Sanctions for Vacation Rental in Madrid: Amounts and Regime 2026

VUT sanctions Madrid is one of the concepts most feared by owners and property managers following the approval of Decree 27/2026. The new regional regulation, in force since 26 April 2026 with a three-year transitional period for pre-existing VUTs, strengthens the requirements for holiday rental properties and leaves very little room for non-compliance. However, the specific amounts and graduation criteria continue to be set out in Law 1/1999 on Tourism Regulation, which defines the sanctions regime.

In this article we explain what specific fines are imposed, when they expire and which body resolves them. You will also see how this affects the property manager, the VUT owner and the homeowners’ association itself. All information is verified against Law 1/1999 published in the BOE, Decree 27/2026 published in the BOCM on 6 April 2026, and Organic Law 1/2025 reforming the LPH.

VUT sanctions Madrid: official amounts 2026

The sanctions regime for VUTs in the Madrid Community is graded into three levels. Each level has a different economic range and different limitation periods. Therefore, it is important to know which level each breach fits into before taking action.

Three levels of infringement

• Minor infringements: fine of up to €3,000. For example, minor deficiencies in customer information or small formal errors.
• Serious infringements: fine between €3,001 and €30,000. For example, operating the activity without the mandatory responsible declaration or failing to comply with the new requirements of Decree 27/2026.
• Very serious infringements: fine between €30,001 and €300,000. For example, systematic repeat offences, document forgery or operation in publicly protected housing.

Furthermore, in minor infringements without repeat offences, the administration may replace the fine with a formal warning. This possibility does not exempt from subsequent compliance, but allows the case to be closed without financial cost.

Limitation periods

Infringements and sanctions expire within the following time periods:

• Very serious infringements: three years.
• Serious infringements: two years.
• Minor infringements: one year.

Consequently, a VUT that operated in 2024 without a licence and was never sanctioned may have already had part of its liability expire. However, this expiry does not affect the administrative closure of the activity or civil liability to the homeowners’ association.

What changed with Decree 27/2026

Decree 27/2026, published in the BOCM on 6 April 2026, amends Decree 79/2014. It does not alter the amounts of sanctions, but significantly expands the circumstances that can give rise to infringement. The most important changes from the property manager’s perspective are as follows.

Homeowners’ association approval is now a prerequisite to the start of the activity

This is the change with the greatest practical impact. Under the previous framework, the homeowners’ association could only act to limit or prohibit an activity already underway. With Decree 27/2026, an owner who wishes to start a VUT must prove, at the time of submitting the responsible declaration, that they have the express approval of the homeowners’ association. Without that prior agreement, the activity cannot legally begin and any VUT advertised on platforms is in a state of serious infringement from day one.

The community agreement is adopted in accordance with art. 17.12 LPH, with a majority of 3/5 of owners and participation quotas, convened with a specific agenda and notification to absent parties within thirty business days. This mechanism was reinforced by Organic Law 1/2025, of 2 January, in force since 3 April 2025.

CIVUT certificate: mandatory since 2014, more demanding since 2026

The CIVUT (Suitability Certificate for Holiday Rental Properties) is not a novelty of Decree 27/2026: it has existed since Decree 79/2014. What is changing now are two key aspects.

Who may issue it. The Madrid TSJ annulled in 2021 the restriction limiting CIVUT signature to architects and technical architects, considering it an unjustified limitation on competition. Decree 27/2026 reflects this jurisprudence: it can now be issued by any competent technical professional, which increases the number of available professionals.

What must be evidenced. The technical content is substantially expanded. The CIVUT must now verify on site, among other aspects: minimum surface area of each room, total blackout systems in bedrooms and living-dining room, adequate ventilation (natural or mechanical) in kitchen and bathrooms, manual fire extinguisher inside no more than fifteen metres from the exit door

a, basic emergency signalling and minimum equipment in bedrooms, bathrooms and kitchens.

Without a valid CIVUT, the responsible declaration has no validity and the activity is considered unauthorised, which falls within the range of serious infringement.

Minimum surface area and maximum occupancy

The decree sets minimum surface limits with specific figures that the property manager must be aware of:

• No dwelling smaller than 25 m² may be used for tourist purposes. There are no exceptions or grace period for this reason.
• Dwellings between 25 and 40 m² may accommodate up to four people.
• From 40 m² onwards, two additional places are permitted for every 12 m² extra, provided there are independent habitable rooms.

The previous formula (two additional people for every 10 m²) is repealed. A VUT exceeding the declared maximum occupancy constitutes a serious infringement. If the over-occupancy is systematic, it may escalate to a very serious infringement.

Who submits the responsible declaration

Another relevant change not covered in the previous article: the responsible declaration is no longer necessarily submitted by the property owner, but by the holder of the tourist accommodation activity. If a professional management company operates the flat, it is the company that must submit it and assumes the position of registered operator for sanctioning purposes.

Prohibition in publicly protected housing

Decree 27/2026 expressly prohibits VUT activity in dwellings subject to any form of public protection regime. Any publicly protected housing advertised as tourist accommodation automatically constitutes a very serious infringement, with a minimum penalty of €30,001.

Extended municipal powers

The regional regulation expressly empowers municipalities to set, through urban planning and by-laws, the maximum number of VUTs per building, area, zone, sector or period. For the property manager running homeowners’ associations in Madrid capital, this is relevant: Madrid City Council could establish additional restrictions in districts with high tourist concentration, regardless of what the regional regulations provide for.

Transitional period for pre-existing VUTs

Decree 27/2026 establishes a three-year transitional period for VUTs that were already registered before its entry into force. However, the new technical requirements—especially those relating to minimum surface area, darkening systems and equipment—apply to all active VUTs within the deadlines set by the decree itself. VUTs smaller than 25 m² are excluded without a grace period as regards the surface limit.

