Living in Non-Residential Premises in Czechia: Risks and Legal Remedies

Using non-residential premises for permanent living poses a legal risk, as it conflicts with the occupancy permit decision and the new Building Act in the Czech Republic. You may face substantial fines, a ban on use, or the need for costly reconstruction—issues that typically arise when selling the property or during an inspection by the Czech building authority. In this article, we explain the specific risks involved and how to remedy the situation legally by changing the approved purpose of use.

Quick summary

• Legal issue: Using non-residential premises for living is contrary to the purpose defined in the occupancy approval decision or the project permit; under the new Czech Building Act, you may face a fine of up to CZK 500,000 and a ban on use.
• Inspections and impacts: The risk of being discovered arises during a building inspection, when selling the property (liability for defects), when registering permanent residence, or due to reports from neighbours.
• Path to legalisation: Legalisation is carried out through a change of the permitted use of the building, which often requires construction modifications, compliance with hygiene and fire-safety standards, and subsequent occupancy approval.
• Professional support: ARROWS advokátní kancelář provides end-to-end legal support under Czech law, communication with the authorities via  and risk minimisation throughout the entire re-approval process.

What non-residential premises mean and why they cannot be used for living

In legal terms, non-residential premises are a room or a set of rooms intended for a purpose other than living – for example, a studio, shop, office, warehouse, or garage. Their legal status is precisely defined under Czech building legislation, and in the Czech Real Estate Cadastre they are recorded with a specific permitted use.

If you live in such premises without a formal change of use approved by the Czech building authority, you are breaching public-law regulations. The Building Act (Act No. 283/2021 Coll.) strictly requires that a building be used only for the purpose specified in the building permit or the occupancy approval decision.

Premises intended for living must meet stricter construction and technical parameters than non-residential premises. Standards for daylight, sunlight exposure, noise limits, clear ceiling height (typically at least 2.6 m), ventilation, and fire safety differ significantly for apartments compared to warehouses or offices.

Although the new Civil Code (Section 2236 of the Civil Code) protects tenants even if they live in premises without occupancy approval (the lease agreement remains valid), this does not relieve the property owner of liability towards the Czech building authority. The issue usually comes to light during a building inspection, when selling the property, in tax proceedings, or based on neighbours’ complaints.

Related questions on the definition and legal nature of non-residential premises

1. Is non-residential premises different from an apartment only by the label in the Cadastre, or are they also structurally different?
It is not just an administrative matter. Non-residential premises (e.g., studios) often do not meet limits for noise, sunlight exposure, or room height. Converting them into an apartment (re-approval/reclassification) must eliminate these differences or address them through an exemption, which is technically and legally demanding under Czech law.

2. If I am in non-residential premises only temporarily, is it legally problematic?
Yes. The Czech Building Act does not distinguish by length of stay, but by the actual manner of use. If you occasionally sleep in an office after work, it is usually not an issue. However, if it is your centre of life, household, and permanent living, it constitutes use contrary to the occupancy approval.

3. What happens if the building authority discovers illegal living?
The authority will call on you to remedy the situation – i.e., to stop the unauthorised use. At the same time, it will initiate misdemeanour proceedings, where a fine may be imposed. If you do not comply, the authority may order eviction or a ban on use and impose repeated coercive fines.

What specific risks and fines you may face

Using non-residential premises for living without a permit (a change of permitted use) is a misdemeanour under the Czech Building Act. The attorneys at ARROWS advokátní kancelář encounter these situations increasingly often, especially in connection with the digitalisation of building proceedings and the interconnection of databases.

The building authority and fines: Under Section 303(1)(b) of the new Czech Building Act (No. 283/2021 Coll.), an individual commits a misdemeanour by using a building contrary to the occupancy approval decision or the project permit. A fine of up to CZK 500,000 may be imposed for this misdemeanour, and in the case of unauthorised construction alterations the sanction may be even higher.

Sale of property and liability for defects: If you sell an “apartment” that is legally a studio or non-residential premises and you do not clearly state this fact in the purchase agreement, it constitutes a material legal defect. The buyer may withdraw from the contract, request a discount on the purchase price, or claim damages.

In addition, banks do not provide standard residential mortgages for such premises, which significantly reduces market value. If you use the premises for living but pay tax as for “non-residential” premises, or vice versa, you may also come into conflict with the Czech tax authority.

