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Yes, the analysis of Madrid's property market is included in our pack
Airbnb remains profitable in Madrid but faces increased regulation and compliance costs in 2025.
Average nightly rates have increased 9-10% year-on-year to around €115-€118, while occupancy rates average 64% for median properties. Central one-bedroom apartments typically earn €2,500-€2,800 monthly before expenses, significantly higher than long-term rentals at €1,300-€1,800. However, new regulations requiring 60% community approval and mandatory national registration from July 2025 have reduced active listings by 10-20%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Madrid, based on reliable facts and data, not opinions or rumors.
Madrid Airbnb properties average €2,500-€2,800 monthly for central one-bedrooms, with occupancy rates around 64% annually and peak rates reaching 82-91% in high season.
New regulations from 2024-2025 require 60% community approval for new listings and mandatory national registration, reducing total active listings by 10-20% while increasing compliance costs.
| Metric | Current Performance | Year-on-Year Change |
|---|---|---|
| Average Nightly Rate | €115-€118 (median) | +9-10% |
| Annual Occupancy Rate | 64% (median properties) | Stable |
| Monthly Bookings | 19-20 days/month | Stable |
| Central 1BR Monthly Revenue | €2,500-€2,800 | +5-8% |
| Active Listings | 16,870-21,125 | -10 to -20% |
| Tourist Tax | €3/person/night | No change |
| Income Tax Rate | 19-47% (no 60% deduction) | No change |
How much are Airbnb nightly rates in Madrid right now compared to one year ago?
Madrid Airbnb nightly rates have increased significantly over the past year, with the median rate now around €115-€118 per night.
As of September 2025, typical properties command approximately $125 (€115-€118) per night, representing a 9-10% increase compared to September 2024. Top-performing listings in prime locations achieve €175+ per night, while budget options average around €65-€75.
The rate increase stems from strong tourism demand combined with reduced supply due to licensing freezes and new registration requirements. Central districts like Centro, Malasaña, and Chueca see the highest rates, often 30-50% above peripheral neighborhoods.
Premium one-bedroom apartments in tourist hotspots regularly command €140-€180 per night during peak season, compared to €125-€160 a year ago. These increases have helped maintain profitability despite rising regulatory and compliance costs.
What is the current occupancy rate for Airbnb listings in Madrid across high and low seasons?
Madrid Airbnb occupancy rates show significant seasonal variation, with median properties achieving 64% annual occupancy.
During high season (April-October), median listings achieve 66.2-69.5% occupancy, while top performers reach 82-91%. Peak summer months see the highest demand, particularly in July and August when occupancy can exceed 85% for well-positioned properties.
Low season occupancy (November-March) drops substantially to 43-51% for most listings. December and January typically show the lowest occupancy rates, requiring hosts to adjust pricing strategies or consider temporary long-term rentals.
Properties in tourist-focused neighborhoods like Centro maintain higher year-round occupancy compared to residential areas. The annual average of 64% for median properties translates to approximately 19-20 booked nights per month.
How many days per month, on average, do Madrid Airbnb hosts manage to book their property?
Madrid Airbnb hosts typically book their properties for 19-20 days per month on average, though performance varies significantly by location and property quality.
| Performance Tier | Days Booked/Month | Annual Nights |
|---|---|---|
| Top Performers (25%) | 25+ days | 300+ nights |
| Median Properties | 19-20 days | 230-240 nights |
| Lower Quartile | 13-15 days | 150-180 nights |
| Centro/Tourist Areas | 22-25 days | 260-300 nights |
| Residential Outskirts | 15-17 days | 180-200 nights |
| Peak Season Average | 24-28 days | High season months |
| Low Season Average | 13-16 days | Winter months |
What are the typical monthly earnings for a one-bedroom Airbnb in central Madrid after fees?
Central Madrid one-bedroom Airbnb apartments typically generate €2,500-€2,800 monthly in gross revenue after basic platform fees but before operating expenses.
Median listings across all property types in central Madrid earn approximately €2,200 per month, while one-bedroom apartments in prime locations like Centro, Malasaña, and Chueca command premium rates. Top-performing properties can exceed €4,000 monthly during high season.
These figures represent gross revenue after Airbnb's service fees (3-15% depending on fee structure) but before cleaning costs, utilities, management fees, and maintenance expenses. During low season, monthly revenues typically drop 30-40% from peak levels.
Properties with excellent reviews, professional photography, and strategic pricing achieve the higher end of this range. Location remains the primary factor, with tourist hotspots consistently outperforming residential neighborhoods by 30-50%.
