Ceuta: a Tax Hub for Tech and Crypto Companies

Ceuta: a tax hub for tech and crypto companies

Overview

Can Ceuta be a hub for tech and crypto companies in Spain? In this MERGE Madrid panel, a tax advisory, the law firm Asencia Abogados and LMP (a Bitcoin Lightning payment gateway) share their experience with the Autonomous City of Ceuta: the transformation of its economic model, its tax incentives, the online gambling success case and institutional support.

What you'll learn

• The model shift: why Ceuta bet on technology from 2019
• Tax incentives: gambling tax, corporate tax, income tax and social security
• The online gambling case: relocation from Gibraltar after Brexit
• Institutional support: the “red carpet” for new companies
• Talent: subsidized training programs tied to hiring
• Legal certainty: Ceuta as part of Spain and the EU

Session summary

The model shift: the tax advisory explains that, faced with Brexit, the closure of the border with Morocco and the pandemic, Ceuta decided to transform its economy and attract tech projects, with a key legislative change: cutting the gambling activities tax from 20% to 10%.

Tax incentives: it details that Spain's tax system is subsidized in Ceuta (corporate tax, income tax with a 60% deduction for residents, a 50% social security rebate, according to the talk), so a project with a 10% return on the mainland could approach 23% in Ceuta (an example cited in the talk).

The online gambling case: after Brexit, many online gambling companies left Gibraltar and relocated to Ceuta; according to the talk, more than 30 of the 65 operators licensed in Spain are already there, generating local jobs.

Institutional support and talent: Asencia Abogados highlights the accessibility of the institutions (a “red carpet” for premises, staff, notary and registry) and the subsidized training programs tied to subsequent hiring.

A crypto company: LMP (a Bitcoin Lightning gateway, with an R&D&I seal) shares the tech sector's experience and the closeness of the ecosystem; it stresses that Ceuta, being part of Spain and the EU, offers legal certainty, a validated tax regime and a broad network of double-taxation treaties, as an alternative to retain talent and companies in Spain.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with Asencia Abogados, LMP and a tax advisory on Ceuta as a tech hub.

FAQs

Why does Ceuta attract tech companies?
According to the talk, for its tax incentives, its legal certainty (it is part of Spain and the EU) and strong institutional support.

What tax incentives does it offer?
According to the talk, a subsidized tax system: a lower gambling tax, corporate tax rebates, an income tax deduction and a social security rebate.

Why did online gambling companies relocate?
According to the talk, due to Brexit (which forced them to leave Gibraltar) and Ceuta's tax advantage within the EU.

Is this tax or legal advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute tax or legal advice. Consult a professional for your specific situation.