New limitations on Tourist Housing in Madrid
May 21, 2024
New limitations on Tourist Housing in MadridMay 21, 2024 Last Thursday, April 25th, the Madrid City Council launched a new plan to regulate the Tourist Housing in the city due to the perceived saturation in the market, the proliferation of these dwellings outside the law, and the ineffectiveness of the plan promoted by the previous administration. Thus, the Council temporarily suspends the granting of new licenses and will tighten the inspection activity in the face of those owners who operate without authorization, among other measures. This initiative is motivated by the remarkable increase experienced by this type of accommodation in recent years. Since 2017, the supply of Tourist Housing in Madrid has increased by 41%, representing 65% of the total number of tourist places (including hotels, pensions, etc.) implemented in the same period, being, most of Tourist Housing, in irregular situation. According to an impact report promoted by the City Council, this growth has several consequences, including the reduction of the residential housing stock and the problems of coexistence that the proliferation of this type of housing generates with other residents, particularly in the Central district of the capital, where Tourist Housing represent 7.36% of the available housing, that is, 8.5 times more than the average for the rest of the city. It should be noted that, according to City Council estimates, out of 13,502 existing Tourist Housing, only 941 operate with the corresponding activity license. Although the autonomous government led by Manuela Carmena tried to alleviate these deficiencies through the Special Plan for Accommodation approved in March 2019, the Council qualifies the same as ineffective, not having solved the alleged problems. Due to the above, from the Madrid City Council has announced the implementation of the following measures:
2. Reinforce the inspection activity with the incorporation of 10 new inspectors to the Sub-Directorate General of Inspection and Discipline, which up to now has 65 inspectors, representing an increase of 15% of the corps. 3. Create an official list of the Tourist Housing that have a municipal license and their actual location, accessible from the City Council's web portal. Penalties:
Penalties are cumulative in the event of continued noncompliance with the law. The Eversheds-Sutherland Hospitality team remains at your disposal to further discuss any questions you may have. Key contacts
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