Changes in the regulation of tourist apartments in Madrid could affect thousands of residents and property management companies. The new requirements, introduced by the regional government, are aimed at strengthening oversight of this market and protecting the interests of neighbors. Responsibility for legalizing operations now falls not on homeowners but on the companies that manage short-term rentals. This decision may shift dynamics in the market and influence the number of legal listings.
According to El Pais, Madrid authorities plan to ban tourist rentals in state-protected apartments as well as in buildings where most residents oppose such activity. This means residents will be able to influence what happens in their buildings if a decision is made at the homeowners’ meeting. At least 60% of owners must support the move, in line with national regulations.
Company accountability
Under the new rules, management companies—not apartment owners—will be responsible for submitting a declaration of activity. This change frees homeowners from direct legal liability for violations related to tourist rentals. Now, all compliance issues and possible sanctions will be directed at the companies managing tourist accommodations.
This approach could lead to a reduction in illegal listings, as management companies will be required to more closely monitor properties for compliance. At the same time, according to El Pais, a significant number of apartments in the region are still being rented out without official registration. Only 10% of all properties, as of last year, were registered.
Restrictions and new standards
Authorities are also introducing additional standards for tourist apartments. These include minimum room sizes, a maximum number of residents, and mandatory basic furnishings and kitchenware. All properties must obtain a suitability certificate, which is expected to improve service quality and guest comfort.
Municipalities are given the right to set limits on the number of tourist apartments within individual buildings or areas. This will help regulate the concentration of such properties and ease pressure on local infrastructure. However, if an apartment has a separate entrance from the street and does not use shared spaces, it may be exempt from some restrictions, providing additional opportunities for owners.
The issue of the illegal market
Despite tighter controls, the issue of illegal tourist apartments remains relevant. According to El Pais, fewer than 10,000 properties are officially registered in Madrid, while the number of illegal listings exceeds 15,000. Authorities regularly conduct inspections and shut down violations they uncover, but a complete solution has yet to be achieved.
Last year, following a series of inspections, more than 3,000 apartments were closed, but the market quickly recouped these losses due to new listings. A 17.5% decrease in illegal properties over the past year indicates some progress. However, experts note that effective control requires a comprehensive approach and cooperation across all levels of government.
Context and recent developments
In recent years, Spain has tightened regulations on short-term housing rentals. Barcelona and the Balearic Islands already enforce limits on the number of tourist apartments and have requirements for management companies. Some regions are introducing moratoriums on new licenses to ease pressure on the long-term rental market and protect local residents. Similar measures are being discussed in other major Spanish cities, where the growth of tourism is pushing up housing prices and causing conflicts between neighbors and tenants.
