Madrid strengthens tourism law with mandatory insurance and more sanctions

Law 8/2026, of November 4, amends Law 1/1999, of March 12, on the Regulation of Tourism in the Community of Madrid and reorganizes the regime of responsible declarations, mandatory insurance, and sanctions for the regional tourism and hospitality sector. The regulation, approved by the Assembly of Madrid and signed by President Isabel Díaz Ayuso, is published in B.O.C.M. no. 270 on November 10, 2026 (reference BOCM-20261110-1, pages 13 to 23). Its entry into force is set for three months after publication, on February 10, 2027.

The text consists of a single article with twenty-seven sections, a single additional provision, a single repealing provision, and a single final provision. The reform adapts regional regulations to Directive (EU) 2015/2302 on package travel and Regulation (EU) 2024/1028 on short-term rental data, which is developed in Royal Decree 1312/2024, of December 23, creating the Single Rental Registry. According to the preamble, the amendment was necessary to adapt the sanctioning regime, elevate new types of accommodation to legal status, and clarify the rights and obligations of users and companies.

Responsible declaration and ex officio registration in the registry

The new Article 21 maintains the responsible declaration as a sufficient legal title to start the activity, but strengthens subsequent control: the competent general directorate may verify the content of the declaration and the notice of cessation at any time. Inaccuracy, falsehood, or essential omission of data, or the failure to submit the declaration, will result in the impossibility of continuing the activity, the eventual restoration of the previous legal situation, and the prohibition of requesting a new procedure for the same purpose for one year.

Article 23 establishes that the Registry of Tourism Companies and Establishments, which is public in nature, will be managed by the general directorate of tourism and that registration will be carried out ex officio once the declaration or communication is submitted, in line with the digital single window for rentals. Furthermore, Article 50 expands the functions of the Tourism Inspection to monitor advertising and marketing on websites, digital platforms, and social networks, and to cross-reference data from public registries to detect undeclared activities.

Civil liability insurance and new modalities

The new Article 12 bis requires providers to have professional civil liability insurance or an equivalent guarantee, and requires organizing travel agencies, retailers, and linked travel companies to establish a guarantee against insolvency and, where applicable, repatriation. The amount and characteristics will be determined by regulation based on the risk of each activity. Failure to maintain these insurances becomes a serious infringement.

The law elevates the accommodation modalities of Article 25 to legal rank:

• Hotel establishments, tourist apartments, and tourism camps.
• Rural tourism establishments and inns (hostels), with a single category.
• Tourist use dwellings, defined in the new Article 29 ter.
• Reception and overnight areas for motorhomes, campers, and similar vehicles (Article 29 quater).

It also incorporates price freedom (Article 13 bis), allows owners to deny admission or request the assistance of authority agents in cases of breaches of coexistence (Article 15 bis), and empowers the Executive to expand the scope of intermediation companies by regulation.

Fines of up to 300,000 euros and six-month deadlines

Article 61 sets the grading of the fines:

• Minor infringements: up to 3,000 euros.
• Serious infringements: from 3,001 to 30,000 euros.
• Very serious infringements: from 30,001 to 300,000 euros.

Offering services without a responsible declaration or failing to comply with the resolution of impossibility of exercise are classified as very serious. Sanctioning competence is divided between the general directorate of tourism (minor and serious), the head of the department (very serious up to 90,000 euros), and the Governing Council (more than 90,000 euros or definitive closure). The new Article 22 sets a maximum period of six months to resolve sanctioning procedures, tourist accommodation exemptions, and declarations of impossibility, and Article 69 establishes the expiration of the sanctioning file after six months.

The reform also includes the modernization of the Tourist Office Network with artificial intelligence tools as a complement to in-person assistance and obliges the Governing Council to submit an evaluation report to the Assembly of Madrid, within three years, on the evolution of tourist use dwellings, the detected illegal offer, and inspection activities.

The regulation arrives while the debate over tourist apartments and strained housing occupies the Madrid agenda: the sector must review contracts, policies, and marketing channels before February 2027, and city councils and digital platforms are subject to broader inspection control.

Source: Official Gazette of the Community of Madrid (B.O.C.M.), no. 270, November 10, 2026, section I.A) General Provisions, pp. 13-23 (official reference: BOCM-20261110-1).