Some self-employed people consider using their home for business: these are the requirements

Starting a business generally requires prior planning. But if it will be done in a place that is initially considered as home, depending on the type of activity that will be done, aspects such as safety, accessibility, regulations and other specific aspects ensure compliance with regulations and the well-being of those who use the space.

This process requires careful planning and coordination with local government to obtain the necessary approval and avoid possible legal problems.

The Madrid real estate company, specialized in renting and selling premises, Localia, explains two situations where aA self-employed person can set up a house for business.

Part of the house can be used for business without losing residential status.

First of all, if you want to use a specific space in the home for business, you need to do it through “professional office”, i.e. the type of permit that is established in households where A small space is reserved in the house for the provision of services. “The most common are in the style of psychological or medical consultations,” explains expert Pablo Peñataro.

Can you have premises without losing your residential status? According to the technical building code, which sets the basic conditions for the place to be accessible and habitable, a specific space, specific height and adequate lighting and ventilation systems are required for the house to be considered as such. For a house to be livable, it must have at least 25 square metersso it is essential to ensure that you properly comply with these terms.

Because a specific part of a personal house is allocated, Not all types of business are allowed“It is up to the local city council to introduce this rule, but generally the bans would apply to businesses that involve a large influx of people in a small space.’

The first step to converting a house into premises is obtaining permission from the city council

In the case of converting the entire house into spaces, Pablo Peñataro explains that from his experience in the capital, the first step to complete apply for permission from the Madrid City Council or through ECU (entities cooperating on spatial planning)which are private mechanisms that have authority to implement granted by the city council verification, inspection and compliance control in the field of urban planning.

The The rates payable depend on several factors and are priced according to the type of work that needs to be done and the type of use or activity required. Madrid City Council makes it easy price table for consultation.

It is also necessary when furnishing a house for commercial use generation of technical documentation, especially in the form of a technical memory. “This document is essential because it details the activity to be performed and provides technical information for the authorization and security of the business,” says Peñataro.

The technical report presents key points related to construction and operation of the space. For example, in the case of reform projects, it is absolutely necessary specify what type of machinery will be used and for what purpose. It must be clearly and in detail addressed how the activity will be carried out, including specific measures for emergency situations. In this sense, it is necessary to consider, for example, the evacuation route in case of fire or other emergency situations.

In addition, it must also contain a technical report aspects such as lighting and strategic placement of fire extinguishersessential elements for security in every business.

Types of licenses a self-employed person needs to consider in order to run a home business

Once ECU authorization is granted, the next step follows apply for the licenses and permits that the self-employed person will need to enable housing as premises, which may vary depending on location and type of business. However, the expert shows some of the most common licenses and permissions depending on the situation:

  • Approval permit: This authorization is issued by local authorities and must ensure that the property meets the safety and regulatory requirements necessary for the intended activity.
  • Commercial license: In establishments such as retail stores or hair salons, it is necessary to obtain this type of business permit, which authorizes a self-employed person to run a business in a given location.
  • Land use permit: In this case, the specific use of the property is permitted in accordance with the zoning code of the area in which it is located. The best example of this type of permit would be a restaurant in a particular residential area.
  • medical leave: This license is for businesses that include food, health services or certain professional services such as restaurants, bakeries, dental clinics or beauty salons.
  • Retail and special license for the sale of alcohol: If you plan to sell products of any kind, you need a sales license for businesses such as clothing stores, electronics stores, or toy stores. For businesses that involve alcohol, such as bars or liquor stores, a special license is required.
  • Parking permit: Localia points out that it is not mandatory to have a garage, which happens in the opposite case: when moving from a building to a residence. But if a self-employed person wants to provide parking for their clients, it is a condition to have a parking permit.

The expert stresses that it is essential to contact local authorities and that legal counsel can also be of great help to ensure that you comply with all local regulations.

The most common businesses and those that are prohibited in the home

Pablo Peñataro comments It is most common to find houses converted into spaces on the upper floors., usually occupying the first three floors of a building. “They’re usually not at street level, because these places are usually originally zoned as commercial spaces.” Common uses of these spaces include law offices or professional offices that do not require a large influx of peoplesuch as psychology or administration, the real estate agency points out.

IN low levelwhich is at street level, is where restaurants and shops of various types are commonly located, as this location is “easiest to see from the street” and also the easiest to implement to establish businesses.

Peñataro claims it There is no list of “prohibited” business types., because everything will depend on how the building is classified. Most buildings are usually residential, but there may occasionally be workshops and “the possibility of setting up a workshop will depend on the specific categorization of the building”. To know if it is feasible, the expert says it is necessary analyze each case, consult with the department of spatial planning and review information from the cadastre and above all to know the rules of the community of neighbors of the building.

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