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Tourist flats in Malaga and Madrid: licence suspension and Plan Reside

Malaga suspended new tourist homes for up to three years and Madrid applies Plan Reside. What changes if you plan to buy for tourist letting.

1 min read

Data and events refer to: July 2026.

Two closely watched markets have tightened their rules. Before buying with tourist letting in mind, it pays to know where each one stands.

Malaga

The city council suspended new tourist homes in August 2025, for up to three years or until new planning rules are approved. In July 2026 the provincial gazette published the initial approval of a change to the General Plan, which also affects hotels and apartments on residential land. It is still in process, so check which stage it has reached.

Madrid

Plan Reside has been in force since September 2025. It limits scattered tourist flats in residential buildings in the historic centre. The city council says illegal tourist flats fell 40% in a year, a figure that comes from the administration itself. The opposition has asked for the plan to be repealed, so its political future remains open.

Andalusia

In January the regional government approved a decree allowing councils to limit the number of tourist flats per building or sector.

What to check before buying

  • Whether the home has a valid licence or registration, and whether it transfers.
  • Municipal rules for that specific street.
  • The community's statutes and agreements.
  • The return from a standard rental.

A purchase that only works with tourist letting carries regulatory risk that you should include in your numbers.

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