Madrid holiday let rules: what has changed since 2019

Following the changes in 2018, the original article anticipated amendments for 2019. It is retained as historical background, not as an announcement of future measures.

At Alehost, we keep track of legislative changes affecting holiday property owners. That is why this article discussed Madrid’s new holiday housing rules and how they would affect owners in 2019.

Changes to holiday housing regulations

Why did holiday accommodation legislation change?

Changes to holiday housing rules in Madrid had several causes. One was the lack of regulation in earlier years, which led to the proliferation of unlawful holiday properties.

The Community of Madrid therefore decided to curb unlawful accommodation through measures including rigorous inspections and more comprehensive, demanding registration.

In 2018, changes took place at all three administrative levels. Spain’s national government, through the Ministry of Finance, the Community of Madrid and the municipal council adapted their legislation to regulate holiday housing.

The shift was so substantial that in 2019 the regulations were very different from those in place just 5 years earlier.

According to public representatives, regulation was needed to guarantee accommodation habitability standards and require owners to meet their tax reporting obligations.

Related: How to declare your holiday let income to the Spanish Tax Agency.

The abolition of the habitability certificate in the final quarter of 2018 caused some controversy in the sector. That requirement set minimum standards for space, rooms and other aspects to ensure holiday property quality.

At that time, this procedure had been removed and a new one designed for the changing circumstances, known as the Certificate of Suitability for Holiday Housing (CIVUT).

What was needed to comply with the holiday housing rules in 2019?

1. Registering the property through a declaration of responsibility

The document known as a Declaración Responsable, or declaration of responsibility, is a statement in which the owner acknowledges that the accommodation meets all requirements of the Community of Madrid and the relevant municipality, where the latter has specific rules.

In this respect, the declaration of responsibility is intended to ensure that the owner knows their rights and obligations under Article 12 of Law 1/1999 of 12 March.

The declaration of responsibility for holiday housing also serves to confirm that the property meets the requirements of Decree 79/2014 of 10 June and its subsequent update of 18 July 2018.

Minimum requirements for the declaration of responsibility

The article brought together several technical requirements from the rules of that period. They must not be used to verify current compliance without consulting subsequent amendments.

1. Properties had to include at least a living/dining room, kitchen, bedroom and bathroom. They could also be considered studios if the living/dining room and kitchen were integrated with the bedroom. In that case, the maximum capacity was two people at the same time.
2. In properties of up to 25 m², only 2 people could stay simultaneously. Between that size and 40 m², capacity increased to 4. Beyond that, each additional 15 m² allowed 1 more person.
3. Holiday property operators had to hold public liability insurance. This would cover risks to users and financial harm caused by the tourist activity.
4. Tourist accommodation had to be furnished and ready for immediate use.
5. These holiday homes had to provide internet access via Wi-Fi.
6. A telephone number for continuous support also had to be specified.
7. As providers of a tourism service, property owners or managers could not discriminate against potential customers on grounds such as race, gender or religion.
8. Properties could not be used as permanent residences, let by the room or put to another use involving subdivision.

2. Registering the accommodation for guest reporting

Guest registration is a task everyone working in holiday letting must manage.

This accommodation register was mandatory under Order INT/1922/2003 of 3 July.

Related: How to manage guest registration at your holiday accommodation.

Each owner therefore had to maintain an annual guest register and notify the national law enforcement authorities whenever a new guest arrived.

3. Declaring income under the applicable tax regime

Taxes must be paid: it is that simple. Doing so avoids becoming preoccupied with what the public prosecutor does or does not require from companies such as Airbnb or Booking.com.

Tax treatment is not determined solely by being a company or an individual. Income tax, VAT and reporting obligations must be distinguished. For VAT, providing hotel-type services is a relevant criterion; consult the Spanish Tax Agency’s explanation and your specific circumstances.

4. Obtaining and attaching the CIVUT

The Certificate of Suitability for Holiday Housing (CIVUT) was a new requirement introduced by the Community of Madrid for holiday properties. This report, prepared and signed by an architect, certifies that the property meets minimum standards.

Requirements for the CIVUT

The CIVUT required measures intended to ensure the quality and safety of holiday properties:

• Access to utilities, including hot and cold water and electricity, together with working heating. Utility contracts would be required to demonstrate this.

• Direct ventilation through windows, balconies or similar openings to the outside or an uncovered courtyard.

• A handheld fire extinguisher inside the property, no more than 15 metres from the entrance door.

• Basic emergency signage indicating the exit door.

• Finally, a property evacuation plan and a building evacuation plan displayed in a visible place.

How to stay up to date with holiday housing regulations

To keep your holiday property within the legal framework, it is advisable to work with professionals experienced in the sector.

At Alehost, we have long trusted our partner Ammplio, an architecture practice specialising in holiday properties.

Their service can handle the permits needed for you to operate your holiday property lawfully, at a fixed price and as promptly as possible.

If you want to delegate operations, compare the current scope and terms of full-service management. The fee basis and services should be clear in the proposal.

Review your property’s feasibility.