Tourist Housing Regulations in Madrid

In this post, we tell you everything you need to know about the tourist housing regulations in Madrid, both in the Community and in 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 Spanish government 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 Housing Legislation in Madrid

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

• Special Accommodation Plan of the Madrid City Council [PDF]
• Decree 79/2014, which regulates tourist apartments and tourist use homes 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 autonomous legislation – which you must comply with – you can add additional clauses in 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 distribution of responsibilities
• Check-in and check-out times
• Bonds and security deposits

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

Differences between Tourist Use Housing (VUT) and tourist apartment according to the Community of Madrid

Article 2 of Decree 79/2014 defines two similar concepts (tourist use housing and tourist apartment) that are decisive when it comes to knowing which tourist housing legislation in Madrid affects you:

Tourist Use Housing (VUT): "Flats, studios, apartments or houses that, habitually, furnished and equipped for immediate use, are marketed and promoted through tourist offer channels or by any other marketing or promotion method, to be fully leased for tourist accommodation purposes and in exchange for a price, are considered tourist use housing."

Tourist Apartments (AT): "Tourist apartments are considered to be properties made up of complex accommodation units, equipped with facilities, equipment, and services for immediate occupancy, habitually intended by their owners or representatives for occasional tourist accommodation, without the character of permanent residence for users, for a price and complying with the principle of operational unity."

That is, while tourist use housing can be located in residential buildings, tourist apartments are made up of properties 100% dedicated to vacation housing. According to Madrid regulations, for example, a block of apart-hotels would be classified as a tourist apartment. Whereas renting a flat on Airbnb in a residential block would fall under Tourist Use Housing.

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

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

• To be furnished and equipped for immediate use.
• To be marketed and promoted through tourist offer channels or by any other marketing or promotion method.
• To habitually carry out tourist activity.
• To be leased in its entirety.
• To be leased for tourist accommodation purposes.
• To be marketed and promoted for profit.
• To have a Certificate of Suitability for Tourist Use Housing (hereinafter, CIVUT).

Although the legislative modification of 2019 did not define what it considers "tourist offer channels" (Is Airbnb one or only traditional OTAs?) it did elaborate on the definition of "habitually carrying 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 on tourist housing 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 submits the mandatory Responsible Declaration of commencement of activity provided for in articles 11 and 17.

Tourist offer channels

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

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

Incompatibility of Tourist Use Housing and habitual residence

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

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

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

Acting 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 Housing in Madrid

The Certificate of Suitability for Tourist Use Housing replaces the old habitability certificate or first occupancy license, after the modification of the tourist housing legislation in Madrid.

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

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

Requirements for the tourist use housing certificate

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

Prohibitions and exclusions of tourist housing legislation in Madrid

Seasonal rental

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

Tourist room rental

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