Insurance: In the event of an insured event (fire, flooding), insurers may reduce or entirely refuse insurance benefits if they find that the premises were used contrary to their occupancy approval status and the insurance contract.

Court disputes: Neighbours may defend themselves against noise or odours from your “apartment” by filing a lawsuit (so-called nuisance/immissions). In such a dispute, the fact that the premises are not intended for living will be a major disadvantage for you.

Legalising non-residential premises – what steps you need to take

The process of converting non-residential premises into a flat is technically referred to as a change in the purpose of use of a building (possibly combined with construction alterations). Under Section 239 et seq. of the new Building Act (Act No. 283/2021 Coll.) in the Czech Republic, it requires a permit from the Building Authority.

Assessment of structural and technical feasibility

First, it is necessary to verify whether the premises can be used as a flat at all. It must meet the requirements of the Decree on Construction Requirements (or the Prague Building Regulations in Prague). The key parameters are:

• Ceiling height: Habitable rooms must generally have at least 2.6 m (2.3 m is permitted in attics; less for recreational buildings).
• Lighting and sunlight: The flat must have sufficient daylight. This is the most common reason why basements or north-facing studios cannot be legalised.
• Noise: Hygienic noise limits must be met (from outside and from neighbours).
• Parking: Establishing a new residential unit may trigger an obligation to provide a new parking space (on your own land).

ARROWS’ Czech legal team works with certified engineers and architects who will carry out an initial feasibility analysis.

Project documentation and opinions of the relevant authorities

If the plan is realistic, a certified designer will prepare the documentation for the change of use. You must also obtain binding opinions from the relevant authorities – typically the Fire Rescue Service (fire safety) and the Regional Public Health Authority (noise, light).

Without a positive opinion from the public health authority and the fire service, the Building Authority will not approve the change. It is also often necessary to provide the consent of the owners’ association (SVJ), if the change affects common parts of the building or alters the appearance of the structure.

Permit for the change of purpose of use

The application is submitted to the Building Authority (now also possible electronically via the Builder’s Portal). If construction alterations are required (demolishing partitions, new ventilation), proceedings for a permit for the intended project will take place. The Building Authority will assess compliance with the zoning plan and technical standards under Czech legislation.

At this stage, ARROWS, a Prague-based law firm, monitors compliance with administrative deadlines and addresses any objections raised by participants in the proceedings (e.g., neighbours).

Implementation and occupancy approval

After the alterations are completed (if required), occupancy approval proceedings follow under Section 230 et seq. of the new Building Act. The Building Authority will verify whether the premises meet the conditions for residential use. If everything is in order, it will issue an occupancy approval decision, which legally changes the premises from “non-residential” to “residential”.

Entry in the Cadastral Register

Based on the occupancy approval decision, it is necessary to file an application to change the data in the Real Estate Cadastre (the Czech Cadastral Register). If a new unit was created by division, a new Owner’s Declaration and a geometric plan are also required. Only upon registration in the Cadastre is the process completed and the property has the full value of a flat.

Related questions about the legalisation process

1. How long does the whole process take?
Including project preparation, obtaining opinions and the proceedings at the authority, realistically allow 6–12 months, and longer in more complex cases. Building Authorities in the Czech Republic are often overloaded despite digitalisation.

2. Can I live in the premises during the legalisation process?
Formally, no—until a new occupancy approval decision is issued, the premises remain non-residential. However, in practice authorities often tolerate use during ongoing proceedings if there is no immediate risk. Legal representation helps keep communication with the authority constructive.

3. What are the costs?
In addition to construction costs, expect the cost of the project (tens of thousands of CZK), administrative fees and legal services. However, the increase in value from changing the property to a flat (20–30% higher market price) usually outweighs these costs many times over.

What to do if the Building Authority has already inspected you

If you have already received a request or a notice of the commencement of misdemeanour proceedings, the situation is serious. Inaction is the worst strategy. Contact an attorney immediately. ARROWS, a Prague-based law firm, will take over communication with the authority. Our goal at this stage is to:

• Gain time: We will request a reasonable deadline to respond and to remedy the situation.
• Minimise the sanction: In misdemeanour proceedings, we will argue mitigating circumstances so that the fine is as low as possible (or that punishment is waived).
• Initiate legalisation: By filing an application for retroactive approval of the change of use, we will demonstrate an effort to resolve the situation, which authorities view positively and often suspend repressive steps.

