proportion of residential to usable space in the building. If the commercial portion predominates, for example, exceeds 30% in a single-family home or 50% in other cases, the bank may classify the property as commercial, requiring a more expensive investment loan for businesses.