As global demand for online gaming surges, Spain’s autonomous city of Melilla is rapidly gaining ground as a high-potential hub for operators seeking fiscal efficiency and EU regulatory stability. Once overshadowed by established jurisdictions like Gibraltar or Malta, Melilla is now emerging as a preferred destination for online gaming investment—thanks to tax incentives, digital infrastructure, and strategic positioning.
In 2024, Spain’s online gaming sector generated €1.45 billion in Gross Gaming Revenue (GGR), with forecasts projecting a 10–15% annual growth rate in 2025, according to data from the Dirección General de Ordenación del Juego (DGOJ). While much of this activity has historically been centered in Madrid and Barcelona, the growth of Melilla—and its counterpart Ceuta—is reshaping the map of gaming jurisdictional powerhouses within the EU.
Melilla’s advantages at a glance:
- Corporate tax reduction: 10% vs. 20% in mainland Spain
- IPSI substitution for VAT: Tax rates between 0.5% and 10% depending on the digital service
- 100% rebate on income tax for professionals relocated to Melilla
- Direct government support for tech infrastructure and training
- EU regulatory protection: Melilla, unlike offshore jurisdictions, remains fully under European Union financial and legal frameworks
More than just tax perks, Melilla has attracted attention due to Spain’s coordinated digital strategy. The national government has backed both Ceuta and Melilla as "digital economy zones", offering not only legal certainty but long-term policy continuity for gaming operators. With over 30 licensed companies already based between the two cities, Melilla is now in direct competition with Gibraltar, which has seen a notable exodus of gaming firms post-Brexit.
Melilla and Ceuta battle to become the “Next Malta” in Online gaming industry
Spain’s approach is notably distinct: rather than replicating offshore financial havens, it has created onshore digital enclaves that integrate fully into European frameworks, ensuring access to SEPA, EU consumer protections, and data regulation via the GDPR.
In parallel, international companies such as Codere Online and Betfred Spain have increased their footprint in Melilla, citing not just the tax treatment but logistical and operational efficiencies—from Spanish-speaking talent to mainland transport links. for investors eyeing the next wave of European gaming expansion, Melilla offers a blend of security, scale, and sovereignty—all within a low-tax, pro-digital environment.
