Wish You Were Here? A Spotlight On The Canary Islands

The Canary Islands is one of Europe’s most popular year-round holiday destinations, but the autonomous region of Spain (that is closer to Africa than it is Europe) has in recent years attracted the curious eye of a gaming industry looking to explore new horizons. Richie Shoemaker talks to four studios that have successfully settled in the sun.

In terms of population, area and the size of its economy, the Canary Islands are smaller than you might think; comprising half a Yorkshire. In terms of geography and climate, of course, the two regions couldn’t be more different. Only one half of Yorkshire has beaches (20 of them in total) and the county has less than half of the number of rain-free days in any typical miserable, cold January. Meanwhile, it’s T-shirt weather pretty much the whole year round in the Canaries – unless you’re visiting one of the islands’ 500 beaches, where most forms of clothing are of course unnecessary.

But you pretty much knew that already. What perhaps you didn’t know is that the Canary Islands are becoming something of a game development global hotspot (if you’ll excuse the obvious pun), with the established creators of games such as Human Fall Flat – which has outsold anything to have come from Yorkshire aside from perhaps tea or chocolate oranges – being joined by the studios behind other modern indie classics like Blasphemous.

They may need a few more studios to join them before the Canary Islands can really call itself a world-leading development hub, but there’s no lack of desire on the part of the government to attract new businesses to the region, thanks to favourable tax rates (corporation tax is set at 4% for new arrivals) and a generous 45% tax rebate for any investment into the tech and creative sector. I spoke to the heads of four studios that were either established in the region, or well on the way to becoming so, to find out what other delights the Canaries have to offer.

 

 

 

 

 

Can you give us an idea of where your studio is based? Why was the location chosen and what is it like there?

Luca Contato: Rising Pixel is based in Las Palmas de Gran Canaria. The location was chosen for several reasons, including its favourable tax environment for businesses and the unique blend of local talent and potential. The Canary Islands offer an inspiring setting, with a mix of beautiful landscapes and a thriving digital entertainment sector that’s growing rapidly.

Mauricio García: The Game Kitchen originally established its headquarters in Seville. However, we’ve recently expanded by opening a second location in Santa Cruz de Tenerife. It’s here that we’ve relocated one of our most ambitious projects to date: ‘All On Board!’ This innovative live platform will enable players to enjoy any board game in a virtual reality setting.

Santa Cruz presents an ideal blend of pleasant weather and a lifestyle conducive to digital creativity, allowing professionals to flourish while prioritising their well-being. In the city itself, everything is within easy reach. Coupled with reliable and free public transportation, commuting is no longer a concern. This convenience significantly enhances the overall quality of life for our team.

Amina Abdien: Quantum Box Games is located in Las Palmas, close enough to the city centre to walk, but secluded enough to have stunning sea views from the top of the hill where our workplace is situated. We had already planned to come to the Canary Islands, and we chose Las Palmas because we were impressed by the government’s plan for our sector, which is specific to Gran Canaria. We liked it a lot, especially the training component.

Sitara Shefta: No Brakes Games is based in the south of Tenerife, in Adeje. We opened our studio in the south of the island because of the great year round climate, which is a huge benefit of living here, and also because it’s easier for people who aren’t necessarily fluent in Spanish. Because the area is also a tourist hub, you can always speak to people in your first language until you develop your Spanish skills.

We have our own studio villa, with a swimming pool and also a rooftop terrace, which the team really appreciate having access to! It’s nice to do things a little differently to a stereotypical office environment, and allows us to enjoy what we do that little bit more.

What practical or financial support has the business received from local government and business support schemes?

Luca Contato: We’ve received significant support from local entities like ZEC (Zona Especial Canaria) and SPEGC (Sociedad de Promoción Económica de Gran Canaria). Sitara Shefta: The ZEC scheme is a great incentive which reduces corporate tax to 4% for anyone looking to establish a studio.

Initially, I wasn’t fully aware of the extent of these advantages. However, over recent years, it became evident that various fiscal tools are available that help in mitigating costs and enabling tax rebates. These financial mechanisms have been instrumental in our growth and stability, allowing us to invest more in innovation and talent development.

Additionally, ZEC has been a central hub for information and support. It’s where we could find all the necessary answers and guidance regarding local business incentives and support. Their assistance has been invaluable in navigating the financial landscape and maximising the benefits available to us in the Canary Islands.

