Spanish Enclaves Ceuta and Melilla Lure Online Gambling Firms with Tax Breaks

After Brexit, several gaming companies left Gibraltar for Malta, but 16 of them have settled in Ceuta and Melilla during this period, according to data provided by the two autonomous cities to El Periodico de España. In total, Ceuta has 38 gaming companies and Melilla, 23. The two autonomous cities benefit from major tax advantages and are within the European Union. "Ceuta is the best place in Europe for iGaming. Our operations are exempt from VAT," it reads on the website launched to attract gaming companies to Ceuta.

In Ceuta, gaming companies can have a 10% reduction on taxes related to gaming activities in Spain, 12.5% on corporate tax, 75% on wealth tax, 60% on personal income tax and 50% on inheritance and donations... All these advantages aim to compensate for the geographical situation of Ceuta, which is isolated from the rest of Spain and surrounded by Morocco. In 2022, two gaming companies moved from Gibraltar to Ceuta. Since 2018, eight online gaming companies have set up in Ceuta as well as in Melilla.

According to Andrew Lyman, executive director and head of regulation, Gibraltar is not being abandoned in favor of Ceuta and Melilla. "Gibraltar retains many brands that operate in the UK and 72% of Gibraltar’s activities are oriented towards the UK," he specified, assuring that Gibraltar will probably become more of a gaming service center than an operational center. By opening an office in Ceuta, operators want to "optimize their tax situation," he explains.