Convert Commercial Premises to Residential Property
Converting a commercial premises into a dwelling allows the legal status of a property to be changed, from being a commercial premises to a dwelling. This has recently become more common, and a reconditioning of spaces that previously had a purely commercial purpose has been observed. This is probably a consequence of the high demand for housing and the increase in prices for rentals, sales, and purchases of new-build properties.
But, is it legal for a property to change from a commercial premises to a dwelling? What are the regulations for the use of premises as housing? What steps should I follow? And if I rent or buy, how do I know it is properly adapted? In this guide, we explain how to convert a commercial premises into a dwelling from our Notary office in Barcelona specialised in real estate services.
Regulations for changing the use of premises to housing
First of all, it should be said that not all premises can be converted. Many owners are willing to convert premises into housing due to the increase in the price per square metre of their property. However, for the change of use from premises to housing to take place, a series of requirements must be met, including obtaining authorisation from the Administration.
Below, we offer you information on how to convert a premises into housing step by step.
Step 1: Requirements for changing the use from commercial premises to residential housing
Firstly, the premises must have urban planning viability and for this a feasibility study will be required, which will be positive if the place meets the requirements stipulated in the Technical Building Code and various regulations on installations. Among others, these include:
- That the community statutes do not explicitly prohibit the change of use of the premises.
- The floors must have the minimum legal heights.
- There must be direct ventilation and lighting.
- The usable area must total 40m2 or, in the case of studios, 25m2.
- The premises must be built on urban land.
Step 2: from the Project to the application for Change of Use of Premises at the Town Hall
Once the viability of the site for its conversion has been approved, a project must be designed that must be signed and supervised by an architect. In Barcelona, this professional must be a member of the Colegio de Arquitectos de Cataluña as it is considered a major works licence.
Together with this, the application for change of use will be submitted to the Town Hall of each locality. However, acceptance will also depend on other factors such as the housing density of the municipality's urban planning scheme.
The corresponding works licence must also be requested from the Town Hall to carry out the renovation or, in some communities, the responsible declaration.
Step 3: The Licence and Execution of Works
Once the building permit has been granted by the City Council, the rehabilitation period of the space begins. Converting a commercial premises into a dwelling involves adapting the place to personal needs while complying with safety and accessibility regulations.
Step 4: Obtaining the final building completion certificate, occupancy permit, and energy efficiency certificate
The premises have been converted into a dwelling; now only the company responsible for the renovation needs to sign the final work certificate, in order to subsequently obtain the necessary occupancy permit and the energy efficiency certificate.
Step 5: The first occupancy licence
This certificate certifies that the rehabilitation or renovation complies with current urban planning, technical and habitability legislation. The first occupancy licence is necessary to legally inhabit a new or renovated dwelling. It must be requested from the town hall of the municipality and submitted to the urban planning office. Afterwards, the municipal technicians will carry out the inspection of the property in order to verify that it complies with the regulations and the town hall will issue the licence.
Step 6: Deeds of change of use from commercial premises to residential property
Next, we must obtain the deed of modification of the use of the property or deed of change of use from commercial premises to residential property before a Notary. This notarial document is essential because it reflects that, for legal purposes, the change of use from commercial premises to residential property has taken place and the validity of this situation, certifying that the premises have undergone a modification and have obtained the certificate of habitability. Bear in mind that in many cases the renovation takes place, but not the change of use, therefore, there are irregularities in the status of the property.
Step 7. The Property Registry and the Agència de l'Habitatge
This is one of the final steps to be carried out. In this case, the Notary informs the land registry of the change in registration, from commercial premises to residential property. If you live in Barcelona, where we provide our services, you must also inform the l’Agència de l’Habitatge. After this procedure, you can request the activation of gas, water, or electricity supplies and register your residence at the new property.
Buy or rent a Residential Premises for Sale in Barcelona
It may also happen that you want to renovate a commercial premises to rent it out or sell it as a dwelling. For those interested, you can buy the premises before the renovation or you may wish to rent or buy the premises already renovated. If the first option applies to you, bear in mind the information we have provided to ensure that the change to residential use is feasible. On the other hand, those who opt for the sale and purchase of renovated residential premises may consider different options such as taking out a mortgage, with the corresponding mortgage deed before a Notary.
Deed of change of use from commercial premises to residential dwelling
As Notaries in Barcelona, below we will explain the involvement of our services in this process, with the aim that you also understand what the deed of change of use is for and the necessary documentation for its procedure.