Amina Abdien: We’ve received significant support from the outset, both from Avalcanarias, a regional SGR, and from SPEGC, which is always keen on providing liquidity to new companies establishing themselves here. There are other tools like SODECAN, which we haven’t explored yet, but we understand could be very helpful.

Perhaps the most crucial tool is the monetisation of the tax credit. As a videogame company, every year we can deduct 45% of our expenses and we have the option to monetise it, receiving it as income the following year, which is a huge help. I think, in any case, that people who come here have to know that as well as receiving – which they are going to receive a lot – they have to come with a desire to contribute and invest in the Islands.

Mauricio García: The local government has been instrumental in our smooth transition to the island. They assisted us in securing a temporary location to commence our operations and facilitated connections with the vibrant local network of animation and game development studios. Their guidance in navigating the existing programs has been invaluable. These initiatives are designed to cultivate and recruit local talent, and we’re excited to contribute to their ongoing refinement.

This collaborative approach ensures that each annual update of these programs is increasingly effective. Financially, we are already realising significant tax benefits during the game’s development phase. This advantage will prove especially beneficial as we transition to the live-ops phase of our project, where such savings can be strategically reinvested.

What is the local development community like? Are you aligned with other studios? If so, how do you support one another?

Luca Contato: The local development community here in the Canary Islands is burgeoning, though still relatively small. But what it may lack in size, it certainly makes up for in camaraderie and willingness to help. The people in this community are incredibly open and supportive, always ready to lend a hand or share insights, which I find truly refreshing.

Sitara Shefta: The local development community continues to grow in the Canary Islands. There have been announcements of more game dev teams establishing here, which is great news for the local industry, and also for local talent or for those looking for opportunities to relocate here.

Amina Abdien: The local studios are very nice to us and we are trying to share work with them. People who were here before us, like Rising Pixel or Play Medusa, have been very collaborative and open, which has been very welcome, of course. Both the work we can share, and the contacts they have from years of being here, is certainly very helpful and we hope to be able to contribute a lot to others in the future as well.

Mauricio García: The local game development community, while currently modest in size, is poised for significant growth. This is largely due to the increasing interest in game development among students and enthusiasts. Additionally, there’s a clear and strategic commitment from the local government to not only attract more companies but also to support local entrepreneurs in the field.

Local studios are already engaging in preliminary discussions to form an association aimed at advancing our shared goals. This collaboration is focused on nurturing the sector locally, leveraging all available resources and expertise.

Moreover, the island hosts several trade shows annually. These events have been instrumental in attracting companies from the mainland and abroad, allowing them to discover the island’s potential – including its appealing tax incentives.

Luca Contato: Interestingly, much of my interaction with other studios, even those based in Spain, often occurs during events held abroad. It’s a quirk of the industry, but it’s always great to connect and share experiences with peers in different settings. These encounters abroad reinforce the importance of community, no matter where we find ourselves.

Additionally, I believe it’s crucial to engage with adjacent industries like animation, music, and film. In the Canary Islands, we facilitate this through various activities such as game jams, ‘beer working’ sessions, and meetups. These events are not just about staying in touch; they’re about creating a vibrant, interdisciplinary ecosystem where ideas can cross-pollinate, leading to innovative collaborations. These interactions enrich our work at Rising Pixel and contribute to the dynamic growth of the local development community.

What networking organisations and events are there?

Sitara Shefta: Tenerife GG is an annual event which has seen great success here, with opportunities for networking, to developer talks, and LAN parties.

Luca Contato: Island Game Jam, ANIMAYO, Startup and digital nomads events. If you start following some of the associations – SPEGC, ZEC, LiveItUp, WIC, AJE Canarias, Canarias Destino Startup – you’ll never be bored!

Mauricio García: Additionally, there’s Acadevi, a highly active entry-level association. They organise meetups and game jams, often participating in the Global Game Jam, which provides a great platform for emerging talent.

As previously mentioned, we’re in the early stages of forming a local association of development companies. Our aim is to have this association operational within the year, further solidifying our commitment to the growth of this sector on the island.

How would you describe the business infrastructure within the region and the connectivity beyond it? Can you get the resources, space, services, etc that the studio might need easily enough?

