DEV and AEVI present the report on the impact of Tax Incentives in the video game industry

2023-12-20 12:13:44

A tax guarantee will allow the conversion of Spanish video games to be multiplied by four

• Both parties request to change 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 investment will have a positive effect on the consolidation and development of video game production companies in Spain.
• Growth in billing is expected in 2028 that will multiply the figure for 2022 almost by 4. Which will mean over 5.5 billion euros in 2028.
• Employment will increase by 2.3 in eight years, over 23,000 jobs by 2030.
• The first European countries around us (France, Italy, Belgium, the Netherlands and the United Kingdom) have implemented this measure.
• Download the report here:

Madrid, December 20, 2023

Spanish Association of Production and Development Companies of Video Games and Entertainment Software (DEV) together with the Spanish Video Games Association (JUICE), presented iReport on the impact of the application of tax incentive programs for investment, business development and employment in the video game production industrydone by the Carlos III University of Madridunder the direction of Professor Julio Cerviño.

This is an analysis of the estimated potential impact of the harmonization of tax reduction and incentive measures, if applied to the production of video games as part of the cultural sector.

Two groups asked amend articles 36 and 39 of the Corporate Tax Law with the aim that the video game industry has tax incentives for the production and recruitment of international projects, as the audio industry, performing arts, and live music have already received.

The Spanish video game production company has a turnover of 1,435 euros in 2022, with a forecast of 3,403 million for 2028, if tax incentives are not accepted. A situation that can change positively if they use it, with an estimated increase of around 27.4%, over 5,000 million euros in turnover by 2028which would mean a growth of up to four times.

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

These types of deductions are already used in other cultural industries such as film productions, audio series or live performances and music shows, which have significantly improved their competitiveness since its launch. Likewise, it is a financial strategy that has already been established in many leading countries in our region such as France, the United Kingdom or Italy and major powers in the sector such as Canada and the United States.

Reductions in tax rates will not mean a reduction in tax collection, but rather the opposite, due to the effect of increased sales. In the case of a 20% tax deduction, Tax collection will increase directly by 2%. To this direct effect will be added the positive financial effect of indirect effects (investment in the company and power to suppliers) and induced effects (salaries and income through income).

All these motivations will mean a motivation to attract new projects and capital investment, both national and international, which the survey measured at 80%.

To these quantitative results public spaces will have to be added in terms of attracting and retaining talent, as well as the impact on the development of the infrastructure and ecosystem to support the sector (educational programs, laboratories, development clusters, new R&D&I programs), as well as the positive impact in survival , consolidation and development of companies.

In the case of Spain, we see tax incentives in many sectors such as audiovisual, with very good results in terms of capital investment, production and work. Likewise, it is a financial system that has been established in many countries around us. Despite the support of recent years, The department requests measures to promote the production of video games in our country.

“This measure, requested for a long time by the sector, has been supported by all political parties” in the announcement Antonio FernandezThe general secretary of DEV, who adds: “In a global market, where competition between countries is very important, without tax reduction in Spain, a large part of the productions will not be established.”

Jose Maria MorenoThe general director of AEVI, said: “At AEVI, we are happy that the whole sector is coming together to request these efforts that will allow us to compete on equal terms with other global markets of reference.”

You can download the document presented in the report on the impact of Tax Incentives in the video game industry from the following link:

About DEV

The Spanish Association of Video Game and Software Development and Development Companies – DEV – represents the interests of one hundred Spanish and international video game development companies based in Spain and entities that committed to the evolution of this sector. Its purpose is to advocate for the recognition of its organization as a strategic, high-tech company, a driver of new business models, a job creator and an international producer of our culture.

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