Published on: 23/05/2025 Updated on: 05/08/2026
Madrid is one of Europe’s most important tourist destinations and, over the past decade, renting homes to tourists has boomed on the back of platforms such as Airbnb, Booking and Vrbo. That growth came with a downside: pressure on housing prices, residents being pushed out of the most strained neighbourhoods, and coexistence conflicts. In some districts of the city centre, the share of homes used for tourism exceeded 10 % of the residential stock.
Against that backdrop, Madrid City Council approved the Plan Reside, the planning instrument that now sets the rules for tourist-use dwellings (VUT) in the city. But the Plan Reside does not operate alone: it sits within a three-tier framework — municipal, regional and national — that has changed substantially between 2024 and 2026. This guide explains what the rules actually say today and what they mean for owners, managers and investors.
Contenido
The Plan Reside is a specific amendment to Madrid’s General Urban Development Plan (PGOU) of 1997, aimed at protecting and improving residential use. Because it is a planning rule, it changes land-use compatibility conditions: it defines in which buildings and in which areas a tourist-use dwelling may legally be established.
It replaces the previous Special Accommodation Plan (PEH) of 2019, whose system of concentric “rings” proved complex and, in practice, ineffective at curbing the spread of tourist apartments.
The dates matter, because they determine which regime applies to each file:
Its entry into force also lifted the suspension of licences and responsible declarations that had been in place since 25 April 2024. In other words, there is no moratorium today: what there is instead is a far stricter land-use regime.
Note: the plan has been challenged in court. The Plan Reside was appealed before the High Court of Justice of Madrid and the appeal was admitted for processing. Until there is a ruling the plan applies in full, but it is worth following the litigation before committing to long-term investments.
According to the municipal assessment updated in October 2024, Madrid had 17,360 tourist establishments, of which 92.7 % were tourist apartments (around 16,100) and only about 7 % held a licence (roughly 1,200). In the central district, around 6,700 VUT were estimated, with a similar level of compliance. That gap between actual and lawful activity is the root of the Plan Reside’s approach.
If you already knew the Plan Reside, these are the four developments to keep on your radar:
The Urban Planning department’s stated aim is for tourist apartments to continue existing in the city, but without displacing residents.
The plan simplifies the previous regulation (which worked through “rings”) and establishes two clearly differentiated areas:
It covers neighbourhoods such as Sol, Palacio, Cortes, Embajadores (Lavapiés), Justicia (Chueca), Universidad (Malasaña), La Latina and Huertas, among others.
The rule is set by the new article 7.6.3 bis of the Planning Regulations, and its core message is clear: “scattered” tourist apartments coexisting with residents’ homes in the heart of Madrid are being phased out. As a general rule, tourist activity is only allowed in entire buildings of exclusive use.
That said, it is not an absolute ban: the regime depends on the land-use level of the plot (A, B, C, D or E) and on the building’s heritage listing. In summary:
The full detail sits in the municipal document “Criteria for the establishment of tertiary accommodation use”, which is worth checking case by case before buying or renovating.
In districts such as Chamberí, Salamanca, Retiro, Chamartín, Tetuán, Arganzuela, Carabanchel, Usera or Latina, VUT remain possible, subject to the applicable zonal rules and ordinances, plus one significant novelty that did not exist under the 2019 PEH:
Be careful: being outside the centre is not a free pass. Each zonal rule has its own conditions.
In the historic centre and along the city’s main commercial corridors, it is prohibited to convert ground-floor retail premises into housing or tourist apartments, in order to preserve neighbourhood retail.
The plan is not only restrictive; it includes measures to convert land back to housing:
This is the most important development of 2026 and the one that most affects owners day to day. Decree 27/2026 of 25 March (BOCM of 6 April 2026, in force since 26 April 2026) amends the long-standing Decree 79/2014 to align it with case law from the High Court of Madrid and with reforms to the Horizontal Property Act. Main changes:
Adaptation period: VUT and tourist apartments that had already started operating under a responsible declaration have three years to comply with the new requirements, and may request a waiver of some of them. Careful, though: if a substantial refurbishment is carried out before that period ends, compliance becomes immediate.
