No more new permits for tourist rentals in Madrid

by admin
tourist rentals in Madrid

Madrid is taking a drastic measure in the fight against the nuisance of tourist rentals: the city will no longer issue new licenses for tourist apartments until the new city plan is approved in 2025.

This was announced by the mayor of Madrid, José Luis Martínez-Almeida. The approval of the revision of the zoning plan is first awaited in the first quarter of 2025. This pause in licensing is effective immediately. The aim is to better monitor the balance between tourism and the daily lives of Madrid residents.

Strengthening enforcement

In addition, Madrid will tighten enforcement on illegal tourist rentals. The municipality is increasing the number of inspectors by 15% to 75 in order to tackle illegal practices more effectively. Although the opposition is convinced that this is insufficient. The city has also significantly increased fines for illegal tourist rentals. The first fine can now range from €1,000 to €30,000. For repeated violations, the fines can even increase to €100,000. These amounts will undoubtedly cause stress for many people. It is estimated that only 277 of the 24,000 tourist apartments in Madrid have a permit from the municipality to be legally rented out.

Cogesa Expats

Purpose of the measures

These measures are intended to reduce the pressure of tourist rentals on the housing market and improve the quality of life for the residents of Madrid. At the same time, the city is trying to find a balance that also does justice to the interests of the tourism sector. The city council emphasises that these measures must have a deterrent effect. They must not lead to profits that justify illegal activities.

As in many other cities, the number of tourist accommodations in the Spanish capital has grown significantly in recent years. Between March 2022 and March 2023 alone, this amounted to 4,500 units. On the rental platform, Airbnb, 45,543 tourist homes are advertised. The rapid growth of tourist accommodation, including holiday rentals, is raising concerns about the impact of mass tourism on historic city centres, possible gentrification and rising real estate prices.

Also read: Spain second largest tourist rental market in the EU

You may also like