EU approves expansion of tax credit for video game sector
The European Commission has approved an expansion of Ireland's Digital Game Tax Credit to include post-release content. This policy change aims to support game studios throughout the entire lifecycle of a product, reflecting the modern reality of the gaming industry.
Why it matters
This expansion provides significant financial support to the Irish gaming sector, which is increasingly vital to the national economy.
The European Commission has approved the extension of a tax credit for the video game sector that was announced in Budget 2026.
The Digital Game Tax Credit was originally launched in November 2022, but was expanded in last October's budget to include post-release content.
This was done to recognise that games continue to evolve long after their launch, with new levels, features, updates and downloadable content forming an important part of game development.
The measure offers companies developing digital games a tax credit of up to 32% per qualifying game.
However, take up of the tax credit had been slow, amid claims by game studios that its structure was limiting and that reforms were needed to unlock its full potential.
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