22 Aug The Good Thing About Starting a Technology Business in Tenerife
When the first Magnavox Odyssey—the first home video game console in the world—was first introduced in 1972, people didn’t expect it to come to much.At first, sales were weak.The idea met with little support, and few dared to venture into the technology business and develop the necessary software and applications to allow users to play with the “little machine.”
It wasn’t until the famous Pong was introduced that people started to see potential in video game consoles.This marked the start of the video game development industry.
Today, video game development moves over 1.5 billion euros a year worldwide. And the industry has evolved to become part of the 21st-century’s leisure and consumer culture.What we’re talking about is, of course, e-Sports, those video game competitions that, alone, generate over a billion dollars a year.
Given this sort of potential, it’s no wonder that information technology has become a targeted investment for countries and companies outside the sector.
Many incentives can be used to encourage businesses to set up shop in a specific location: financial concessions, improved relations with the rest of the industry, etc. If technological platforms and e-commerce are your thing, Tenerife is a place you would do well to keep in mind.
Tenerife: A Privileged Location for Technology Platforms
Choosing the right location to launch your business is one of the most important decisions you’ll need to make when starting a company. Ideally, you should look for places that offer your company the best possible conditions.
Tenerife offers many advantages, both financial and physical, that make developing technology platforms on the island more convenient and attractive.
The tax scheme is one of the strong points of the Canary Islands.The archipelago boasts the ZEC (Canary Islands Special Zone), an economic regime that offers companies that settle there the most favorable tax system anywhere in Europe.
Worth noting, above all, is the 4% corporate tax rate, the lowest in all of Europe. The region also offers exemptions on the property transfer tax. And companies that move there can also take advantage of other tax incentives through the Canary Islands Economic and Tax Scheme.
The most exciting thing about all this is that you don’t have to start a company from scratch to enjoy these advantages. If you are a big e-commerce company looking to establish an online business in the Canary Islands, all you have to do is install one of your headquarters in the archipelago.
But, if you want to take things one step further and make the best of all the advantages the Canary Islands have to offer technology platforms, it may be in your best interest to set up your research department in Tenerife.
Here, R&D technology platforms can take advantage of a 45% deduction for technological innovation, a figure nearly four times the 12% deduction offered on the peninsula.
Tenerife’s Talent At the Service of Investing Companies
The large number of companies deciding to settle in Tenerife does not limit online business opportunities in the Canary Islands. Whether we’re talking about the digital economy or about starting a video game design business, the island is prepared.
If what you’re worried about is finding a location for your company, you can count on the spaces and plots offered by the INtech Tenerife Technology Park. As far as content development talent, Tenerife has a critical mass of amateurs and professionals to help develop this industry in the medium-long term.
Gaming Experience is a prime example of the potential of the technology platform market in the Canary Islands. Last year, this startup managed to attract a 600,000-euro investment.
We’re talking about, “an online platform where users register and enjoy lots of content. We offer them everything from Gaming Experience events to participation in eSports competitions or watching top-level championships.”
Antonio Cabrera, Managing Director of Gaming Experience
Gofio Games, Daydream Software, and Fire Cycle Games are just some of the independent video game developers located on the island.All of them contribute to the island’s talent pool and are also businesses you can invest in on the island of Tenerife.
The eSports competitions held in Tenerife (such as the LVP final or the international ESL Masters CS:GO) and the sectorial agreements with the Government of the Canary Islands complete the list of ingredients you need to choose Tenerife for your business.
Are you ready to venture into the future with us?
To learn more about the advantages that Tenerife has to offer to the different sectors and industries, download our free ebooks.