The Madrid City Council has made significant strides in its ongoing battle against illegal holiday rentals. Over the past 18 months, approximately 500 tourist apartments operating without proper municipal authorisation have been shut down, according to Borja Carabante, the city’s Urban Planning Delegate.
The success of this crackdown can largely be attributed to the introduction of stricter penalties. Under the new measures, property owners who continue to rent out unlicensed tourist accommodations face fines of up to €190,000. This substantial financial threat has proven effective in deterring many landlords from continuing their illegal activities. The primary aim of these stringent regulations is to reduce the number of illegal holiday rentals. Furthermore, to improve community relations in residential areas and ensure that housing remains affordable for Madrid’s residents.
Despite these efforts, the issue of illegal holiday rentals remains a significant challenge in the Spanish capital. City officials estimate that over 12,000 tourist apartments are still operating without the required licenses.
New regulations on the horizon
To tackle this ongoing problem, the Madrid City Council is working on new legislation that will further regulate the market. Among the proposed changes is a restriction on converting commercial properties into tourist accommodations, particularly in the city’s central district. The council is also considering concentrating tourist rentals in specific buildings. Herewith, it is aiming to contain their impact on residential neighbourhoods. Additionally, the current suspension on issuing new licenses for tourist rentals will remain in place until the new regulations are finalised and enacted.
The measures taken by Madrid reflect a broader trend across Europe, where cities are grappling with the impact of short-term holiday rentals on local housing markets.
Mallorca also tightens penalties
Madrid’s actions are part of a broader effort across Spain to regulate the holiday rental market more strictly. In a similar move, Mallorca has doubled its fines for illegal tourist rentals to €80,000, with penalties now ranging from €40,000 to €400,000. The island’s council aims to discourage illegal rentals and protect legitimate tourist accommodations, following concerns about unfair competition and social harmony. The Consell de Mallorca has also mandated the cessation of illegal activities once penalties are initiated, further strengthening enforcement measures.
These coordinated efforts across Spain highlight the increasing determination to address the challenges posed by unregulated holiday rentals and to ensure a fair and sustainable tourism industry.
No water for illegal holiday rentals in Sevilla
De Sevilla City Council takes an even more drastical approach: it announced plans to cut off water supply to approximately 5,000 illegal tourist apartments. This measure is part of a broader effort to crack down on unlicensed holiday rentals in the city. The initiative aims to address the growing problem of unregulated tourist accommodations. These have been contributing to housing shortages and rising rents for local residents. By targeting these illegal operations, the city hopes to restore balance to the housing market and ensure that tourist accommodations operate within the legal framework.