No, in principle you are not allowed to live in business premises. The Dutch zoning plan determines whether a building may be used for living or working. For legal living in a commercial building you need a residential or special permit required. Without proper zoning, you risk fines, penalties and even eviction by the municipality.
What are the rules for living in a commercial building?
Dutch law is clear: every building has a specific destination that determines what it may be used for. These rules can be found in the zoning plan of your municipality, which falls under the Spatial Planning Act (Wro).
The zoning plan states exactly which activities are allowed in which location. A building with a business zoning may only be used for business purposes, such as offices, stores or production areas. This does not include living, unless the zoning plan explicitly allows it.
However, there are exceptions where living in a commercial building is allowed:
- If the property is mixed use (residential and commercial)
- At a company residence belonging to the company
- With a temporary waiver from the municipality
- After an official zoning change
Municipalities enforce these rules strictly because they want to prevent business parks from turning into residential areas. This is because it could interfere with the business operations of surrounding businesses and disrupt spatial planning.
What is the difference between a residential zoning and business zoning?
A residential zoning means that the property is officially intended for habitation. You may live there permanently, register at that address and conduct all residential activities. A business zoning, on the other hand, is purely for business activities such as office work, manufacturing, storage or retail.
The difference between these destinations has major practical implications:
| Aspect | Residential | Business destination |
|---|---|---|
| Permanent living | Permitted | Not allowed |
| Registration GBA | Possible | Not possible |
| Mortgage | Residential mortgage | Business mortgage |
| Insurance | Contents insurance | Business Insurance |
| Tax | Residential OZB | OZB non-residential properties |
In addition to these two main categories, there is also mixed use zoning. This allows both living and working in the same building. This destination is often seen in stores with upstairs apartments or in home practices. The exact conditions for such a mixed zoning vary by municipality and are described in the local zoning plan.
How do you apply for a permit to live in a commercial building?
To apply for a permit to live in a commercial building, you go through several steps with your municipality. The process begins with a request in principle in which you explain why you want to change the zoning.
The complete application process is as follows:
- Check the current zoning plan on your municipality's website
- Make an appointment with the municipality for a preliminary consultation
- Submit a request in principle with your plans and motivation
- Wait for the municipality's response (usually 8-12 weeks)
- In case of positive opinion: apply for the official environmental permit
- Provide all required documents
- The municipality publishes your request for objections
- After the objection period follows the final decision
You will need several documents for the application: a site drawing, floor plans of the new layout, an architectural report, and a justification of why the change fits within municipal policy. The cost varies greatly by municipality but count on several thousand euros in fees.
A good tip is to hire an experienced consultant who is familiar with local regulations. This greatly increases your chances of a successful application. The total processing time from request in principle to final permit can be up to a year.
What conditions must a commercial property have in order to live there?
A commercial building must meet strict technical and structural requirements before you can live in it. These requirements can be found in the Building Code and are designed to ensure the health and safety of residents.
The main technical requirements are:
- Fire safety: escape routes, smoke detectors and fire extinguishers
- Insulation: sufficient thermal and sound insulation according to current standards
- Ventilation: mechanical or natural ventilation in all accommodation areas
- Daylighting: minimum 10% of floor area of windows
- Ceiling height: minimum 2.6 meters in accommodation areas
- Sanitary facilities: private toilet and bathroom with hot water
- Kitchen: connections for cooking, water and drainage
In addition, the building must meet energy standards and must not contain asbestos. Accessibility also plays a role, especially with multiple residential units, you must consider facilities for the disabled.
A certified structural engineer can perform an inspection and report what modifications are needed. These investments can add up considerably, especially in older commercial buildings that are not yet insulated or where the technical systems are outdated.
What are the financial implications of living in a commercial property?
The financial impact of living in a commercial property is significant and affects various aspects of your financial situation. The most significant change is the adjustment of the WOZ value, which usually increases with residential zoning.
On the tax front, you will see the following changes:
- OZB rate changes from non-residential to residential (usually lower)
- Sewer levy and garbage levy to be adjusted
- Water tax changes to residential rate
- Possible entitlement to rent allowance in rental properties
For financing, the differences are also great. With a business zoning, you can only get a business mortgage with higher interest rates and stricter terms. After zoning, a regular residential mortgage comes into the picture, which is more favorable in terms of interest and repayment terms. Be aware that not all banks directly provide mortgages on former business properties.
Your insurance policies also need to be updated. Business insurance does not cover residential risks, so you will need new buildings and contents insurance. Premiums may be higher than for regular homes because of the different nature of the property.
Can you temporarily live in a commercial building?
