Tourist Accommodation Regulations in Madrid

In this post, we tell you everything you need to know about the tourist accommodation regulations in Madrid, both in the Community and the City Council. It is updated with the latest legislative changes from the Madrid City Council and the modifications to decree 79/2014 by the Community of Madrid.

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Measures for the reduction of SARS-CoV-2 coronavirus contagion

The pandemic has put owners of tourist apartments worldwide on the ropes. The government of Spain had to establish measures for the reduction of SARS-CoV-2 coronavirus contagion. We also need to be aware of the current situation to know what restrictions may be imposed in the autonomous community.

Tourist Accommodation Legislation in Madrid

It is advisable to have at hand the legislation regarding tourist accommodation in Madrid:

• Special Accommodation Plan of the Madrid City Council [PDF]
• Decree 79/2014, which regulates tourist apartments and tourist use dwellings in the Community of Madrid. Partially modified by decree 29/2019, of April 9 [PDF]
• Law 1/1999, of March 12, on Tourism Planning of the Community of Madrid

In addition to this community and regional legislation – which you must comply with – you can add additional clauses to the tourist rental contract you make with your guests. Contracts are law between the parties, so both you and your guest will be obliged to comply with the agreed requirements. Among them, you can agree on:

• Booking and cancellation policy
• Penalties in case of cancellation
• Repairs and division of responsibilities
• Check-in and check-out times
• Bonds and security deposits

In our information centre on tourist accommodation legislation you can find more details about regulations in other cities.

Differences between Tourist Use Dwellings (VUT) and tourist apartments according to the Community of Madrid

In Article 2 of Decree 79/2014, two similar concepts are defined (tourist use dwellings and tourist apartments) which are decisive when it comes to knowing which legislation on tourist accommodation in Madrid affects you:

Tourist Use Dwelling (VUT): "Are considered tourist use dwellings those flats, studios, apartments or houses which, on a habitual basis, furnished and equipped in conditions of immediate use, are marketed and promoted through tourist offer channels or by any other means of commercialisation or promotion, to be let in their entirety for tourist accommodation purposes and for a price."

Tourist Apartments (AT): "Are considered tourist apartments properties made up of complex accommodation units, equipped with facilities, equipment and services in conditions of immediate occupancy, habitually intended by their owners or representatives for occasional tourist accommodation, without having the character of permanent residence for users, for a price and that comply with the principle of unit of exploitation."

That is to say, while tourist use dwellings can be located in residential buildings, tourist apartments are made up of properties 100% intended for holiday homes. According to Madrid regulations, for example, a block of aparthotels would be categorised as a tourist apartment. Whereas renting a flat on Airbnb in a residential block would fall under a Tourist Use Dwelling.

Legal requirements for Tourist Use Dwellings (VUT) in the "Airbnb law" of Ahora Madrid

Therefore, we are narrowing down the area of influence of legislation regarding tourist accommodation in Madrid. The legal requirements set out in Decree 79/2014 are:

• Be furnished and equipped in conditions of immediate use.
• Be marketed and promoted through tourist offer channels or by any other means of commercialisation or promotion.
• Routinely carry out tourist activity.
• Be let in its entirety.
• Be let for tourist accommodation purposes.
• Be marketed and promoted for profit-making purposes.
• Have a Certificate of Suitability for Tourist Use Dwelling (hereinafter, CIVUT).

Although the 2019 legislative modification did not define what it considers "tourist offer channels" (Is Airbnb one or just traditional OTAs?) it did elaborate on the definition of "routinely carry out tourist activity" – and in fact, changed the definition proposed in the 2014 decree.

Habitual exercise of tourist activity: from 3 months a year to a responsible declaration

Before the 2019 legislative reform regarding tourist accommodation in Madrid, habituality was defined as carrying out the activity (tourist rental) for more than 90 consecutive days in a calendar year.

Currently, it is defined as:

The tourist accommodation activity is habitually carried out from the moment the interested party advertises by any means and presents the mandatory Responsible Declaration of initiation of activity as provided for in articles 11 and 17.

Tourist offer channels

The appearance of the term tourist offer channel is a replica of the Urban Leases Law, which we already discussed in the post about differences between tourist use housing rental and seasonal rental. Although the drafts presented in 2017 detailed what tourist offer channels were, the final version of the tourist accommodation legislation in Madrid does not.

Taking into account the broadest meaning of the term, it makes sense to include in these channels travel agencies, central reservation systems, as well as intermediation portals (HomeAway, Booking or Airbnb) as well as any other advertising carried out in any medium.

Incompatibility of Tourist Use Dwelling and habitual residence

Article 6 of Decree 79/2014 is clear on the matter:

Tourist apartments and tourist use dwellings, as types of tourist accommodation, may not be used by users as a permanent residence, nor for any other purpose different from their tourist use.

It should be noted that this incompatibility is for the user – not the owners. What does this mean? That your clients will not be able to live permanently in your property. However, you, as the owner, will be able to use it for that purpose.

Going against this measure will constitute a very serious infraction, punishable by fines from €30,001 to €300,000.

The Certificate of Suitability for VUT or Tourist Use Dwelling in Madrid

The Certificate of Suitability for Tourist Use Dwelling replaces the old occupancy certificate or first occupation licence, after the modification of the tourist accommodation legislation in Madrid.

Who issues the certificate of suitability for tourist use dwellings? Only those in possession of the qualifying title of architect or technical architect can issue it.

When must it be issued? The technician will issue it after a physical inspection of the property.

Requirements for the tourist use dwelling certificate

• Working heating, hot and cold water supply, and sufficient energy sources.
• Direct ventilation to the outside or to an uncovered patio.
• Manual extinguisher no more than 15 metres from the exit.
• Basic emergency signage.
• Evacuation plan for the dwelling building

Prohibitions and exclusions of tourist accommodation legislation in Madrid

Seasonal rental

According to the Urban Leases Law, the tourist accommodation legislation in Madrid excludes seasonal rentals.

Tourist room rental

Decree 79/2014 removes the reference to tourist room rentals. Therefore, the relationship between client and provider in these cases will be governed exclusively by the contract between the parties.