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How do those earnings compare with the average long-term rental income for the same property in Madrid?
Airbnb earnings in central Madrid significantly exceed long-term rental income, with short-term rentals generating 30-80% higher monthly revenue.
The same one-bedroom apartment earning €2,500-€2,800 monthly on Airbnb would typically rent long-term for €1,300-€1,800 monthly. This represents a gross premium of €700-€1,500 monthly, though this gap narrows after accounting for higher operating costs and vacancy periods.
However, long-term rentals benefit from stable income, lower management requirements, and a 60% tax deduction on rental income that doesn't apply to short-term rentals. Airbnb hosts face 19-47% tax rates on gross income with limited deductible expenses.
The profitability gap is most significant during high season but can disappear during low season when Airbnb occupancy drops below 50%. This analysis is detailed further in our Madrid property pack.
Risk factors also differ substantially, with Airbnb facing regulatory uncertainty while long-term rentals offer more predictable returns and stronger tenant protections.
What are the main costs hosts face in Madrid today, including cleaning, utilities, management fees, and maintenance?
Madrid Airbnb hosts face substantial operating costs that significantly impact net profitability, with total expenses often reaching 40-50% of gross revenue.
1. **Cleaning costs**: €40-€70 per turnover, varying by property size and service provider 2. **Utilities**: €100-€180 monthly for electricity, gas, internet, and water 3. **Management fees**: 15-22% of gross revenue if outsourced to professional companies 4. **Maintenance**: €50-€100 monthly average for repairs, replacements, and upkeep 5. **Community fees**: €60-€120 monthly for HOA fees in city center buildings 6. **Airbnb commissions**: 3-15% per booking depending on chosen fee structure 7. **Insurance**: €30-€60 monthly for specialized short-term rental coverage 8. **Supplies and amenities**: €40-€80 monthly for toiletries, linens, and consumablesProfessional property management services, while expensive at 15-22% of revenue, often improve occupancy rates and guest satisfaction. Self-managed properties require significant time investment but can increase net margins by €300-€600 monthly.
How much do Madrid Airbnb hosts currently pay in local taxes, tourist levies, and income taxes on their rentals?
Madrid Airbnb hosts face a complex tax structure that significantly impacts profitability, with total tax burden often reaching 25-50% of net income.
Tourist tax amounts to €3 per person per night with a maximum of 14 nights per guest. Airbnb typically collects and remits this tax automatically, so hosts don't handle it directly, but it affects guest demand as the cost adds up quickly for longer stays.
Personal income tax represents the largest burden, with rates ranging from 19-47% for Spanish residents, 19% for EU/EEA non-residents, and 24% for non-EU/EEA residents. Unlike long-term rentals that benefit from a 60% deduction, short-term rentals only allow cost-apportioned deductions.
Additional municipal business activity tax may apply for professional hosts, and non-compliance fines can be severe for unregistered properties. As of July 2025, all properties must display a national registration number or face delisting from platforms.
The effective tax rate after deductions typically ranges from 15-35% of net income, substantially higher than long-term rental taxation.
What new regulations or restrictions has Madrid implemented on short-term rentals in 2024 and 2025?
Madrid has implemented strict new regulations that fundamentally changed the short-term rental landscape in 2024 and 2025, significantly impacting market dynamics.
From April 2024, Spain's new national law requires 60% approval from property owners' communities before establishing new short-term rentals in residential buildings. This effectively gives neighbors veto power and has made opening new Airbnb properties extremely difficult in most buildings.
The mandatory national registry requirement, effective July 2025, requires all short-term rentals to obtain and display a registration number. Properties without valid registration face delisting from online platforms, with Airbnb actively removing non-compliant listings.
Madrid has implemented a licensing freeze until February 2026, preventing new short-term rental licenses in most areas while authorities review the regulatory framework. This has created artificial scarcity but also regulatory uncertainty for existing operators.
Enforcement has intensified dramatically, with increased inspections and substantial fines for non-compliant hosts. These measures have reduced active listings by 10-20% over the past year while increasing compliance costs for remaining operators.
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How many active Airbnb listings are there in Madrid now, and has that number grown or shrunk recently?
Madrid currently has approximately 16,870-21,125 active Airbnb listings, representing a significant 10-20% decrease from 2024 levels.
The reduction stems from multiple regulatory factors including the new 60% community approval requirement, mandatory national registration, and increased enforcement activities. Many hosts have voluntarily removed listings rather than navigate complex compliance requirements.
