The rise of tourism in Madrid has led to a significant increase in the demand for temporary accommodations, prompting many property owners to consider renting out their homes as an option. However, this type of rental is not as simple as just posting an ad on a rental platform; there are legal and regulatory requirements that owners must meet to operate legally and responsibly. The requirements for renting vacation apartments in Madrid are regulated by the Community of Madrid and the City Council of Madrid, as well as state regulations, ensuring the protection of both tenants and owners. These requirements encompass legal, urban planning and technical aspects that tourist accommodations must fulfill.

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Tourist use license

Every property intended for vacation rental in Madrid must obtain a tourist use license or responsible declaration from the Directorate General of Tourism of the Community of Madrid. This process is essential to ensure that the property complies with the established legal and regulatory requirements for such activities. Additionally, it is mandatory to register the property in the Register of Tourist Activity Companies of the Community of Madrid. This registration guarantees transparency and regulation of tourist activities in the region. The registration number obtained must be visible in all ads and platforms where the property is offered, allowing potential tenants to verify the legality of the rental and reinforcing consumer confidence, while also helping to avoid potential penalties for operating without the necessary authorization.

Physical conditions of the property

The property must meet the minimum habitability conditions set by the Technical Building Code (CTE) and the General Urban Planning Plan of Madrid (PGOUM), which include several characteristics such as:

• Minimum area: the property must have a minimum usable area of 25 square meters.

• Ventilation: it's important that the main rooms have direct ventilation to the outside.

• Electrical and plumbing Installations: these must be in good condition and comply with safety requirements.

• Climate control: the property must have operational heating and air conditioning systems.

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Moreover, the property must comply with certain regulations related to access and safety, such as:

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• Entrance door: the door must open and close automatically to ensure the safety of visitors.

• Emergency exit: while not always mandatory in smaller properties, it is advisable for a technician to assess whether an emergency exit is required.

• Fire extinguishers and smoke detectors: installing smoke detectors and fire extinguishers is recommended, especially in properties with higher occupancy.

Zoning

The Special Plan for the Regulation of Lodging Use establishes that for an apartment to be rented out as a vacation property in central Madrid, it must be located in a building that has exclusively residential use. This means there can be no commercial or hospitality premises within the same building, a measure designed to preserve the quality of life for permanent residents. Central neighborhoods such as Sol, Gran Vía, Malasaña or Chueca are included in this regulation, aimed at preventing tourist saturation and excessive noise, aspects that often affect residents. The regulation also requires that tourists have independent access from that of the neighbors, contributing to more harmonious coexistence.

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In addition to protecting residents, this regulation promotes a more sustainable and responsible tourism model. Owners must ensure compliance with all established requirements, including obtaining the necessary license and registering the property. This not only allows them to operate legally but also helps build trust with tourists seeking authentic experiences in environments that respect the local community. In this context, complying with the Special Plan is not just a legal requirement, but an opportunity to contribute to the overall well-being of the city and its inhabitants.

Duration of stay

Vacation rentals are defined as those where the guests' stay is less than 31 days, allowing for a greater turnover of tourists. If a property is rented for more than 90 days a year, it is considered an economic activity and must meet the established requirements for tourist use properties, such as obtaining the corresponding license and registering in the Register of Tourist Activity Companies.

Community rules

It is essential that the vacation rental complies with the community rules established in the homeowners' association regulations, as these rules may prohibit or limit this type of activity. Additionally, the owner is responsible for ensuring that guests adhere to the noise regulations set by the City Council of Madrid, which includes maintaining an appropriate environment and avoiding disturbances to neighbors. Adhering to these regulations not only promotes peaceful coexistence but also protects the owner's investment and the property's reputation.

Taxes and fiscal regulations

Owners of vacation properties are required to declare the income generated from the rental to the Tax Agency (Agencia Tributaria), thereby ensuring compliance with tax regulations. Furthermore, if the rental includes additional services, such as cleaning or personalized attention, these may be subject to a VAT of 21%, which means owners must consider this tax burden when setting service prices and making tax declarations.

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Meeting these requirements is important to avoid future penalties, which can include significant fines or even the closure of the business if local or regional regulations are violated. To ensure full compliance, it is advisable to consult with a lawyer or a manager specialized in the Real Estate and tourism sector in Madrid.

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