Luca Contato: The Canary Islands boast a robust business infrastructure (that’s why we are on top 10 on Digital Nomad list!), with good connectivity both locally and internationally. The region offers the necessary resources, space, and services for studios like ours to thrive. We can access the tools, technology, and
professional services we need efficiently.

Mauricio García: We face no difficulties in obtaining the physical resources necessary for our operations. However, it’s important to note that the majority of our resources are digital and can be sourced from anywhere in the world. This global accessibility is a significant advantage in our line of work.

Additionally, the local government plays a crucial role in fostering industry connections. They organise commercial missions that bring publishers and studios from around the globe to the islands. These events provide a valuable opportunity for local studios to showcase their projects and establish contacts with international entities.

… and for prospective employees, in terms of travel, housing, cost of living and quality of life?

Amina Abdien: The quality of life on the Islands is amazing, the climate is wonderful, the prices are inexpensive compared to European capitals and we have extra advantages, such as flights to the rest of Spain costing 75% less. A €100 plane ticket here costs €25.

In addition, the general tax on products, which in Spain is IVA and it’s 21%, here in the Islands is only 7%. So, obviously, someone who earns the same salary here as in Madrid actually earns considerably more money here.

Mauricio García: The cost of living in this region aligns with the general expectations for mainland Spain. However, it remains noticeably more affordable compared to major cities like Madrid, Barcelona, and Valencia. This affordability makes it highly competitive when compared to most other European cities.

Sitara Shefta: The island is becoming more and more accessible every year, with two airports providing access to most major European cities. The cost of living is generally pretty cheap compared to most major cities, however housing has become an ever-growing issue here with less being available for residents in favour of tourists, and therefore inflating property and rental prices – this is something we hope the local governments will provide solutions for, to support new and existing businesses, in being able to provide housing at a more affordable cost for team members, as it was just a couple of years ago. However, the quality of life overall is great – it’s not often you get to make games in a sub-tropical climate on a volcano!

Luca Contato: Gran Canaria, despite its relatively small size, is often referred to as a “miniature continent” due to its diverse landscapes. From stunning beaches to rugged mountains, the island offers a plethora of environments to explore, catering to a wide range of preferences and lifestyles. This diversity not only enhances the quality of life but also provides a continual sense of discovery and adventure for those living and working here.

However, it’s important to acknowledge that with the increasing influx of people and companies to the Canary Islands, there has been a consequent rise in housing costs. While this is a notable downside, many find it offset by the unparalleled quality of life the islands offer. The unique blend of cultural vibrancy, natural beauty, and a relaxed lifestyle creates an enviable living environment that continues to attract talent from around the world.

Mauricio García: The housing market presents its own set of challenges. Although property prices are rising, they are still quite competitive. The main issue lies in the limited availability of rental apartments at any given time, which means there aren’t many options to choose from. On the brighter side, purchasing property is relatively easier in terms of availability, and the prices are reasonable.

While the island boasts an excellent public transportation network for commuting to work, owning a car is recommended to fully experience and enjoy all that the island has to offer.

The region is known for its tourism rather than tech industries – is there a healthy ecosystem of creative and tech businesses that you can recruit from?

Sitara Shefta: Not yet, but with remote working or relocation options available for the team, this is no longer a problem as it’s really opened up our talent pool. Having access to the whole of Europe, (compared to what’s now possible in the UK), has also been a great relief and benefit of being located here.

Mauricio García: The success of tax incentives in the film and animation industries over the past five years has led to a significant increase in the number of creative companies and agencies on the island. This growth has made it relatively easy to find both companies and skilled professionals working in sectors that align with or complement our own.

Amina Abdien: I think we still need more seniors, [but] there are certainly a lot of people to hire and a good number of technology companies, programmers and artists, but they are still people who come from other sectors, such as animation, rather than people from the video game sector.

Luca Contato: Despite the Canary Islands’ reputation as a prime tourist destination, there’s a thriving ecosystem of creative and tech businesses beneath the surface. Initially, one might not see it, but the islands are also renowned for their burgeoning film and animation industry. This presence greatly benefits the video game industry, providing a pool of local talent already skilled in many areas overlapping with game development.

In terms of recruitment, my team at Rising Pixel is predominantly composed of locals from the Canary Islands, supplemented by professionals from the Spanish mainland and a few from other European countries. Being part of Europe, we have access to a vast talent pool. The offer to relocate and work in what many consider a paradise is an attractive proposition for many. Who wouldn’t want to seize the opportunity to combine their professional aspirations with living in such a beautiful and nice location?

