Spain targets illegal rentals in Madrid as the Ministry of Social Rights, Consumption, and the 2030 Agenda releases a major investigative report uncovering more than 15,200 unlicensed tourist apartments operating across the capital.
The Consumer Affairs Ministry has called on the Madrid City Council to take immediate action, including removing all illegal listings from online platforms and initiating sanctions against property owners violating local housing regulations.
The report, delivered to the city council this week, results from months of research conducted by the Consumer Analysis Unit. According to the ministry, the number of tourist accommodations advertised in Madrid is 16,335. However, this figure far exceeds the 1,131 official licenses issued under the city’s RESIDE Plan presented at the end of 2024. This discrepancy has led officials to estimate that at least 15,204 of these listings are operating illegally.
To support enforcement, the Ministry has handed over a digital file that includes highly detailed data—addresses, URLs, and host details—designed to help local authorities identify illegal operators. The Ministry’s goal is not only to shut down unauthorized tourist rentals but also to return these properties to the long-term rental market for residents and reduce housing pressure in central neighborhoods.
Madrid’s city government, led by Mayor José Luis Martínez-Almeida, has been urged to act decisively within its municipal powers. The data provided highlights known hotspots, such as Calle Mayor and Calle Preciados, where multiple listings have been flagged as unlicensed. This trend, officials say, is replicated throughout the city, potentially affecting thousands of residential blocks and tourist-frequented zones.
The crackdown is part of a broader national effort to regulate the rapidly growing vacation rental market. The Ministry, led by Pablo Bustinduy, has emphasized the social consequences of uncontrolled tourist accommodation, including rising housing costs and the displacement of long-term residents from city centers.
The findings come from similar investigations in other high-tourism regions, such as the Balearic Islands and Andalusia. In these areas, the Consumer Affairs Ministry has already delivered actionable reports to regional governments, leading to the removal of illegal listings and strengthened inspections.
The ministry also confirmed that it has opened disciplinary proceedings against several vacation rental platforms and large-scale property managers. These investigations address violations ranging from the failure to display required license numbers to misrepresenting commercial operations as private rentals. Some companies are now facing penalties for not complying with Spain’s consumer protection laws.
In Madrid, the Consumer Ministry is pushing the city to follow examples set by Barcelona and Ibiza. Barcelona successfully removed thousands of illegal listings in recent years, leading to more available housing for local residents. Ibiza launched a coordinated plan to identify irregular tourist properties, take down unauthorized ads, and increase inspections and fines.
The situation in Madrid, however, is especially critical given its status as Spain’s capital and one of its most visited cities. If the current illegal listings remain active, they could continue to distort the housing market and contribute to overtourism in sensitive residential zones.
For travelers, the development serves as a timely reminder to verify the legal status of short-term rentals when booking accommodations in Madrid. Tourists may unknowingly stay in unauthorized properties, potentially facing eviction or service disruptions if enforcement actions are taken during their stay.
Meanwhile, the city council is reviewing the data and considering next steps. With the support of national authorities and growing pressure to regulate the sector, Madrid may soon follow through with mass removals, stricter enforcement, and new policies to curb the spread of illegal vacation rentals.
