ALMEIDA PRESENTS A 95 MILLION STRATEGY TO BOOST MADRID'S RETAIL AND HOSPITALITY SECTOR
2025/11/13
The mayor pledges to offer “the best fiscal, regulatory and bureaucratic framework” for the development of both sectors, economic and social pillars of the capital
The mayor of Madrid, José Luis Martínez-Almeida , presented this Tuesday the Comprehensive Strategy for Strengthening the Commercial and Hospitality Activity of the city 2025-2027 , a plan endowed with 95.4 million euros that seeks to revitalize and modernize two of the most representative sectors of the Madrid economic fabric.
During the event held at the Casa de la Panadería in the Plaza Mayor , Almeida highlighted the importance of offering " the best fiscal, regulatory and bureaucratic framework " so that commerce and hospitality " can develop from a competitive and sustainable perspective ."
Accompanied by the delegate for Economy, Innovation and Finance, Engracia Hidalgo , and representatives from the business sector such as Miguel Garrido (CEIM) and Ángel Asensio (Chamber of Commerce), the mayor stressed that the City Council's objective is " to continue being a city with a strong vocation and future projection that originates from the streets and neighborhoods , spaces that without shops and restaurants are dead neighborhoods and streets."
A plan to strengthen the city's economic and social role
The new strategy is based on the unifying and transformative power of retail and hospitality and will serve as a roadmap for addressing the sector's challenges over the next three years. It includes 25 projects structured around seven lines of action , focusing on municipal markets, key shopping districts, fashion, gastronomy, crafts, and street vending .
The document was prepared with the participation of business associations, unions, academic institutions and the Sectoral Council of Commerce and Hospitality , and is presented as a project “ inspired by dialogue and the result of an agreement of wills ”, as highlighted by Almeida.
Four major challenges: from small businesses to the tax framework
The City Council identifies four major challenges to strengthen Madrid's retail and hospitality sectors:
- Small businesses: a comprehensive diagnosis of supply and demand will be carried out in the 131 neighborhoods, using artificial intelligence to design precise interventions that boost the sector.
- Generational change: entrepreneurship and training will be promoted with projects such as the Puerta Bonita Pastry and Bakery School , the Generational Change Classroom in Butchery and the future San Cristóbal School of Commerce .
- Fashion and crafts: the City Council will invest 3.7 million euros in 2025 to consolidate these industries as strategic tourist and economic drivers.
- Competitive tax framework: tax cuts and the simplification of procedures will be reinforced through a technical support office for small businesses .
Engine of employment and economic development
Madrid's retail sector generates €7.5 billion in annual spending and comprises over 42,000 establishments , mostly small businesses employing 158,000 people . Meanwhile, the hospitality industry boasts more than 27,000 restaurants and accommodations, with 142,000 workers , solidifying Madrid's position as a leading gastronomic and tourist destination .
Economic and fiscal support until 2027
In 2025, the City Council will allocate more than 12 million euros in aid to strengthen the business fabric:
- 2 million in direct subsidies to the self-employed , of which 500,000 euros are reserved for generational change and 1.5 million for job creation.
- 10.3 million euros for digitization, market modernization, training and entrepreneurship.
In addition, tax breaks are maintained: reduction of the IAE for new companies or expansions of staff, 95% discount on the IBI for municipal markets and century-old establishments —an overall saving of 6.6 million euros between 2025 and 2027— .
Almeida concluded that this strategy “ reinforces Madrid’s identity and its position as one of the most dynamic capitals in Europe ,” highlighting that “ commerce and hospitality are the soul of our neighborhoods and the engine of our economic future .”