Practical takeaway: in the city of Madrid you need two separate things, from two different authorities. First, compliance with the regional regime (responsible declaration, CIVUT and community approval). Second, the municipal planning permit under the Plan Reside. Neither replaces the other.
Madrid City Council does not have a penalty regime specific to VUT. Instead, it applies general planning and administrative law. When it detects an irregular VUT that cannot be legalised, it orders the activity to cease and, if that order is ignored, it imposes penalties under article 204 of Law 9/2001 of 17 July, on Land in the Region of Madrid, which classifies as a serious offence the establishment of a use incompatible with applicable planning.
The scale the council has been applying since the 2024 action plan is cumulative:
Combined, the amounts can approach €190,000. It is worth clarifying that the coercive fines of €1,000, €2,000 and €3,000 often quoted correspond to the regime before the 2024 tightening, not to current practice.
On top of this come the civil-law consequences: where horizontal property rules are breached, the association can demand cessation and take legal action, as well as impose the surcharges mentioned above.
Between January and February 2026 the High Court of Justice of Madrid issued a series of rulings — led by the judgment of 26 January 2026 from the Second Section of its Administrative Chamber — annulling €30,001 penalties imposed by the City Council.
The reasoning: accommodation use is a compatible use subject to conditions of establishment across much of the city. Lacking independent access breaches a technical condition that prevents a licence being granted, but it does not turn the use into an “incompatible” one. Applying article 204.3.b) in those cases amounts to an extensive reading of a penalty provision, contrary to the principle of legal certainty in article 25.1 of the Spanish Constitution.
What this means for you: if you have received a penalty for “incompatible use” whose only basis is the absence of independent access, or if the file was served years after the inspection, it is worth reviewing it with a planning-law specialist. That said, these rulings do not legalise unlicensed activity: the cessation order remains valid and the administration can re-route the penalty procedure.
In parallel, the council increased its inspection staff by 15 % and publishes an official list of licensed VUT, which makes irregular activity easier to detect.
The Plan Reside represents a paradigm shift for owners. It is now essential to:
This is one of owners’ biggest concerns. The short answer: recognition as an “existing use” is not an unlimited right.
The Plan Reside recognises as an existing use any activity established under a valid permit predating its entry into force, and those dwellings may in principle continue. However, that recognition does not cover expansion or indefinite continuation. Refurbishments, extensions or transfers of the property may trigger a fresh assessment and require compliance with the current regime, particularly in the historic centre.
If a VUT shares a building with residential use and does not meet the new requirements, it may cease to be compatible, and the council could revoke the authorisation.
At regional level, the three-year period under Decree 27/2026 applies for adapting to the new technical requirements — or immediately if a substantial refurbishment is carried out. And under civil law, the reform of the Horizontal Property Act is not retroactive for those already operating lawfully before 3 April 2025.
Dwellings that already held a tourist licence in Madrid before the new rules came into force can continue operating, although they must adapt to the new coexistence and control requirements. If problems arise with the association, they may be subject to review.
If you own (or plan to own) a tourist dwelling in Madrid, this is the logical order of checks:
In a residential building, as a general rule no. It is only possible in buildings of exclusive use and, in certain cases involving listed buildings, under a temporary 15-year authorisation tied to refurbishment works.
No. The suspension in place since April 2024 was lifted when the Plan Reside came into force in September 2025. What applies now is the new land-use compatibility regime.
It is the suitability certificate for tourist-use dwellings reintroduced by Decree 27/2026. It is issued by a competent qualified technician after visiting the property.
Yes, with the three-fifths majority provided for in the Horizontal Property Act. And unless you were already operating lawfully before 3 April 2025, you also need its express authorisation to start.
Technology is your best ally for complying with the regulations. Solutions such as Check-in Scan let you register guests automatically, meet your legal obligations and keep full control over your property. That way you avoid legal problems and improve the guest experience.
If you own a tourist apartment in Madrid, comply with the regulations, manage your guests safely and avoid legal problems with Check-in Scan’s online check-in.
Madrid’s tourist apartment rules and the Plan Reside reinforce how important it is to manage your accommodation professionally and lawfully. Adapting is the only way to avoid penalties and secure the profitability of your properties.
