Madrid City Council has approved theRESIDE Plan, the most restrictive regulation in the history of short-term rentals in the capital. Its impact is direct:scattered short-term rentals in residential buildings in the historic center are no longer viable.

Key fact:

Before the RESIDE Plan, Madrid had around 16,100 short-term rentals, of which only 7.45% were operating fully legally.

What is the RESIDE Plan?

It replaces the previous 2019 Special Lodging Plan. Approved in August 2025, its central premise is clear:short-term rentals cannot coexist with permanent residents in the same buildingwithin Madrid's historic center.

Who does it affect?

  • Owners in the center with an existing license:may continue operating while their license remains valid, but will not be able to renew it under the same conditions.
  • Owners applying for a new license:are directly affected by the new zoning restrictions.
  • Owners outside the center:the RESIDE Plan only affects the municipality of the city of Madrid.

Zones and restrictions

Historic center:a total ban on new short-term rentals in residential buildings. They are only permitted in entire buildings devoted wholly to lodging, or in properties for tertiary use. Temporary licenses have a maximum term of 15 years.

Outside the center:an independent access from the street and a minimum floor area of25 square meters are required.

Sanctions regime

Fines range between€30,000 and €190,000. In 2025, short-term rental inspections in Madrid rose from 481 to 588 cases, with accumulated sanctions close to half a million euros.

Licenses granted before the RESIDE Plan

Licenses granted before it came into force are protected by the principle of non-retroactivity. However, when they expire, their renewal will be subject to the new zoning compatibility rules.

Silver lining:if you hold a valid, well-documented license, you have room to keep operating and plan your strategy. The key is to act before it expires.

What can you do?

  • Valid license:keep your documentation up to date and comply with traveler registration in SES.HOSPEDAJES.
  • Applying for a new license:check the exact zoning of the property before investing any more time.
  • Sanction proceeding:don't ignore it. Deadlines are short, and procedural errors are common and can be your best defense.