DEV and AEVI present the Report on the impact of tax incentives in the video game industry

2023-12-20 12:13:00

A tax incentive would allow the turnover of Spanish video games to quadruple

• The two associations are calling for amending Articles 36 and 39 of the Corporate Tax Law so that the video game industry has tax incentives for the production and recruitment of international projects.
• The application of tax deductions to investments would have a positive influence on the consolidation and growth of video game production companies in Spain.
• In 2028 we would expect a growth in billings that would almost multiply that of 2022 by 4. Which would mean exceeding 5.5 billion euros in 2028.
• Employment would multiply by 2.3 in eight years, exceeding 23,000 jobs by 2030.
• The major European countries around us (France, Italy, Belgium, the Netherlands and the United Kingdom) have implemented this measure.
• Download the report here:

Madrid, 20 December 2023

The Spanish Association of Video Game and Entertainment Software Production and Development Companies (DEV) together with the Spanish Video Game Association (AGE), they presented the iReport on the impact of the application of tax incentive systems for investment, business growth and employment in the video game production sectormade by Carlos III University of Madridunder the direction of Professor Julio Cerviño.

This is an analysis of the estimated potential impact that the harmonization of tax deduction and incentive measures would have, if applied to the production of video games in the cultural sector.

The two associations ask themselves amend Articles 36 and 39 of the Corporate Tax Law with the aim that the video game industry will have tax incentives for the production and recruitment of international projects, as the audiovisual industry, performing arts and live music already receive.

The Spanish video game production industry had a turnover of 1,435 million euros in 2022, with a forecast of 3,403 million for 2028, if tax incentives are not obtained. A situation that could change positively if these were applied, with an increase calculated at around 27.4%, exceed 5,000 million euros in turnover by 2028which would mean growth of up to four times.

The application of tax incentives would multiply employment in the sector in Spain by 2.3 until 2030, which It would mean exceeding 23,000 jobs in 2030.

These types of deductions are already applied in other cultural sectors such as film productions, audiovisual series or live performing arts and music performances, which have significantly improved their competitiveness since its launch. Likewise, it is a tax framework already established in several leading countries in our environment such as France, the United Kingdom or Italy and in large powers of the sector such as Canada and the United States.

The reduction in tax rates would not imply a decrease in tax collection, but rather the opposite, due to the increase in sales. In case of 20% tax deduction, Tax collection would directly increase by 2%. To this direct effect would be added the positive fiscal impact of indirect effects (reinvestments in industry and consumption to suppliers) and induced effects (wages and income through income).

All these incentives would mean a impulse to attract new projects and capital investments, both national and international, which the study quantifies as 80%.

To these quantitative results externalities should be added in terms of attracting and retaining talent, as well as impact on the development of an infrastructure and ecosystem to support the sector (training programmes, laboratories, development clusters, new R&D&I programmes), as well as a positive influence on survival , consolidation and growth of companies.

In the Spanish case we find tax incentives in different sectors such as the audiovisual one, with very positive results in terms of capital investments, production and employment. Likewise, this is a tax framework already established in several countries around us. Despite the support of recent years, The sector is calling for measures to definitively relaunch the production of video games in our country.

“This measure, which has been requested for some time by the sector, was supported by all political groups,” he says Antonio Fernandezsecretary general of DEV, who adds: “In a global market, where competition between countries is very important, without the tax deduction in Spain, a large part of the productions will not be formalized.”

Jose Maria Morenogeneral director of AEVI, declares: “We at AEVI are pleased that the entire sector is coming together to ask for these incentives which will allow us to compete on equal terms with the other international reference markets.”

You can download the documentation presented in the Report on the impact of tax incentives in the video game sector from the following link:

Above DEV

The Spanish Association of Video Game and Entertainment Software Production and Development Companies – DEV – represents the interests of around a hundred Spanish and international video game development companies based in Spain and entities involved in the evolution of this sector. Its objective is to support its institutional recognition as a strategic, highly technological industry, a driver of new business models, a generator of employment and an international exponent of our culture.

www.dev.org.es / Twitter profile / Facebook page / LinkedIn profile

Mwings informationfrom: Lucia Jurado /

This email address is protected from spambots. You need to enable Javascript to view it