Renting a business premises is usually associated with high costs – that's why so many people wonder how to transform a farm building into a service building.
What is an outbuilding?
An outbuilding is a place used for storing materials, equipment, or tools, and for performing workshop work . It is also a building where agricultural produce is stored for the residents' use:
- residential building;
- collective housing building;
- individual recreation building,
and their surroundings. An outbuilding allows you to maintain order on your property , for example in the garden. The most popular types of outbuildings include barns, sheds, cellars, sheds, granaries, and livestock buildings .
Is an outbuilding subject to taxation?
A farm building is subject to property tax , but it is possible to apply for an exemption. If it is used for business purposes and constitutes a fixed asset, it is subject to property tax. However, if the building is used solely for agricultural purposes , it must be removed from the fixed asset register and then reported to the appropriate tax authority as being tax-exempt .
Now that you know exactly what a commercial building is, check out how it differs from a commercial building and what types of commercial premises there are .
Commercial building – basic features
Although there is no precise definition of a commercial building, a building in which business activities are conducted is considered one. However, it falls within the definition of a public building , as indicated by the Regulation of the Minister of Spatial Planning and Construction of December 14, 1994, on the technical requirements for buildings and their location. A public building is designed to perform functions such as :
- education, culture and science;
- state administration;
- justice system;
- health, social or welfare care;
- banking services;
- post and telecommunications;
- trade or catering;
- sports and tourism;
- passenger service in road, rail, water and air transport;
- religious cult.
A service building is one type of commercial building .
Planning to purchase a commercial or residential building? Find out what's especially important to know before making such an investment .
How to transform a farm building into a service building?
To change the use of a building – not only for economic purposes – you should:
- report your intention to transform to the architectural and construction administration body (in person, by letter or electronically);
- submit a technical expertise , i.e. an assessment of the building's condition based on calculations and tests of the strength of the walls, facades, roof, foundations, ceilings and other parts of the structure;
- get acquainted with the local development plan .
The most important information related to the construction of a commercial building can be found in the aforementioned Regulation of the Minister of Spatial Planning and Construction of 14 December 1994.
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What conditions must a facility for a service building meet?
A commercial building must meet certain requirements, including accessibility, public spaces, and lighting. Above all, entrances must have paved access roads at least 150 cm wide . Both one of these and the public areas inside the building must also be accessible to people with disabilities . Stairs at the main entrances must be no narrower than 35 cm , while internal doors must be at least 90 cm wide . Emergency lighting is also essential – however, this only applies to service buildings such as exhibition halls, bank operating rooms, theaters, or cinemas.
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FAQ – frequently asked questions about converting a farm building into a service building
1. Can any farm building be converted into a service building?
Whether a farm building can be converted into a commercial building depends primarily on the provisions of the local zoning plan or the planning permission, as well as the technical condition of the building. If the local plan prohibits commercial use in a given area or the building fails to meet technical and safety requirements, conversion may be impossible.
2. How long does the procedure for changing the use of a building take?
The duration of the change of use procedure depends on the completeness of the documents and the efficiency of the office, but it will typically take between 30 and 65 days. If the architectural and construction authority does not raise an objection within the statutory deadline, the building may be used in its new function.
3. Do I have to pay higher taxes after converting a building?
Buildings used for business purposes are subject to a higher property tax rate than farm buildings or buildings used solely for agricultural purposes, so in most cases, when a building is converted, a higher tax rate will be payable
4. Can neighbors block the conversion of a building into a commercial building?
Wondering if your neighbors can block the conversion of a building into a commercial space? Generally, they don't have this option if the development complies with applicable regulations. However, they can submit comments, especially if the planned activity could cause nuisances such as noise, increased traffic, etc.
5. Is an architectural design required for the transformation?
Whether an architectural design is necessary for a transformation depends on the scope of the planned work. If the change of use involves construction work that requires a building permit, an architectural and construction design will be necessary. In simpler cases, a technical report will suffice.
6. Does the change of use affect the property valuation?
A change in use often influences a property's valuation. Commercial buildings typically have a higher market value because they offer the potential for business and income generation. However, the final valuation depends on the location, the building's standard, and the type of services provided.
7. Does a commercial building need to have more parking spaces?
Whether a commercial building requires more parking spaces depends on local regulations and the type of services it will provide. The local zoning plan or zoning decision often specifies the minimum number of parking spaces for customers and employees.