What Is the Difference Between a Studio (Atelier) and an Apartment?
Act No. 72/1994 Coll., the Act on the Ownership of Apartments, defined an apartment (residential unit) as a room or set of rooms designated by the building authority for residential use, while a studio (non-residential unit) was defined as a room or set of rooms designated for purposes other than housing. However, this law was repealed on January 1, 2014, and replaced by the new Civil Code.
In practice, you often cannot tell the difference at first glance. The most common reasons why a unit is not approved as residential are excessive noise or insufficient natural lighting. However, under current standards, the majority of existing buildings — especially those in dense historic city centers or along busy roads — would no longer meet the strict criteria for residential classification.
What Are the Disadvantages of a Studio (Atelier)?
It is a well-known fact that in a studio, the owner or tenant cannot register permanent residence. Additionally, mortgage interest on the purchase of a non-residential unit cannot be deducted as a business expense, even if the property is financed through a mortgage loan.
Studios are not exempt from the real estate acquisition tax, so within three months of signing the purchase contract, the owner must pay 4% tax on the purchase price and provide an expert valuation report confirming the property’s value.
Furthermore, studios are less liquid assets — it is generally more difficult to find a buyer. They are also subject to the standard VAT rate of 21%, unlike apartments, which benefit from the reduced 15% VAT rate.
However, this can actually be an advantage for VAT payers, as the state effectively refunds more than one-fifth of the property’s value. Another benefit is the typically lower purchase price — about 10% less than comparable apartments — due to factors such as lower comfort standards (noise, lighting, etc.).
When it comes to financing, banks today no longer treat non-residential units as strictly as in the past. Obtaining a mortgage is usually not a problem, since the market rental income for a well-designed studio is comparable to that of a standard apartment.