Expanded collection of video games originating from Germany?

The German gaming industry is set to receive a significant boost with the introduction of tax incentives and increased funding, aiming to make the country a more attractive location for foreign game developers and create jobs.

According to NRW Minister of Culture Nathanael Liminski, these tax incentives are a promising investment in Germany's games location, potentially attracting foreign developer studios and generating employment opportunities.

Currently, the German gaming industry faces a cost disadvantage of around 30 percent compared to other countries. To address this issue, the proposed tax incentives will allow game developers to claim certain costs and pay less tax, following successful models from countries like France, Canada, and the UK.

The federal government's plans for the gaming industry are generally viewed positively by industry experts. Green Bundestag MP Andrea Lübcke views gaming as "one of the central innovation and growth industries of the 21st century" and a "significant cultural asset".

CDU Bundestag MP Joachim Ebmeyer and Social Democrat Holger Mann have both called for the quick implementation of tax incentives for game companies. Ebmeyer's stance is that enabling investments today will lead to long-term benefits for the German economy, the federal budget, and the people in the country.

In the short term, such a system would likely lead to lower tax revenues for the federal government and the states, with Bavaria's Minister of Digital Affairs Fabian Mehring suggesting that the federal government would have to compensate for the corresponding losses.

The federal government is set to provide direct subsidies of 88 million euros this year, increasing to 125 million euros by 2026 to boost the German gaming industry. Politicians from various factions, including CDU/CSU, SPD, Greens, and state governments, have signaled approval of the plan to relieve German developer companies of their tax burden.

Some critics, such as Malte Behrmann, an industry expert, view the federal government's plans positively but suggest that the support policy should be realigned in the future. Behrmann argues that game companies that tax their profits in Germany should be favored in terms of tax incentives, as international games conglomerates have so far received German funding but have taxed their profits abroad.

Successful games from Germany include "Anno 1800" by Ubisoft, "Enshrouded" by Keen Games, and "Hunt Showdown" by Crytek. The state's support for the gaming industry is a major topic at the upcoming Gamescom computer games fair, with Federal Research Minister Dorothee Baer (CSU) expected as a guest speaker.

As Germany's tax incentives are still in the planning phase and not yet detailed, the announced system aims to be comparable by allowing cost deductions on taxes to enhance investment appeal, learning from these established models abroad. However, Germany is currently catching up, as France, Canada, and the UK have had operational, well-defined tax relief schemes for years with proven effectiveness.

| Country | Type of Tax Incentive | Key Features | Status in 2025 | |---------|----------------------------------------------|------------------------------------------------------|---------------------------------------| | Germany | Planned tax incentives for cost claims | Aim to reduce taxable income by claiming game dev costs; not yet operational | Proposed, in development, launch pending | | France | Tax Credit for Video Games (TCVG) | Up to 30% rebate on eligible expenses | Established and operational since 2008 | | Canada | Refundable tax credits (e.g., Quebec) | Up to ~37.5% labor cost rebate | Established and highly competitive | | UK | Video Games Tax Relief (VGTR) | Up to 20% relief with cultural test requirement | Operational since 2014 |

Thus, Germany’s tax incentives are designed to follow these successful foreign models but are not yet implemented, aiming for comparable impact through a combination of tax relief and increased direct funding.

Sources: [1] Bundesregierung: Steuererleichterungen für Spieleentwickler [2] Steuererleichterungen für die Spielebranche [3] Bundesregierung will Steuersenkungen für Spieleentwickler [4] Bundesregierung soll Steuersenkungen für Spieleentwickler einführen [5] Steuererleichterungen für Spieleentwickler: Bundesregierung will 35 Millionen Euro in die Branche investieren