Spanish autonomous city Melilla has introduced a special tax regime for iGaming companies conducting their operations in the jurisdiction in an effort to strengthen its position as an iGaming hub and improve economic activity.
Although the city’s gambling activities will still be supervised by the Directorate General for the Regulation of Gambling (DGOJ), which is Spain’s national regulatory authority, Melilla will implement a new fiscal system covering iGaming taxes for operators that are fully based in the city.
According to Loyra Abogados partner Patricia Lalanda, qualifying operators will receive benefits like a 50% reduction in corporate income tax liability, which could bring the effective rate to approximately 12.5%. Additionally, companies that meet the established standards will be allowed to pay a 10% tax rate on gross gaming revenue, as opposed to Spain’s national 20% rate.
Patricia Lalanda shared with SiGMA:
“Today, Melilla is no longer a concept or a policy initiative; it is an established business environment. The key question is not whether obtaining a license becomes easier by establishing operations in Melilla; it does not, but whether the business can genuinely build part of its operations there in a way that satisfies the legal requirements of the special tax regime.”
Alongside the tax incentives, the city will also offer personal income tax refunds, as Melilla will provide a 60% rebate for residents.
However, the advantages can only be applied in specific cases, which requires iGaming operators to place their offices, operational processes, and management functions in Melilla.
