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 of the Madrid City Council and the modifications of the Community of Madrid of decree 79/2014.

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Measures to reduce the contagion by the SARS-CoV-2 coronavirus

The pandemic has put the owners of tourist apartments in the whole world against the ropes. The government of Spain had to establish some measures to reduce the contagion by the SARS-CoV-2 coronavirus. We also have to be aware of the current situation to know what restrictions they can impose on the autonomous community.

Tourist Housing Legislation in Madrid

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

• Special Hosting Plan of the Madrid City Council [PDF]
• Decree 79/2014, regulating 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 Regulation 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 agreement you make with your guests. The contracts are law between the parties, so both you and your guest will be obliged to comply with the requirements you agree on. Among them, you can agree:

• Reservation and cancellation policy
• Penalties in case of cancellation
• Repairs and distribution of responsibilities
• Check-in and check-out hours
• Bonds and security deposits

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

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

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

Tourist Use Housing (VUT): "Those apartments, studios, apartments or houses are considered tourist use housing which, on a regular basis, furnished and equipped for immediate use, are marketed and promoted on tourist supply channels or by any other means of marketing or promotion, to be leased in their entirety for tourist accommodation purposes and in exchange for a price."

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

That is, while tourist use dwellings can be located in residential buildings, tourist apartments are made up of properties destined 100% for vacation housing. According to Madrid regulations, for example, a block of apartment hotels would be classified as a tourist apartment. While renting an apartment in a residential block on Airbnb would fall within a Tourist Use Dwelling.

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

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

• To be furnished and equipped for immediate use.
• To be marketed and promoted through tourist supply channels or through any other means of marketing or promotion.
• To carry out tourist activity on a regular basis.
• To be ceded in its entirety.
• To be ceded for tourist accommodation purposes.
• To be marketed and promoted for profit.
• Having a Certificate of suitability for Tourist Use Housing (hereinafter, CIVUT).

Although the 2019 legislative amendment did not define what is considered "tourist supply channels" (Is Airbnb one or just traditional OTAs?) it did abound in the definition of "to carry out tourist activity on a habitual basis" - and in fact, it changed the definition proposed in the 2014 decree.

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

Before the legislative reform on tourist housing in Madrid in 2019, habituality was defined as the exercise of the activity (tourist rental) for more than 90 consecutive days per natural year.

At present, it is defined as:

The tourist accommodation activity is carried out on a habitual basis from the moment the interested party advertises by any means and submits the required Responsible Declaration of commencement of activity provided for in Articles 11 and 17.

Tourist supply channels

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

Taking into account the broadest sense of the term, it makes sense to include in these channels both travel agencies, reservation centers, and 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 dwellings, as forms of tourist accommodation,cannot be used by users as a permanent residence, nor for any other 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 property. However, you, as the owner, will be able to use it for that purpose.

Going against this measure will be considered a very serious infringement, punishable by fines of 30,001€ to 300,000€.

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

The Certificate of Suitability for Tourist Use Dwelling 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 in possession of the enabling title of architect or technical architect can issue it.

When should it be issued? It will be issued by the technician after the on-site verification of the dwelling.

Requirements for the tourist use housing certificate

• Heating in operation, hot and cold water supply and sufficient energy sources.
• Direct ventilation to the outside or to an uncovered courtyard.
• Manual fire extinguisher within 15 meters of the exit.
• Basic emergency signage.
• Evacuation plan of the building of the dwelling

Prohibitions and exclusions of tourist housing legislation in Madrid

Seasonal rental

According to the Urban Rental Law, the tourist housing legislation in Madrid leaves out seasonal rentals.

Tourist rental by rooms

Decree 79/2014 eliminates the reference to tourist rental of rooms. Therefore, the relationship between client and supplier in these cases will be governed exclusively by the contract between the parties.