When legalisation is unrealistic and what alternatives exist

Sometimes technical parameters do not allow legalisation (e.g., a basement without windows, extreme noise exposure, missing parking). In such a case, alternative solutions exist.

Studio / Accommodation unit: If the premises do not meet the limits for a “flat” (e.g., due to noise or light), you can try changing it to a “studio” or an “accommodation unit”. These categories allow people to stay there but have less stringent hygienic requirements.

Sale with the status disclosed: You sell the premises as non-residential premises/a studio. The price will be lower, but the purchase agreement prepared for you by ARROWS will transparently address this status, thereby relieving you of liability for defects.

Lease (as non-residential): The premises can be leased. The lease agreement should state the designated use of the premises. If the tenant uses the premises for living, they bear part of the public-law risk, but as the owner you should not actively support this situation contrary to the occupancy approval under Czech law.

Why cheap solutions without experts do not pay off

Legalisation is not just “filling in a form”. It is administrative proceedings requiring knowledge of Czech building law, ČSN technical standards and the Administrative Procedure Code. Errors in the project or a poorly drafted application can lead to a refusal, which is then difficult and costly to remedy.

ARROWS, a Prague-based law firm, has a team specialising in construction law and development. We work with technical experts and our services are covered by professional liability insurance in the hundreds of millions of Czech crowns.

Conclusion

Legalising non-residential premises as a flat is one of the best ways to increase the value of a property and gain legal certainty in the Czech Republic. However, it is a process full of legislative pitfalls. In 2026, with the new Building Act and digitalisation, authorities have better tools for inspections and enforcement, so it is not worth relying on the hope that “no one will find out”.

If you want to resolve your situation safely, avoid fines in the hundreds of thousands of CZK, and ensure peaceful living or a smooth sale, entrust your case to professionals.

ARROWS, a Prague-based law firm, will assess your case and propose the most effective strategy for legalisation or defence (office@arws.cz).

FAQ – Most common legal questions 

1. Can the Building Authority prohibit me from living in my own non-residential premises?
Yes. Ownership does not entitle you to breach public law. If the premises are approved as a storage space, the authority may prohibit you, by an official decision, from living there under threat of enforcement and fines.

2. How much does legalisation (change of use) cost?
Administrative fees are typically in the range of a few thousand Czech crowns. Design documentation and expert reports (fire safety, noise) usually cost CZK 20,000–60,000. If construction alterations are required, the costs increase. Legal representation is priced individually depending on complexity under Czech legislation. Email us at office@arws.cz for a non-binding estimate.

3. Is VAT payable when converting a non-residential unit into an apartment?
If a residential unit up to 120 m² is created (social housing under Czech VAT rules), a reduced VAT rate may apply to construction works (currently 12%). For non-residential premises, the standard rate is 21%. Proper project structuring can therefore save significant amounts.

4. Can I register permanent residence in a non-residential unit?

The population register and Czech building law are two different matters. The population registry office will often register your permanent residence if you prove ownership or a right of use (including for a studio/atelier). However, this does not legalise the use from the perspective of the Czech building authority. On the contrary, having permanent residence registered in an “office” is clear evidence of an administrative offence for the building authority.

5. What if the building is located in an area where the zoning plan does not allow housing?
If the land is designated, for example, for industrial production, legalisation as a residential unit is not possible until the municipality’s zoning plan in the Czech Republic is amended. In such a case, a thorough zoning plan analysis is required, which we can arrange for you.

Notice: The information contained in this article is of a general informational nature only and is intended for basic guidance. Although we strive for maximum accuracy, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS, a Prague-based law firm, directly (office@arws.cz). We accept no liability for any damages or complications arising from the independent use of the information in this article without our prior individual legal consultation and professional assessment. Each case requires a tailored solution, so please do not hesitate to contact us.

Read also:

• Changing the Use of Property in Czechia: Procedure Under the New Building Act
• Amending Zoning Plans Under the New Czech Building Act
• Legal and Hydrogeological Requirements for Construction in the Czech Republic
• Amending Declarations of Ownership in Czech Residential Co-ownership
• Legal Framework and Risk Management for Real Estate Development in Czechia