The Madrid authorities have approved new regulations that significantly change the rules for tourist apartment rentals in the capital. According to the adopted plan, opening apartments for short-term tourist rentals is now prohibited in residential buildings in the historic city center. This decision aims to preserve housing stock and ensure comfortable conditions for permanent residents.
The document, called Plan Reside, will take effect in the coming days after its publication in the official bulletin. The main objective of the changes is to support the city’s residential function and create more transparent conditions for the tourist business, in order to prevent conflicts between residents and visitors to the capital.
The new restrictions apply to a clearly defined perimeter of Madrid’s historic center. Within this area, tourist apartments are not allowed in residential buildings, even on the ground floor. The only exception is for buildings that were not originally intended for housing—for these, tourist apartments are permitted without restrictions.
If a residential building is designated as a protected site and is located on a street not intended for commercial activity, temporary conversion to tourist accommodation is allowed for up to 15 years. However, restoration and repair work on the building is a mandatory condition. After this period, the property must return to residential use.
Outside the historic center, the regulations are less strict. Here, tourist apartments are permitted both in separate buildings and in individual apartments within residential buildings. However, these properties are now required to have a separate entrance at ground level or on the first floor, a measure aimed at minimizing inconvenience for permanent residents.
The authorities have also introduced a range of incentives for property owners. For example, outdated private infrastructure facilities may be converted into rental housing or shared living spaces (coliving), provided their architectural value is preserved and restoration is carried out. There are about 210 such buildings in the city center that could be refurbished under the new rules.
Special attention is being paid to the conversion of commercial premises. From 2015 to 2024, more than 3,000 commercial properties in Madrid were transformed into residential apartments and tourist accommodations. The new plan prohibits such conversions in the historic center, as well as on several key streets outside of it. This measure aims to help preserve traditional shops and services in the city’s central neighborhoods.
The list of streets where the conversion of commercial spaces into housing or tourist apartments is prohibited includes major thoroughfares such as Bravo Murillo, López de Hoyos, Clara del Rey, Cartagena, Alcalá, as well as other large avenues and streets in various neighborhoods of the city.
According to the latest data, there are more than 17,000 tourist accommodations in Madrid, the vast majority of which are short-term rental apartments. However, only a small portion of them operate legally. The new regulations aim to legalize the market and improve the quality of life for city residents.
Overall, Madrid authorities hope that the new measures will balance the interests of residents and tourists, preserve affordable housing, and support the city’s traditional way of life.
