Last year, the Canary Islands announced brand-new initiatives for film and TV production, meaning filmmakers can now take advantage of a 54% reduction in fees when filming, as the country is now offering some of the biggest incentives within the entertainment industry. Comparable rates also exist for video game developers, with a 45% tax rebate for investments made in game development.
Video game developers who set up shop in the islands will also find that there is only a 4% income tax on corporate income, which is substantially lower than in the rest of Spain.
The gaming sector in the Canary Islands has immense growth potential, as according to Statistica, global revenue is set to reach $522 billion in 2027. The country also has a stable gambling sector, with people able to claim online bonuses from a number of sites, while accessing a huge range of games. In 2020, there were 473 gambling providers as well as many game development studios.
No Brakes Games is just one of them, with their games soaring in popularity when their hit release Human: Fall Flat managed to sell 40 million copies. The founder of the company, Tomas Sakalauskas, set up his company in 2019. He said that he wanted to create fun experiences for gamers, and with the Canary Islands offering so many tax incentives, it just made sense.
The game development niche requires a substantial amount of investment in order to operate at peak levels. Ambitious projects may not have their costs covered by publishing deals, and that’s why incentives play such a major part in helping smaller studios succeed. According to the latest stats, 5% of game development companies who have offices in Spain, are responsible for generating 50% of the revenue within the sector.
With the tax rebates being so attractive, it seems that the Canary Islands are quickly becoming a haven for game developers. Gato, who produced the Waylanders RPG game, has also said that there are some fantastic stories to be told based on local culture and that gaming studios could even use this to develop games that appeal to the local market. As time goes on, more and more investors are being drawn to the idea of setting up shop within the country, and over time, this will help to increase the entertainment sector.
It could even pave the way for new and interesting developments. If people have more money to invest in their product, this could mean that new niche games are created by indie studios, which would really help market potential.
With the gaming sector thriving right now, it makes sense to think that future growth could bring about some incredible developments. As more studios open and as existing studios expand, new games have the potential to dominate the market while putting the Canary Islands on the map as being one of the best countries in the world for game developers to operate.
