Flanders sees 25 per cent rise in gaming companies in a year
The number of gaming companies in Flanders saw a significant rise last year, increasing by a quarter from 90 in 2022 to 113 in 2023. Despite this growth, the Flemish sector federation, FLEGA, says the industry "is being restricted in its growth" and is calling for targeted tax incentives to address these challenges.
FLEGA will announce these figures on Tuesday at Gamescom, the industry event being held in Cologne, where 49 Belgian companies are represented, including 19 from Flanders.
Although the number of businesses is growing, FLEGA says turnover and employment are not keeping pace. In 2023, Flemish gaming companies collectively generated a turnover of 58.7 million euros and employed 565 people.
In previous years, FLEGA reported higher figures, but changes in the calculation method make direct comparisons difficult. For instance, the global turnover of the parent company behind Ghent-based Larian Studios, one of the largest companies in the sector, was previously included. However, in 2023, FLEGA only included the turnover of the studio in Ghent, excluding that of the parent company in Dublin. FLEGA says this approach is "methodologically more correct" because the latter is "not Belgian."
Relocation and taxes
FLEGA says that as soon as a Flemish company starts generating significant turnover, it becomes more advantageous to partly relocate outside Belgium.
"Despite the large talent pool in Flanders and the close-knit ecosystem, companies are being restricted in their growth by our merciless tax system," it said in a press release.
"While the recently granted tax shelter offers oxygen to young game companies to attract investments, this system offers little relief to companies that are already experiencing significant growth."
FLEGA says the challenge for the future federal government will be to create a fiscally advantageous climate and proposes a tax break similar to those in France and England, which result in additional investments.
#FlandersNewsService | © BELGA PHOTO NICOLAS MAETERLINCK
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