The role of the Notary in the modification of the use of the property
The figure of the Notary in this deed is fundamental because they provide public certification that the change has been made according to the law. Likewise, they guarantee that the legal and administrative requirements that were necessary have been met.
To this end, the Notary must verify that the property complies with urban planning regulations by reviewing the documentation provided.
After this, they grant the public deed of change of use from commercial premises to residential property. It includes the details of the property and the change of use, thereby achieving the change of use of the property.
Afterwards, it must be registered in the Property Registry. As JLA Notarios offers a comprehensive real estate service, we can take care of the registration process for you; the Notary will manage it, and we will also inform you of the tax requirements involved in converting a commercial premises into a residential property, being able to process the taxes on your behalf.
Documents required for the Deed of Change of Use
The following documentation must be presented before a Notary to formalise the deed for the change of use of the property:
- Valid identification document of the buyers.
- Change of use licence.
- Technical project to convert the premises into a dwelling.
- Final work certificate.
- Energy efficiency certificate.
- Habitation certificate.
- Original deed of the property.
If necessary, the authorisation of the community of neighbours or the building book (document containing the information and characteristics of the building in which the premises dwelling is located) should also be provided.
How much does a deed for changing a commercial premises into a residence cost?
The cost of notarial acts is regulated by the Government and is based on the provisions of the Notarial Fee Schedule (RD 1426/1989, of 17 November). However, the exact price of a notarial document cannot be determined until its final content is known, that is, once it is signed. This is because several factors can influence the cost, such as the amount, the number of copies requested, the number of pages included in the document, as well as possible modifications or additions. In the case of changes of use, the necessary documentation can vary greatly.
If you wish to obtain a detailed quote, we invite you to contact us by the method you prefer:
- Through the contact form on the main page of this website.
- Via the "Contact" section located in the footer.
- Using the direct access to WhatsApp at the bottom right of this page.
- Sending an email to bcn@jlanotarios.com.
- Calling us on the phone 93 159 17 62.
We will send you a maximum quote tailored to your specific case and including the calculation of the AJD tax for the change of use, so that you can make the best decision.
Other questions related to a Premises Converted into a Residence
As you would notice that you carry out your activity in Catalonia, we would like to specify the requirements for the change of use from commercial premises to residential property in Barcelona:
- The premises must have a minimum of 40m2 built and a minimum surface area of 36m2.
- Minimum heights of 2.5 metres between floor and ceiling.
- Separation of 3 metres between windows and nearby buildings.
- Smoke extraction in bathrooms and kitchen.
- The premises must be at ground level.
- The premises cannot be located in an area restricted by the city's urban planning.
- It must be in an area not affected by housing density.
The change of use of a property is taxable and, among the taxes to which it is subject, we find the Tax on Documented Legal Acts. The IBI must also be considered, as the cadastral value of the property may differ.
As at JLA Notarios we offer a comprehensive service in Real Estate Law, we can manage on your behalf the payment and settlement of the tax for your change from commercial premises to residential use.
The cost of renovating or refurbishing spaces can vary, approximately between €30,000 and €100,000 depending on the cost of licences, the work, the professionals involved, and taxes.
Converting a commercial premises into a dwelling is a process that can take up to 9 months or more, mainly due to permits, project design, and the execution of works. The deed of change of use before a Notary in Barcelona and its registration usually takes about a month to manage.
It is mandatory to formalise the change of use in a deed before a notary so that the conversion of a commercial premises into a dwelling has legal validity in order to register the change in the Land Registry, which allows the property to be officially recognised.
Notary for deed of change of use from commercial premises to residential property
Converting a commercial premises into a dwelling is a complex process that requires obtaining information to ensure, above all, that it is a process carried out efficiently and complies with current regulations.
If you are considering changing a commercial premises into a dwelling, carrying out the deed of change of use is crucial for this transformation to be completely legal and for you to enjoy the advantages of your new property. Thanks to our experience and personalised attention, we offer you a swift and secure procedure, so that the entire process is carried out without complications.
By working with us, you will not only have a highly specialised team in real estate and contractual services who know all the legal details of this type of procedure, but we will also take care of minimising visits thanks to the implementation of new technologies, saving you time and inconvenience. Furthermore, we guarantee a close and transparent service, ensuring that every detail is perfectly recorded and in accordance with current regulations.
We invite you to get in touch with JLA Notarios, our notary office in Barcelona, located on Avenida Diagonal, through our contact form or by sending an email to bcn@jlanotarios.com.
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Minutes
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