Temporary living in business premises is possible under certain conditions. Municipalities can grant a temporary exemption for this purpose, usually for up to five to 10 years. This possibility is increasingly being used because of the housing shortage.
The most common forms of temporary occupancy are:
- Anti-squatting: occupancy to combat vacancy and squalor
- Informal care: temporary housing for those in need of care or informal caregivers
- Transformation projects: bridging during redevelopment
- Student housing: temporary units in vacant offices
- Migrant workers: short-term housing for seasonal workers
Specific rules apply to each form. With anti-squatting, for example, you have no rent protection and may have to leave the premises at short notice. In the case of informal care, you must be able to prove that the need for care is temporary and the exemption stops as soon as it expires.
Municipalities often impose additional requirements such as a notice of use, fire safety measures and an end date. The property must also meet minimum residential quality requirements, although these are less stringent than for permanent occupancy. If you want to know more about renting office space and options for flexible use, you will find extensive information about various options there.
What are the risks of living illegally in business premises?
Illegal living in commercial premises carries great risks. Municipalities actively enforce in this area, and the consequences can be far-reaching, both financially and personally.
The possible consequences are:
- Penalty: often rising to thousands of euros per week
- Administrative fine: one-time fine up to the legal maximum
- Administrative order: forced termination of occupancy
- Criminal prosecution: for violation of a court order
- Deportation: mandatory departure without alternative
- No right to urgency or replacement housing
In addition to these direct consequences, you also face other risks. You cannot register at the address, so you do not receive mail and cannot use municipal services. Insurance will not pay out in the event of damage because you are living illegally. In case of fire or other calamities, you are not insured and can be held liable.
The landlord is also at risk and may face penalties. This can lead to termination of the lease. As a resident, you then have no protection at all and can end up on the street immediately. Enforcement has tightened in recent years, especially in areas with many commercial properties.
How does mixed use zoning for living and working work work?
Mixed-use zoning provides the opportunity to legally live and work in the same building. This form of zoning is becoming increasingly popular due to the growth of working from home and the need for flexible live-work concepts.
Specific conditions apply in mixed-use zoning:
- Distribution: often maximum 50% living and minimum 50% working
- Access: separate entrances for living and working areas (not always required)
- Business activities: only category 1 and 2 businesses allowed
- Parking: sufficient parking spaces for both functions
- Environmental standards: no nuisance to residential function
Well-known examples include the classic retail buildings with upstairs living quarters, as well as modern live-work units in redeveloped business parks. These units often have an open floor plan where the first floor serves as work space and the upper floor as a residence.
The advantage of mixed-use zoning is its flexibility. You can adjust the ratio of living to working according to your needs, as long as you stay within the conditions. It can also be interesting fiscally because you can deduct certain expenses. Just be aware that mortgage options are more complex than with a pure residential zoning.
What are the alternatives to living in a commercial building?
If living in a commercial building is not possible, there are several legal alternatives that do fit within the regulations. These innovative housing solutions offer flexibility without the legal complications.
Popular alternatives are:
- Flex housing: temporary housing on vacant lots
- Tiny houses: small homes that are often easier to place
- Housing cooperatives: joint development of housing space
- Transformation projects: large-scale conversion of offices to housing
- DIY homes: cheap homes you fix up yourself
- Court houses: small-scale living arrangements with shared facilities
Many municipalities are actively encouraging these alternative housing options to address the housing shortage. They often offer expedited procedures and development support. Transformation projects are particularly popular, converting entire office buildings into apartments or studios.
Another option is to look for commercial properties that are already undergoing transformation. More and more developers are buying up commercial properties to convert them into residential space. As a buyer or tenant, you then benefit from the unique look without going through the whole process yourself. These properties often have an industrial character with high ceilings and large windows, which makes them special.
Important considerations when living in a commercial property
Considering living in a commercial building requires careful planning and a realistic view of the possibilities. The key lesson is that you can't just go live in a commercial building; there are legal routes to achieving this.
The main points of interest at a glance:
- Always check the zoning plan with your municipality first
- Calculate total cost including remodeling and procedures
- Enlist professional help for permit applications
- Allow for long lead times (up to more than a year)
- Explore alternatives if a zoning change is not feasible
- Avoid illegal occupancy because of high risks
For more information, you can contact your municipality, a specialized real estate agent or a land use planning consultant. Industry associations such as the NVM also often have useful information on the subject.
If you are looking for flexible work space instead of living space, or if you are looking for a legal combination of living and working, we can help you with appropriate solutions. We know the market for office space for rent Amsterdam and other cities by and by. Our expertise in flexible office solutions can help you find the perfect work-living balance within the legal framework. Feel free to contact with us to discuss the possibilities.