Since 2011, the Malta digital games Industry has developed rapidly becoming one of the burgeoning industries in Malta in a short span of time. This is mainly attributed to the Government’s policies aimed at making Malta a digital hub as well as the availability of a widespread range of incentives that address the needs of the Malta digital games companies at the initial conceptual stage, during R&D as well as during the internationalization and marketing of the digital gaming product.
Incentives for Malta Digital Games Operators
The incentives and schemes available include:
- tax credit relating to expenditure incurred in acquiring or developing tangible and intangible assets
- financing to new digital gaming start-ups and enterprises engaged in new markets, new technologies, novel products or services that demonstrate a potential for job creation and growth
- tax credit for research and development of digital gaming projects
- co-financing of wages of employees, leasing of equipment and amenities in the case of SMEs
- co-financing up to 50% of costs incurred for market development to encourage more digital gaming enterprises to internationalise
In translating these Malta digital games incentives into finalised products, Malta offers a highly skilled workforce that addresses the cross-disciplinary skills required by the digital gaming industry, including sound designers, musicians, artists, game designers, programmers and level designers. As a jurisdiction that gives access to protection of intellectual property in the European and international markets, Malta digital games companies may protect their artistic creations or distinguish the goods and services from those of other traders through straight-forward or hybrid solutions and in a jurisdiction that offers favourable tax treatment.
Beyond the legal and financial advantages of setting up shop in Malta, Malta is an attractive jurisdiction for competitive property prices, incredible location, high quality of health care, safety and stable economy. The advantages granted to Malta digital games companies extend themselves to advantages granted to the professionals working with these companies. At the forefront is the advantageous flat rate of income tax rate of 15%.
Tuned to the exponential growth potential of the i-gaming industry, Malta presents itself as a jurisdiction apt to address the dimension of the digital games market. The fast-pace of the Malta digital games industry and the governmental action to the industry are translating into varied opportunities for new start-ups to conceptualise new projects while permitting existing operators to explore new niches obtaining edge on competitors.
Malta Digital Games Association
As a result of the growth of the Malta digital games industry, the Malta Digital Games Association (MDGA) was launched in December 2014. The MDGA is an industry body aimed at promoting co-operation between digital games industry leaders in Malta, educating the public regarding digital games, and making Malta more attractive as an international digital gaming hub.
The Malta Digital Games Association was launched with eight founding members including some of the most renowned names in the Malta digital games industry, Chetcuti Cauchi Advocates being one of the founding members. The firm has been involved in the industry since its inception in Malta and has been at the forefront of initiatives which facilitate and promote the expansion of the industry, whilst representing investors choosing Malta as the hub for their digital games business.
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