Codere to Shift Digital Operations to Tax Haven Melilla

Leading Spanish multinational company, Codere, decided to shift all of their online gambling operations to the Spanish autonomous city of Melilla…

…in order to avoid high tax rates in this country on the Iberian Peninsula.

More Companies Interested

The authorities from this Spanish enclave situated on the North of Africa confirmed that Codere’s sports betting branch, Codere Apuestas, officially moved their headquarters to this city.

Melilla vice president, Daniel Conesa, told to the press that four other companies also showed interest in moving their offices to this city that is actually sharing a border with the African state of Morocco.

Great Conditions

So, just how good are tax rates in Melilla if more and more companies are considering moving their offices there?

Well, the city is offering a 10% tax rate on gambling revenue…

…which is half the rate that the government is charging on the Spanish mainland.

Although the Spanish authorities made a revolutionary change in July of 2018 and slashed online gambling taxes from 25% to 20%, the rates are still super high in comparison to the rates in Melilla.

The executives of territory also decreased rates on value-added tax for technology firms in order to attract online gambling companies and inspire them to move their headquarters to this autonomous city.

The similar conditions can be found in Melilla’s sister city Ceuta, that is also in the Northern portion of the African continent, so the ultimate goal of both cities is probably to become new tax havens.

Competition is On

Some Gibraltar at the moment are also considering moving to Melilla and Ceuta in the future…

…if the conditions remain favorable.

After UK’s Brexit, in order to retain access to EU markets, but at lower costs, many companies have also decided to move to Malta because of the better business conditions.

Expansion of Codere

Codere is a leading Spanish multinational company in the European private gaming sector founded over thirty-three years ago. In Europe, the company has offices in Spain and Italy…

…while in Latin America offices are situated in Argentina, Mexico, Colombia, Panama, Uruguay, and Brazil.

Codere is the only Spanish gaming sector company that has been listed on the stock exchange since 2007.

Mexican Headquarters

Somewhere around the end of 2018, Codere renewed its license for maintenance of gambling operations in Mexico. Also, the company signed a multi-year deal with the NBA in regards to advertising this US basketball league in their retail shops throughout Mexico.

“Our partnership with the NBA reinforces our values and leadership position of trust and fair play. Respecting the rules of the game is part of our DNA, and our partnership with the most competitive league in the world exemplifies that. Together, we are thrilled to offer better experiences to our clients and add more excitement to the game, if that’s even possible,” said Angel Fernandez, Codere’s marketing director.

Source:

”Codere shifts online gambling operations to tax-friendly Melilla”, calvinayre.com, January 23, 2019.