The Spatial Planning Act (SPA) is a piece of legislation that has been most frequently amended in Bulgaria. The latest Act amending the SPA was promulgated in State Gazette, issue # 16 of February 23, 2021, bringing in many novelties. One of the amendments that has aroused great interest is related to the status of studio apartments. New provisions related to the studio apartments have been added in p.29 and p. 29a of § 5 of the Additional Provisions to the Spatial Planning Act
29. ‘Residential building’ shall mean a building intended for permanent residence and comprising one or more dwelling homes which account for at least 60 per cent of the total floor area of the building. Studio apartments shall be considered to be dwelling homes when determining the intended use of the building.
29а. ‘Mixed-use building’ shall mean a non-residential building comprised of separate units of various intended uses, and if the building includes any dwelling homes – these shall account for less than 60 per cent of the total floor area of the building. Studio apartments shall be considered to be dwelling homes when determining the intended use of the building.
These amendments have provoked many questions, including:
Are studio apartments required to comply with the requirements for having certain rooms which dwelling homes are required to have?
The answer can be found in the SPA and in the Ordinance № 7 of 22 December 2003 on the rules and regulations for the development of individual types of territories and development areas. The legal definition of a ‘dwelling home’ can be found in p. 30 of §5 of the Additional Provisions to the Spatial Planning Act – “a set of rooms, indoor and/or outdoor open spaces united functionally and spatially in one housing unit”. There is no legal definition of a ‘studio apartment’, although it can be derived from the Art. 38 of the SPA that a studio is a room for individual creative activities. The above Ordinance includes requirements for dwelling homes in connection with the indoor area distribution, however, these requirements do not specifically apply to studio apartments. For example, a dwelling home is supposed to have a kitchen or kitchenette, and at least one storage room inside or outside the home. Regarding the design of a studio apartment, no such requirement existed either prior to the above amendments to the Additional Provisions of the SPA, nor after the amendments became effective. Therefore, as a result of these amendments to the SPA, it is not possible to equate a dwelling home with a studio apartment. The latter two can be presently equated only for the purpose of determining the intended use of the building.
Is there an obstacle to declaring a studio apartment as a “main place of residence”?
One tax relief that a studio apartment owner is entitled to is the relief for a dwelling home which has been the owner’s main residence. According to § 1 of the Additional Provisions of the Local Taxes and Fees Act (LTFA) “the main residence is a real estate property that serves to meet the housing needs of a citizen and their family members during the majority of the year” If you are using a studio apartment for residential needs, this is exactly the definition you need to know in order to determine whether you have the right to declare the studio apartment as your main residence. This is an important question because a positive answer to it will make you entitled to tax relief. According to Art. 25, para. 1 of the LTFA “a 50 per cent tax reduction is provided for a real estate property that is used as a main residence”. It can be concluded from the applicable provisions that the only requirement is that the dwelling home be a real estate property, which the studio apartment undoubtedly is. Therefore, despite the amendments to the SPA, there is no obstacle for you to pay 50 per cent of the tax due for a studio apartment which is your main residence.
Is it possible to use a studio apartment as a “family home” in case of a divorce?
It is especially important whether the studio apartment meets another key definition, i.e. that of a family home, in case of a divorce. The reason is that according to the Art. 56 of the Family Code (FC) the family home can be given for use to one of the former spouses following a divorce. There is no obstacle to giving a studio apartment for use, as it is possible that the studio apartment had been used by the spouses as a “family home”. This conclusion can also be reached based on the legal definition of “family home”, which is included in § 1 of the Additional Provisions of the FC and states that this is “a dwelling home inhabited by both spouses and/or their minor children”. The only requirement that the studio apartment will have to meet in order to be given for use to one of the former spouses after the divorce is that the studio apartment has been used as a dwelling home. What matters here is what the studio apartment was actually used for, and not whether the studio apartment meets the requirements of the SPA or of any other regulations. Regardless of which situation you find yourself in, you can contact our team to make sure that your behavior complies with the legal requirements. We will discuss your case together and reach the optimal solution for you.
