The Irish government has officially expanded the Digital Games Corporation Tax Credit (Digital Games Relief) in 2026, allowing game studios to claim credits for post-release development work. Previously focused on initial production, the revised policy now supports eligible expenditure for up to three years after a game is released.

Quick Facts

  • Tax Credit Rate: 32% of the lowest of eligible expenditure, 80% of qualifying expenditure, or €25 million.
  • Minimum Spend: Projects must have a minimum development spend of €100,000 to qualify.
  • Extended Support: Tax relief now covers post-release development for up to three years.
  • Industry Size: Approximately 2,000 people work in the Irish games sector across 44 core studios.

Impact on Local Studios

The update aims to help studios maintain operations for longer periods and produce higher-quality content. Industry leaders, including Colm Larkin of the trade group Imirt, view the move as a critical step toward creating a more sustainable domestic industry. The credit applies to games fully made in Ireland, though there is ongoing industry interest in extending similar benefits to projects partially developed within the country by larger firms.

Currently, Ireland’s game development scene includes a mix of independent studios and larger external development firms. Notable employers include Black Shamrock, which operates as a division of Virtuos, alongside other international companies like 2K Games, Riot Games, and Larian. Sony Interactive Entertainment has also confirmed plans to enter the Irish market in 2027.

Games From Ireland Showcase

Coinciding with these policy updates, the 2026 Games From Ireland Steam Event is highlighting 150 indie titles developed or influenced by Irish talent. The showcase, organized by Imirt, emphasizes the country's focus on narrative-driven titles, such as Spooky Doorway’s The Séance of Blake Manor and Gambrinous’ Eyes of Hellfire.

The industry's next major milestone is the Nexus Games Conference, which will host discussions on the future of the sector in Dublin from September 23 to September 25, 2026.