What about education? Are there enough students and graduates to supply entry-level industry talent?

Luca Contato: The region is home to universities and professional schools that are increasingly focusing on digital entertainment and tech education. These institutions are producing a steady stream of graduates and entry-level talent suitable for the gaming industry. Still some space for improvement in this aspect to reach a higher standard is still needed.

Sitara Shefta: There are so many new students and graduates looking for their first job in the industry here in the Canary islands, and with local education also looking to partner and collaborate with studios, it’s been a great benefit to everyone.

Amina Abdien: Right now the schools and university here are generating many more students annually that we can hire. Currently, the talent drain is a big problem here, people finish their studies and when they don’t find work quickly, they go to other cities in Spain or even to other countries to look for work, which is understandable…

Mauricio García: Sourcing talent for entry-level roles on the island has been smooth and unproblematic. While it’s true that the number of educational institutions is currently limited, this has not hindered our ability to find a balanced mix of junior and senior talent. In fact, sourcing junior talent for substantial growth has been quite feasible.

There’s a commendable college university here, producing software engineers with a keen interest in game development. Adding to this, we are excited about the opening of an official Unreal school next year, which promises to further enhance the local talent pool.

What is the best thing about being based in the Canary Islands?

Sitara Shefta: The lifestyle and the climate.

Amina Abdien: I think that, apart from everything I have said, the best thing is definitely how lovely the people are. Always friendly, always caring, it’s something you notice very quickly when you get here. They make you feel at home even though you are thousands of kilometres away from your city.

Luca Contato: I came here for the taxes, but I stayed for the people!

Mauricio García: Undoubtedly, the substantial tax deductions available here are a significant advantage. They not only facilitate the securing of resources needed to bring your creative visions to life but also aid in finding the right partners for funding or publishing. The financial conditions offered as a result of these tax incentives are unmatched in many other locations, making them a highly attractive proposition for any studio looking to establish or expand its operations.

What about downsides?

Amina Abdien: Online shopping! You have to completely forget about buying on Amazon and having it arrive within 24 or 48 hours. Because of local customs, everything takes longer.

Mauricio García: Living on the island requires a shift in expectations regarding online purchases. Here, one must learn the nuances of when and where to order from to ensure that items are delivered within a reasonable timeframe. This adjustment is part of adapting to island life, where logistics and timing differ from what we might be used to in more urban or mainland settings.

Amina Abdien: You just have to get used to moving around a bit more and go to local shops!

Luca Contato: One challenge is the relative infancy of the tech and gaming sectors compared to more established regions. This sometimes means working harder to build awareness and connections within the global gaming industry.

Sitara Shefta: The industry here is still relatively small, so sometimes the resources you might normally have access to elsewhere, just aren’t available here yet. But equally, that’s quite an exciting opportunity in itself as it means that anyone looking to establish a studio here has an opportunity to help contribute to the growth and shape of what the game development community could become here. It also pushes you to think a bit more outside-the-box and find creative solutions to what could otherwise be perceived as problems, for instance, open a studio villa if you can’t find a traditional or suitable office space.

Is there anything you would change about The Canary Islands to make it a more attractive destination for gaming businesses?

Luca Contato: If I had a way to enhance the industry in the Canary Islands, it would definitely be to spawn more publishers and investors into our game world. We’ve got a great party of talented developers and an increasing number of creative studios – now we just need that extra boost in resources and support to really level up our play.

Sitara Shefta: I think the Canary Islands are already taking positive and proactive steps to support the gaming industry, and the more this continues, the more attractive it will become as a destination for any gaming studio.

Mauricio García: I believe a key strategy would be to persuade several major video game companies to either open new offices or relocate existing ones to the island. This move could significantly enhance our ability to attract talent from outside the island. Additionally, encouraging more established specialised schools to set up here would be instrumental in developing the necessary talent pool, especially as the demand for skilled professionals grows.

Lastly, implementing a strategic line of public funding specifically for new projects and start ups on the island could lead to a stronger foundation for entrepreneurial game developers. Such financial support would not only foster innovation but also solidify the island’s reputation as a burgeoning hub for the gaming industry.