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Short-term rentals (STRs), commonly referred to as "alojamientos turísticos" in Madrid, are legal but heavily regulated. To legally operate, hosts must register their properties with the Madrid City Council and obtain a tourism license, particularly for rentals lasting less than 90 days. In 2024, new restrictions included a freeze on new rental licenses and increased fines for violations, indicating a significant crackdown. Properties typically thrive in urban locations like apartments and small homes, catering predominantly to tourists drawn to Madrid's cultural offerings, though there is also a demand from business travelers. The business environment is influenced by tight regulations aimed at mitigating overtourism and ensuring affordable housing for locals. The Department of Sustainable Urban Development oversees rental regulations in Madrid. For more information, visit official sources, including the Madrid City Council website at and the Community of Madrid's Housing Department at.
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