Who imposes the penalty and how it is processed

The sanctioning procedure follows the general rules of administrative law. However, it is advisable to know the competent bodies to anticipate timescales and possible appeals.

Competent bodies

• Director General of Tourism: resolves minor and serious infringements.
• Councillor responsible for tourism: resolves very serious infringements, as well as those with additional penalties.

The procedure may be initiated ex officio by the regional inspection authority or following a complaint by a third party. The property manager, a homeowners’ association or a specific neighbour may file a complaint through the general procedure under the Administrative Procedure Act 39/2015.

Accessory penalties

Beyond the economic fine, the administration may impose accessory penalties. The most relevant are:

• Immediate cessation of the activity: applies to serious and very serious infringements.
• Cancellation of registration in the Register of Tourism Companies, which prevents further operation.
• Temporary disqualification of the operator from carrying out tourism activities.
• Publication of the penalty in the BOCM in very serious cases with recidivism.

Consequently, the risk is not limited to paying the fine. A penalised VUT can be removed from the market for several years, which is probably the most important deterrent effect.

Practical examples: three typical cases

What the property manager must do

The property manager is not the sanctioning authority, but plays a central role in detection and evidence. Therefore, it is advisable to document any indication that comes to their knowledge.

Detect and document

• Collect complaints from neighbours about noise, waste or inconveniences linked to a VUT.
• Identify the affected flat and verify whether it has a responsible declaration, prior community agreement and valid CIVUT.
• Capture advertisements from tourism platforms that identify the address and declared occupancy.
• Request documentation from the owner proving compliance with Decree 27/2026.

Refer to the homeowners’ association

Before reporting to the authorities, the assembly must decide on the course of action. The homeowners’ association may choose a civil cessation action in accordance with art. 7.2 LPH if the VUT operates without authorisation, or file an administrative complaint if regional requirements are missing. In many cases, both routes are combined effectively.

Maintain the chain of evidence

The sanctioning proceedings require solid evidence. A good chain of evidence includes signed minutes, timestamped screenshots, reliable communications to the owner and incident records. Keeping track using a specialist tool saves considerable time when documentation must be provided to the authorities.

Resources available to the sanctioned party

The sanctioned owner has three levels of defence. It is advisable that the property manager understands this framework to advise correctly, without entering into direct legal defence.

1. Submissions to the statement of charges within fifteen days.
2. Appeal to the higher authority within one month from notification of the resolution.
3. Administrative law appeal before the TSJ Madrid within two months after exhausting the administrative route.

The case law of the TSJ Madrid has annulled sanctions for incorrect application of the sanctioning regime. This demonstrates that technical defence is viable when the authorities commit formal or material errors.

Frequently asked questions

Can a VUT be sanctioned and at the same time sued by the homeowners’ association?

ity?

Yes. Both routes are entirely compatible. Administrative penalty addresses compliance with tourism regulations. The homeowners’ association’s civil action, in contrast, defends collective rights against breach of the horizontal property regime. Therefore, the offender may pay a fine and, additionally, be sued to cease the activity.

Can the homeowners’ association claim part of the fine?

No. The fine goes into the regional coffers. However, the homeowners’ association can claim in civil proceedings for damages suffered, as well as an increase of up to 20% in common charges that article 17.12 LPH permits imposing on the affected flat, always by agreement adopted with the same 3/5 majority.

What happens if the VUT is owned by a company?

The penalty is directed against the legal entity holder. However, company administrators may be jointly liable if gross negligence or intent is proven. This is especially relevant for groups managing several VUT under the same company.

Are sanctions published in the BOCM?

Only for very serious infringements with recidivism. Publication is an ancillary sanction that has a strong reputational effect.

Is a VUT with prior licensing protected against Decree 27/2026?

Partially. Second Additional Provision of the LPH protects activity initiated before LO 1/2025. However, the new technical requirements of the regional decree apply to all active VUT within the three-year transitional periods set by the decree itself. VUT below 25 m² have no grace period regarding the surface limit: they are excluded from the market with immediate effect.

Who pays the fine if the VUT is managed by a professional company?

The registered holder of the tourism activity is liable. With Decree 27/2026, if it is a management company that submits the responsible declaration, it is the one that appears as the holder and assumes sanctioning responsibility. If the holder is the owner and only subcontracts ancillary services (cleaning, check-in), the owner is liable.

Can Madrid’s City Council tighten regulations even further?

Yes. Decree 27/2026 expressly enables municipalities to set, through urban planning and bylaws, the maximum number of VUT per building, area or period. Madrid’s City Council can therefore establish additional restrictions in certain districts, independently of the regional framework.

Conclusion: administrative rigour and homeowners’ association support

VUT sanctions in Madrid in 2026 are significant. Amounts range from €3,000 to €300,000 and are supplemented with ancillary sanctions that can expel the holder from the market. Decree 27/2026 also adds a new structural requirement: prior and express authorisation from the homeowners’ association is a sine qua non condition to begin the activity. Therefore, owners wishing to start must comply with the decree in detail before the first listing.

For its part, the property manager plays a key role in detection, documentation and coordination with the board. Understanding the sanctions framework well—amounts, authorities, deadlines and parallel routes—is now part of the routine work of any practice managing associations in Madrid.

If your practice manages several associations in Madrid, a tool like FixrOS centralises incident recording, allows generating authenticated communications and maintains the chain of evidence ready for the administration. To complement this article, we also recommend the Decree 27/2026 guide for property managers and the article on how to ban VUT in an association with the 2025 LPH.

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