Short- Term Rentals Regulations in Madrid, ES 2018-05-19T20:28:57+00:00

Short-Term Rental Regulations in Madrid, ES

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Madrid is the capital of Spain and the largest municipality in both the Community of Madrid and Spain as a whole. The city has almost 3.2 million inhabitants with a metropolitan area population of approximately 6.5 million. It is the third-largest city in the European Union (EU) after London and Berlin, and its monocentric metropolitan area is the third-largest in the EU after those of London and Paris. The municipality itself covers an area of 604.3 km2 (233.3 sq mi).

Summary of Regulations

Regulation

As an Airbnb host, it is important that you know and understand the current regulations that may affect you. You can access Decree 79/2014, of July 10, which regulates tourist apartments and housing for tourist use in the Community of Madrid.

Homes for Tourist Use

The Madrid regulation establishes that those apartments, apartments or houses that, furnished and equipped in conditions of immediate use, are commercialized and promoted in tourist offer channels, to be assigned in full, are considered to be “tourist housing”. its owner to third parties, for the purpose of tourist accommodation and in exchange for a price.

This regulation contemplates that the provision of the accommodation service in tourist housing will be exercised under the principle of exploitation unit, by price, professionally and regularly, without permanent residence.

The regulations consider that there is regularity when the tourist activity is exercised during a minimum period of three continuous months during the calendar year.

Registry

The applicable regulations require that all dwellings for tourist use request their registration in the Registry of Tourist Companies through the formalization of a responsible declaration before the General Directorate responsible for tourism in which the interested party declares compliance with current regulations. You can find more details about the procedures to perform here.

Also keep in mind that the Madrid law establishes that the publicity that is carried out of the houses of tourist use must include, obligatorily, the code of inscription in the Register of Tourist Companies of the competent General Direction (ex .: VT00000).

To comply with this requirement, a field has been enabled to include this registration code. You can find it in the section dedicated to the description of your space.

Taxes.

The income obtained from the rental of your accommodation may be subject to taxation and, in addition, you may have to collect and pay other taxes to the Tax Administration.

  • Income Tax on Individuals. Here , the Tax Administration provides information that may be useful if you temporarily rented your own residence.
  • Value Added Tax. In certain circumstances, VAT may apply to your rental activity. The Tax Agency explains here who has to charge VAT, when VAT is applied and when VAT is not due.
Link to the Detailed Decree 79/2014, of July 10
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Article Sources:

SHORT TERM RENTALS REGULATION & LICENSING

https://www.airbnb.com/help/article/1730/madrid

MADRID SUMMARY

https://en.wikipedia.org/wiki/Madrid

Posted By Noah Goldfeder

Marketing Team
Posted: Friday April 20th 2018

Posted By Noah Goldfeder

Marketing Team
Posted: Friday April 20th 2018

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