The new Madrid Terrace Ordinance will enter into force in January 2026, following its municipal approval at the end of 2025.
This updated regulation, which replaces the ordinance in force since 2013, aims to strike a better balance between the use of hospitality terraces in Madrid and residents’ right to rest, by imposing stricter rules on the occupation of public space.
To achieve this goal, the ordinance introduces tougher enforcement measures, including enhanced sanctions for noise and other infringements, while at the same time simplifying certain administrative procedures.
Below, we explain clearly what changes with the 2025 Madrid terrace regulations, and how they affect hospitality operators, property owners, and neighbourhood communities.
I. Why a New Terrace Ordinance in Madrid?
The need for a new regulatory framework arises from several factors. The previous 2013 ordinance became outdated following the changes introduced during and after the COVID-19 pandemic.
Between 2020 and 2021, so-called “COVID terraces” were authorised on parking spaces to support the hospitality sector. While economically helpful, they also generated significant neighbourhood complaints related to noise and excessive occupation of public space.
An attempt to update the regulations through Ordinance 1/2022 was ultimately annulled by the courts due to procedural defects, forcing Madrid to temporarily revert to the 2013 rules, which were more permissive in certain respects.
Against this background, the City Council drafted and approved the new Ordinance on Hospitality and Catering Terraces and Kiosks (approved by the City Council Plenary in November 2025):
The stated objective is “not to prohibit, but to regulate” outdoor hospitality activity, reconciling open-air leisure with neighbourhood rest through clear rules and an effective sanctioning regime. Deputy Mayor Inma Sanz described the ordinance as “balanced, sensible and effective”, designed so that “everyone can enjoy terraces while also guaranteeing essential rest”.
II. Main New Features of the 2025 Madrid Terrace Regulations
The key changes introduced by the new ordinance can be summarised as follows:
1. Tougher Sanctions and New Infringements
The sanctioning regime is significantly reinforced. Noise generated by moving furniture or installing unauthorised elements is now expressly punishable.
New serious infringements include failing to remove tables and chairs at the end of the permitted hours, while certain behaviours previously classified as serious are now considered very serious, such as obstructing access for ambulances or emergency vehicles.
Repeated non-compliance may even result in the revocation of the terrace licence, targeting establishments that systematically disregard the rules.
2. No Further Changes to Maximum Opening Hours
The ordinance maintains the current terrace opening hours already applied in recent years.
During the summer season (March to October), terraces may remain open until 1:30 a.m. on Fridays, Saturdays and public-holiday eves, and until 1:00 a.m. on other days. During the winter season, closing time is midnight, except in areas subject to stricter special regulations.
In short, opening hours are neither extended nor reduced, offering stability for hospitality businesses, although some residents had advocated earlier weekday closures.
3. Mandatory Daily Removal of Furniture and Space Control
Hospitality operators must remove all terrace furniture and elements every day at closing time. No tables, chairs or barrels may remain on public roads overnight.
Installing any element not expressly authorised in the terrace licence (platforms, improvised enclosures, misplaced heaters, etc.) will be subject to sanctions.
Fully enclosing terraces located in pedestrian circulation areas is expressly prohibited and classified as a very serious infringement.
4. Protection of Accessibility and the Urban Environment
The ordinance places strong emphasis on accessibility and urban integration. Minimum distances are established to protect bus stops, metro entrances, building access points, pedestrian crossings and trees, particularly when heaters are installed nearby.
The aim is to ensure that terraces do not hinder pedestrian mobility (including people with reduced mobility, pushchairs or wheelchairs) and do not create barrier effects on pavements. Each licence will be assessed case by case, taking into account the specific characteristics of the street or square.
5. Saturated Areas and Limits in Sensitive Zones
The concept of “saturated areas”, introduced in 2022, is reinforced. The City Council will maintain a map of high-density terrace zones (such as Centro, Chamberí or Retiro), where the number or size of terraces may be limited to prevent overcrowding.
In particularly sensitive areas, stricter opening hours may also be imposed. The ordinance further establishes a Municipal Terrace Commission to oversee and coordinate enforcement city-wide.
6. End of Terraces on Parking Spaces
Temporary terrace extensions onto parking spaces authorised during the pandemic are definitively eliminated. Terraces may only be installed on pavements, pedestrian areas or other spaces expressly enabled by municipal regulations, restoring parking spaces to residents and putting an end to the so-called COVID terraces.
7. Reduced Bureaucracy for Terrace Licences
In response to industry demands, the ordinance simplifies certain administrative procedures. Terrace licences may be automatically renewed each year provided that authorised conditions remain unchanged, avoiding repetitive annual filings.
The City Council also commits to not requesting documents it already holds and to improving inter-departmental coordination, shortening response times wherever possible.
III. Impact on Hospitality Businesses: Adapting Terraces and Benefiting from Simplified Licensing
For Madrid’s hospitality operators, the new ordinance imposes stricter day-to-day obligations but also brings administrative improvements.
Key obligations include:
- Strict compliance with noise and coexistence rules, including noise caused by moving furniture.
- Daily removal of terrace elements at closing time.
- Keeping access routes and emergency areas clear, with severe penalties for obstruction.
- Additional limitations in saturated areas, including reduced surface area or opening hours.
On the positive side, hospitality businesses benefit from:
- Simplified licence renewals, reducing administrative costs.
- Faster municipal processing times and fewer redundant requirements.
- Greater legal certainty, consolidating years of regulatory instability into a single, clear framework.
Final thoughts
The 2025 Madrid Terrace Ordinance represents a major regulatory shift. Its success will depend on how consistently and fairly it is applied across Madrid’s 21 districts from January 2026 onwards.
If you are a hospitality operator or property owner and need advice on adapting your terrace to the new regulations, obtaining or renewing licences, dealing with sanctions, or resolving neighbour disputes related to noise, Quikprokuo can assist you with expert legal advice in urban planning and administrative law.
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At Quikprokuo Abogados, we specialise in real estate, urban planning and administrative law, helping both hospitality businesses and residents navigate regulatory changes with legal certainty and peace of mind.
