24.10.28~11.03 - 11.03 - MetAI and the Canary Islands: Bridging Spanish and Japanese Games and Anime
We traveled to Spain after MetAI, along with 17 other companies including EA, Amazon Games, and SEGA, were invited by the Canary Islands Government to explore new possibilities for bridging Spanish and Japanese games and anime!
The Government of the Canary Islands, Spain, invited our company, MetAI, along with 17 companies including EA, Amazon Games, and SEGA, and we traveled to Spain to explore new possibilities for connecting Spanish and Japanese games and anime in the future!
Major gaming companies show interest in the Canary Islands
This past Tuesday, Proexca and the Government of the Canary Islands welcomed what they called "the most important gaming industry mission to date." A delegation from 17 international studios based in the United States, Japan, South Korea, the United Kingdom, Canada, the Netherlands, Poland, and Denmark—including major game publishers such as Amazon Games, Electronic Arts (EA), and SEGA—visited Tenerife to explore the tax and legal benefits of establishing operations in the archipelago.
Other studios that took part in the Proexca meeting included Artic7 Studios, Guerrilla Games, Kodansha VR Lab, Krafton, MetAI LLC, Miracle Mile, Neople Inc, Picona Inc, Sharkmob, Smilegate Holdings, Strategy First, Unseen Inc, and Wildman Inc.
Benefits
Registering with the Special Economic Zone (ZEC) offers two main advantages for studios setting up on the islands:
- A corporate tax rate of just 4% (compared to 24% on the Spanish mainland)
- A tax credit allowing deduction of up to 45% of expenses in the gaming sector and up to 54% in the animation sector
These incentives are legally guaranteed under the economic and fiscal regime and are recognized at both the constitutional and EU level. Pilar Moreno, Investment Director at Proexca, emphasized to the industry leaders gathered in Tenerife on Tuesday that "we are not a tax haven."
The tax credit system
When it comes to tax incentives, Proexca places particular emphasis on the tax credit, which allows companies to recover up to 45% (or 54% for animation) of every euro spent developing a video game up through the creation of its first playable version.
To qualify, the spending must take place in the Canary Islands, and the developer's tax headquarters must also be located on the islands. Companies can access this tax credit either by establishing a studio within the archipelago or by partnering with an existing studio under an agreement covering the reimbursement of a share of expenses.
An industry-ready environment
The tax benefits are only part of the story. The Canary Islands are already home to a mature industry—with 30 game studios and 24 animation studios in operation employing thousands of people directly—making them an ideal location for video game development. In addition, five universities and vocational training centers across the islands offer specialized programs that train thousands of students for an industry known for low turnover and strong employee retention.
Combined with European-standard infrastructure, the Canary Islands' position as a communications and business hub with West Africa, and an exceptional quality of life, these factors make the islands one of the best choices for growing this industry.