From one bet to another. After becoming one of the European meccas of online gaming, Ceuta is now proposing itself as the new El Dorado of the influencers an alternative to Andorra with a mix of tax advantages, quality of life and good communications with Malaga or Algeciras. Local authorities argue that the small enclave embedded in North Africa, measuring 18 square kilometres and with some 80,000 inhabitants, is “much more” than the “not very flattering” image that is usually held of it, linked to immigration.
“The influencers They are a new venture and the Andorran press is giving them visibility. But it is not about confronting anyone: the main focus is on digital creators who reside in our country. Let them get to know Ceuta and, if they like it and see that it is more profitable, let them come,” says Enrique Reyes, managing director of Tax Services in the autonomous city.
From Andorra, they downplay the new Ceuta competition and highlight the advantage they have had for years, when artists, athletes and – in the latest wave – also content creators began to settle in The Rubiussparking yet another controversy over changes of residence, real or fictitious, motivated by the low taxes of the Principality. A move that does not cause concern there, but which has generated noise.
“We are not targeting a single segment of the population and, if they move their residence to Andorra, it is not only for tax reasons, but because we have a good security framework (crime is low), quality public services, public transport and a privileged environment,” says the Minister of Finance of the Principality, Ramon Lladós, who highlights the period of economic opening and the end of times as a tax haven: for Spain, it ceased to be one in 2011.
Andorra has not stopped increasing its recruitment of people with high economic capacity, which has allowed an increase in the declared wage mass thanks to the benefits of having a 10% tax on personal income tax for incomes above 40,000 euros, identical to the corporate tax. “The wage mass declared in income tax has grown between 15% and 20% annually over the last three years,” explains the Andorran Treasury Minister.
To make yourself known in the world of influencerslocal authorities have just launched Ceuta Influencesan event that will be held between September 11 and 15, and which aims to attract digital creators and show the friendlier side of the city. Starting, of course, with its low taxes: “We believe that Ceuta could be a good candidate/alternative, without leaving Spain, either out of patriotism or to avoid being discriminated against as many of its peers have been for paying taxes in another country (such as Andorra),” It is read on the meeting’s website.
Taxation is less attractive than Andorra, but more so than the Peninsula
Ceuta’s tax system is less attractive than Andorra’s as a whole, but it is more advantageous than that of the Peninsula. The reason is that, although the system is the same, Ceuta has powerful incentives, as do Melilla, the Balearic Islands and the Canary Islands. A strategy also used by other EU countries to encourage activity in their peripheral territories.
The IRPF is subsidized at 60%; the corporate rate is half that of the general rate (12.5% compared to 25%); VAT is not applied, but IPSI (Tax on Production, Services and Importation), with lower rates of between 0.5% and 10% —”for the gaming sector it is 0.5%, much lower than the general VAT rate of 21%,” explains Rebeca Silanes, from the tax-accounting area of Lefebvre—; the employer’s contribution to Social Security is subsidized at 50%. In addition, since 2018, the tax on gaming on-line It is 10% for companies established in the city compared to 20% on the peninsula, which has triggered a constant trickle of arrivals of companies from the peninsula and also from tax havens for the sector, such as Malta and Gibraltar.
Although Ceuta offers bonuses and deductions, the overall tax rate in Spain is still higher than in Andorra. However, the combination of bonuses and deductions in Ceuta could make the tax regime competitive. Especially if these tax advantages are actively promoted to digital creators.
The incentive for gambling – which also applies in Melilla – was promoted by the PP Government with a modification to the law regulating the sector in the 2018 Budget. The change did not come about by chance. Two years earlier, Brexit was consummated, and with it the exit from the EU of Gibraltar, a tax haven for gambling and many other sectors. It was done then because Gibraltar was no longer part of the EU and had no free provision of services.
Considering that there are territories inside and outside the EU where taxes are lower, a weapon is given to compete in a place where other economic activities are not possible. “Either you give these territories subsidies or tax incentives,” explains the tax inspector Francisco de la Torre. “Businesses that can be located in a city with limited space are sought. Companies must prove that they are really based in Ceuta,” adds Xavier Xivillé, a lawyer at Cuatrecasas.
Economic boost
Since then, 30 gaming companies have settled in Ceuta, many of them during the pandemic, which have generated 851 direct jobs in an enclave in which The unemployment rate is close to 30%, almost three times the national average. Among them are giants such as 888, Betway and Sportium. If the auxiliary firms are added, there would be about 20 more companies, according to Reyes.
“More than 50% of the gaming companies operating in Spain have their headquarters in Ceuta. The impact on tax collection is not significant for the city, but we have obtained real wealth through the creation of jobs, the rental of office premises, general consumption…,” says the managing director of Tax Services in the city. “We are making an effort to offer trained personnel, we organize and finance customer service courses, and the fight against fraud.”
Alberto García Varela, managing partner of EY in Andalusia —the consulting firm that advises Ceuta Influences—, explains how the tax incentives enjoyed by the autonomous city have been a fundamental lever as the economy has become less dependent on the trade of goods and more on digital services. This includes the reduction in tax rates on gambling, approved when he was Director General of Taxes at the Ministry of Finance. “Companies now see greater profitability and legal security in Ceuta. The city makes it easier for them and is business friendly. Ultimately, they see it as a place to do business,” he says.
“Although Ceuta offers bonuses and deductions, the overall tax rate in Spain is still higher than in Andorra. However, the combination of bonuses and deductions in Ceuta could make the tax regime competitive, especially if these tax advantages are actively promoted to digital creators,” adds Lefebvre’s Silanes.
Obstacles
Ceuta blogger Angi Alzar, known as @angicupcakeshowever, expresses doubts about the commitment to influencers. He mentions the obstacles to trade that exist in the city: “Customs puts many obstacles in our way and collaborations with brands often depend on the courier service. If a brand cannot send you the products to do the job, it is all problems. I don’t know if Ceuta will want to attract influencers or not, but with this barrier I see it complicated. I doubt that someone dedicated to
the business 100% on-line “come on.”
“Online gaming also has influencerswhich are known as tipsters [una especie de oráculos que apuntan qué apostar]. Betmedia has already confirmed that it will bring five,” Reyes adds. “The gaming sector has meant the beginning of a new technological era in our city and has generated more than 1,000 direct and indirect jobs for us, which is why we have opened the doors to it. If Madrid gives us a tax advantage, we are not going to enjoy it secretly and we must give it the widest possible publicity.”
Follow all the information of Economy and Business in Facebook and Xor in our weekly newsletter
#Ceuta #queen #online #gaming #hunter #influencers
