Town Hall of Madrid Approves Legislation to Close 10,000+ VUTs

27 March 2019 – El País

On Wednesday, the Town Hall of Madrid approved a special plan to regulate the licences required to operate tourist apartments (“viviendas de uso turístico” or VUTs).

To obtain a licence, a VUT must now have a separate access from the other homes in the building, which means, in practice, that 95% of the establishments of this kind in Madrid will have to close. More than 10,000 VUTs will be affected, according to municipal calculations. The legislation applies to those properties defined as VUT by the Community of Madrid, which are effectively those that are leased for 90 days or more per year.

The new legislation, which was supported by Ahora Madrid and the PSOE, will enter into force within the next few days. Non-compliance will trigger a process to cease the activity in that property, like in the case of a bar operating without a licence, rather than the imposition of a fine.

It was in January 2018 that the Town Hall of Madrid established that VUTs – homes that are leased for three months or more – represent an economic activity and, therefore, require a licence. At the same time, a moratorium was declared on the granting of licences whilst the new legislation was drafted, which has now been approved.

The impact on the more than 40,000 reservations that have been made in accommodation of this kind for the Gay Pride celebrations in July 2019 is far from clear.

Original story: El País (by Gloria Rodríguez-Pina)

Translation/Summary: Carmel Drake

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