Before discussing change of intended use, it’s important to briefly define what it is.
The intended use of a property is the sum of its modes and purposes; a category is assigned to it to indicate its function.
The following are the seven main categories of property intended use:
Residential
Industrial and artisanal
Commercial
Tourism
Hospitality
Production and management
Agricultural
If a single property hosts two different intended uses, it is assigned the predominant function in terms of usable area. For example, if a property is 51% productive and 49% commercial, it will be assigned to the “productive” category, which is the predominant one in terms of usable area. Furthermore, the two purposes must be correlated; therefore, if the productive part is concerned with the production of leather, the commercial part will be concerned with selling products obtained from the processing of leather, such as shoes, bags, and belts.
How to Change Land Registry Category: Land Registry VS Urban Planning
If you are interested in a change of intended use, please note that the first step involves urban planning, requiring a change of intended use permit from the relevant municipality. Only secondly is a change in cadastral category made, which therefore affects the tax component.
Urban Planning-Relevant Change of Use
A change of intended use is considered urban planning-relevant when a change in functional category (the seven above) is required, whether or not it involves the construction of works. If the property remains within the same category, the change of intended use is not considered urban planning-relevant.
For example, changing a home to a shoe store requires a change in functional use: from residential to commercial, and is therefore considered urban planning-relevant; similarly, changing the intended use from office to residential requires a change in the property’s urban planning-relevant use. As previously explained, once the change of use has been obtained at the urban planning level, it is possible to update the cadastral use. However, changing from a residence to a bed and breakfast is a different matter; this does not require a change in category and is therefore not relevant from an urban planning perspective.
When can a property’s use be changed?
With a few exceptions, changing a property’s use is always permitted.
It cannot be changed when:
the PRG (General Planning Scheme), or the Structural Plan and the Urban Planning Regulations of the relevant Municipality prohibit it. The relevant Municipality’s technical office can provide the necessary maps to understand the constraints to which the property is subject and therefore what construction work is feasible or not;
the property does not meet the minimum legal requirements, therefore, if the building does not comply with health and hygiene standards, air-conditioning ratios, or minimum room dimensions. Here too, the specific characteristics are defined by the municipality and may vary from place to place, so it’s best to always refer to the regulations of the municipality where the property being rezoned is located;
the condominium regulations (if you live in a condominium) prohibit this.
N.B.: To be valid, the regulations must be contractual, meaning approved by the unanimous consent of the condominium members.
Are permits required for a change of use?
Yes, a change of use requires a Building Permit (CILA) to be submitted to the municipality. This is because, even if the change requires no or only minor work, upon completion of the work, the property will be different from its previous appearance, so a change of use always requires extensive renovation.
Once the urban planning has been finalized, the land registry is updated, which will recalculate the taxes due.
Finally, to use the property for a new intended use, it is necessary to deposit the Certificate of Occupancy with the Municipality, along with the system certificates compliant with current regulations.
What are the costs of changing a property’s designated use?
It’s difficult to estimate a single cost for changing a property’s designated use, but it’s possible to identify the variables that will influence the overall cost.
A change of use often involves bringing systems, openings, rooms, etc. up to code, requiring construction work. This requires considering the cost of the construction company involved, in addition to the fees of the professionals responsible for preparing urban planning, land registry, or energy certification, project management, and any coordination of safety on the construction site.
Finally, don’t forget the urbanization charges, the amount paid to the municipality when a new building is constructed. This building will benefit from roads, aqueducts, lighting, and sewerage systems, all of which the administration has invested in. When changing from one category to another, the urbanization burden will also change; for example, this means different water consumption, parking usage, and sewerage loads.
Therefore, a change of use requires an adjustment of the urbanization fees to be paid to the municipality, another amount to be added to the previous ones, in order to estimate the total cost of the change of use.
Timescale
In general, it is necessary to contact a professional who can obtain the documents pertaining to the property from the relevant municipality. The professional will contact the municipality to request an appointment to inspect the building permit. Once the inspection is completed, the professional will verify the urban planning compliance, i.e., the consistency between the latest declared floor plan and the actual property.
This is followed by a review of the project’s health and safety requirements, the possible design of the spaces, and finally the Building Permit. After approximately two months, the urban planning application can be submitted.
Article written by the staff of Inside Project, architects in Verona and throughout Italy.