GREEN LIGHT FOR THE 95 MILLION STRATEGY TO STRENGTHEN MADRID'S RETAIL AND HOSPITALITY SECTOR
2025/11/13
The Governing Board approves the Comprehensive Strategy for Strengthening Commercial and Hospitality Activity 2025-2027, which promotes 25 projects in seven lines of action
The Governing Board of the Madrid City Council approved this Thursday the Comprehensive Strategy for Strengthening Commercial and Hospitality Activity 2025-2027 , a plan endowed with 95.4 million euros intended to revitalize and modernize two of the most important economic sectors in the capital.
The initiative, presented last Tuesday by Mayor José Luis Martínez-Almeida , seeks to adapt public policies to the new realities of the sector and plan measures to strengthen its activity. As explained by Deputy Mayor and City Spokesperson Inma Sanz , the project “is based on the cohesive and transformative power of commerce and hospitality” and lays the foundations “for their future sustainability and competitiveness.”
A participatory plan with a transformative vocation
The document is the result of collaborative work between public bodies, business associations, academic institutions, trade unions, and the Sectoral Council for Commerce and Hospitality . Its objective is to create an optimal fiscal, regulatory, and bureaucratic framework that will allow both sectors to continue growing and adapt to new economic, technological, and social challenges.
The strategy is conceived as a roadmap to lead a new way of understanding Madrid's commerce and hospitality, recognizing its key role in the social cohesion and cultural identity of the city.
25 projects and seven lines of action
The strategy will promote 25 projects structured around seven main lines of action , focused on:
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Municipal markets and short marketing channels.
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The main commercial areas .
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The fashion, crafts, gastronomy, hospitality and street vending sectors.
Its objectives include promoting employment and generational renewal , digital transformation , modernizing municipal markets , strengthening small businesses , and simplifying administrative procedures . It also aims to consolidate Madrid's position as a fashion capital and a leading gastronomic and shopping destination .
Four major challenges: trade, generational change, fashion and the tax framework
The City Council identifies four major challenges in the strategy:
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Small businesses. A comprehensive diagnosis of supply and demand will be carried out in the 131 neighborhoods of Madrid, supported by the use of artificial intelligence to analyze the data and design precise interventions by district.
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Generational change. Training and entrepreneurship will be promoted with initiatives such as the Puerta Bonita Pastry and Bakery School , the Generational Change Classroom in Butchery or the future San Cristóbal School of Commerce , in addition to mentoring programs in commercial innovation.
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Fashion and crafts. In 2025 , 3.7 million euros will be invested to consolidate these industries as strategic tourist and economic drivers.
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Competitive tax framework. A reduction in taxes is planned, along with the creation of a technical office to simplify procedures and alleviate the bureaucratic burden on small businesses.
Commerce and hospitality: economic engines of the capital
Madrid's retail sector generates nearly €7.5 billion in spending annually and comprises over 42,000 establishments , mostly small businesses employing 158,000 people . Madrid also boasts 45 municipal markets spread across 17 districts, the most extensive network in Europe.
For its part, the hospitality sector comprises more than 27,000 restaurants and accommodation establishments that employ more than 142,000 people , consolidating the capital as a leading gastronomic and tourist destination .
More than 12 million euros in aid and bonuses
In 2025, the City Council granted €2 million in subsidies to self-employed workers , with €500,000 earmarked for generational renewal and €1.5 million for job creation. In addition, €10.3 million was allocated to support, digitization, modernization, and training for the sector, as well as to improvements in municipal markets.
The council also maintains tax breaks such as a 95% reduction in property tax for municipal markets and century-old establishments, which will result in overall savings of 6.6 million euros between 2025 and 2027 .
With this strategy, the City Council seeks to consolidate Madrid as a leading city in economic dynamism, commercial innovation and tourist attraction , reinforcing the importance of commerce and hospitality as essential drivers of urban and social development .