Madrid City Council received data on over 3,500 unlawful tourism apartments from Consumo, for their subsequent closure.
In a bid to address the growing issue of illegal tourist apartments in Madrid, the Spanish government has launched a robust regulatory crackdown, led by the Ministry of Social Rights, Consumer Affairs, and Agenda 2030. This initiative, aimed at ensuring compliance with tourist accommodation laws, has seen the identification of nearly 66,000 irregular Airbnb listings across Spain, including over 15,000 in Madrid alone.
The Ministry's efforts have been met with success, as Madrid courts have upheld the government's orders to remove these illegal listings. Notably, Airbnb's appeal against the Ministry's demand to delist close to 5,800 illegal tourist advertisements in Madrid was dismissed. This forms part of a broader enforcement initiative spanning six autonomous communities, with Madrid being a key area of focus.
The Ministry's stance, as expressed by Minister Pablo Bustinduy, is clear: no platform or company is above the law, especially when housing rights for millions of families are at stake. The plan of action involves the immediate removal of identified illegal listings from Airbnb and similar platforms, continuous identification and monitoring of unlicensed tourist accommodations, and legal backing from courts to enforce these removals and ensure compliance from online rental platforms.
The Spanish government's move aligns with broader efforts to prioritize housing availability over tourist profit-driven rentals, addressing both the housing crisis in Madrid and growing public concerns about overtourism and its negative social impacts.
To further strengthen this initiative, the Madrid City Council has allied with property administrators to help identify all the tourist apartments that do not have the appropriate license. Owners of apartments without the required documentation are warned that immediate cessation will be ordered, and these activities may be subject to fines ranging from 30,000 to 100,000 euros.
The Madrid City Council has also presented its own plan against the proliferation of irregular tourist housing, focusing on preventing illegal tourist apartments from coexisting with residential housing. The College of Administrators, who manage 90% of the community of owners in Madrid, are key partners in reaching a large number of residents.
The unique registry of tourist apartments, which requires all tourist or seasonal rentals to be registered to advertise through websites, will come into effect on July 1, 2024. This community regulation regarding short-term rentals, driven by the Ministry of Housing and Urban Agenda, marks Spain as the first country in the European Union to implement such regulations.
In the past year, the legality was restored in 251 illegal tourist apartments, representing a significant increase from the previous year when this figure was 138. The Ministry seeks to collaborate with the Madrid City Council and relevant administrations to enforce the law, and has sent the postal addresses of 3,565 illegal tourist apartments in the capital to the Madrid City Council.
Booking has also taken action, removing more than 4,000 illegal tourist apartment ads after a request from the Consumption Department. The Madrid High Court recently endorsed the blocking of more than 65,000 announcements on Airbnb.
The Madrid City Council aims to strengthen the protection and safeguarding of public interests affected by tourist apartments, such as economic activities and residential use. The ADA has prepared three letter templates for different recipients to inform them about the regulations and requirements for tourist housing. Model 1 is a general letter for all owners, detailing regulations and requirements for the correct implementation of tourist housing. Model 2 is for owners of apartments with a Responsible Declaration but no municipal license. Model 3 is for owners of apartments where a tourist housing activity is being developed without the required documentation.
This comprehensive approach to regulating tourist accommodations strictly is part of a broader strategy to protect housing rights and respond to public concerns about overtourism and its negative social impacts. The Ministry will continue to follow up on further cases beyond the initial batch, expanding enforcement as needed.
In the sphere of personal-finance, the removal of close to 5,800 illegal tourist listings from Airbnb in Madrid signifies a substantial average decrease in potential income for those involved in the industry, necessitating compliance with housing laws. The Ministry's plan of action, involving continuous monitoring and legal enforcement, could establish new average industry standards for tourist accommodation, aligning with broader efforts prioritizing housing availability over profit-driven rentals.