Platform delistings have accelerated since July 2025 as Airbnb removes properties without valid registration numbers. This trend is expected to continue through early 2026 as authorities complete compliance reviews and hosts decide whether to meet new requirements.
The decrease in supply has benefited remaining compliant operators through reduced competition and higher occupancy rates. However, it has also increased regulatory scrutiny and compliance costs across the sector. This market consolidation is explored in detail in our Madrid property pack.
Tourism authorities expect the market to stabilize around 15,000-18,000 listings by mid-2026 once all regulatory changes are fully implemented.
What are the main differences in profitability between tourist hotspots like Centro or Malasaña and residential neighborhoods on the outskirts?
Tourist hotspots in Centro and Malasaña significantly outperform residential neighborhoods, generating 30-50% higher revenue despite increased costs and regulatory scrutiny.
| Location Type | Average Nightly Rate | Monthly Revenue |
|---|---|---|
| Centro/Sol | €140-€180 | €3,200-€4,100 |
| Malasaña/Chueca | €130-€170 | €3,000-€3,800 |
| La Latina/Huertas | €120-€150 | €2,800-€3,400 |
| Retiro/Salamanca | €110-€140 | €2,400-€3,000 |
| Residential Areas | €70-€95 | €1,600-€2,200 |
| Outer Districts | €60-€80 | €1,400-€1,800 |
Tourist areas benefit from higher occupancy rates (70-85% vs 55-65%), premium pricing power, and consistent demand throughout the year. However, they also face higher community fees, more intensive regulatory oversight, and greater neighbor complaints.
Residential neighborhoods offer lower entry costs, reduced regulatory scrutiny, and easier community approval but struggle with lower occupancy rates and pricing power. Many properties in outer districts achieve occupancy below 55% annually.
How have rising mortgage rates and property purchase prices in Madrid affected Airbnb profitability for owners?
Rising mortgage rates and property prices have significantly compressed Airbnb profitability for new investors, with gross yields dropping from 7% to 5-6% over the past year.
Property purchase prices in central Madrid have continued climbing, with one-bedroom apartments in tourist areas now costing €350,000-€500,000 or more. Combined with mortgage rates above 4%, new investors face substantially higher capital costs compared to 2023.
Monthly mortgage payments for a €400,000 property now exceed €1,800-€2,200, consuming 65-80% of typical Airbnb gross revenue compared to 50-60% previously. This leaves limited margin for operating expenses and unexpected costs.
Existing property owners without mortgages continue to benefit from increased rental rates, but leveraged investors face challenging returns. Many potential investors are postponing purchases or considering alternative markets with better yield profiles.
The regulatory uncertainty adds another layer of risk, with some lenders becoming more cautious about financing short-term rental properties. Cash buyers maintain better positioning but still face lower yields than historical levels. This topic is comprehensively covered in our Madrid property pack.
What occupancy and revenue forecasts do analysts and local tourism boards give for Madrid Airbnbs over the next 12 months?
Analysts and tourism boards forecast moderate growth for Madrid Airbnb performance through September 2026, with stabilizing occupancy rates and gradual revenue increases.
Expected annual occupancy rates are projected at 64-68% for median properties, with high season occupancy reaching 75-82%. The reduced supply from regulatory changes should support higher occupancy rates for compliant properties compared to oversupplied markets.
Monthly revenue forecasts for central one-bedroom apartments range from €2,400-€2,900, representing stable to modest growth. Limited new supply due to licensing restrictions should prevent oversaturation and support pricing power for existing operators.
Tourism demand remains robust with Madrid's position as a major European destination. However, profitability increasingly depends on strict regulatory compliance, efficient cost management, and prime locations rather than market growth alone.
The key risk factors include potential additional regulatory restrictions, economic downturns affecting tourism, and increased competition from hotels as they adapt to post-pandemic travel patterns. Successful operators will focus on operational excellence rather than market expansion.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Madrid's Airbnb market continues to offer profitability opportunities for property owners, but success increasingly requires navigating complex regulations and managing higher compliance costs.
The reduced supply from regulatory changes benefits existing operators through less competition, but new entrants face significant barriers and uncertain returns on leveraged investments.
Sources
- Airbtics Madrid Revenue Analysis
- AirROI Madrid Performance Report
- ListingOK Madrid Occupancy Data
- BNB Calc Madrid Regulation Guide
- Airbtics Madrid Rules Analysis
- Costa Luz Lawyers Tax Guide
- Spanish Property Insight Regulation Update
- Costa Luz Registration Requirements
- Euro Weekly News Regulation Changes
- Calido Living Madrid Market Trends