The increase in tax incentives approved at the end of last year has given new impetus to the attraction of large productions. And this confirms Spain as a very competitive destination compared to other European territories

The modification of the incentive mainly affects the increase in filming days for international production companies, which formerly went to other destinations with more attractive incentives.

With the new regulations, international series shooting in Spain are eligible for a deduction limit of 10 million euros per episode, while for international film shoots, the tax reduction limit has increased from 10 to 20 million euros per project.  

For the Canary Islands, the incentive is now 18 million euros per episode for series, while films have access to a discount of up to 36 million euros.

Spain’s attractive tax advantages do not stop there. While Biscay has been offering tax incentives of up to 70% of expenditure with no maximum limit for national and international shoots since January, the other Basque provinces of Gipuzcoa and Álava have already announced that they plan to apply similar discounts in their territories throughout this year.

“The improvement reflects the interest of the major production companies in filming more and longer in Spain. And its positive impacts are already being seen,” says Carlos Rosado, president of the Spain Film Commission.

The industry is indeed already seeing increased interest from major international producers. The international situation is also playing in its favor.

In the past, major international productions used to shoot in UK studios and then continue on to European locations. But Brexit complicated overseas travel for British production teams, while rising concerns about costs and sustainability have been influencing production companies to reduce their travel plans.

“Our idea is for productions to be made entirely in Spain, taking advantage of infrastructures such as the Ciudad de La Luz Studios in Alicante and the facilities offered by the Community of Madrid,” says Fernando Victoria de Lecea, president of Profilm.

Profilm, an association that encompasses 90% of the companies that implement audiovisual projects with third countries in Spain, is seeking an incentive of 30 million euros per project, which would allow for even larger productions, with budgets of between 100 and 120 million euros.

Besides the attractive tax deductions, in recent years there have been new factors driving the sector and helping foreign companies to be more attracted to Spain. These include high professional qualifications and safety.

“The combination of factors is going to facilitate a considerable increase in international shoots. In this first quarter, for example, the Canary Islands is already going to receive two major projects, one for a series and the other for a film,” explains Natacha Mora, coordinator of Canary Island Film.

“We are also noticing an increase in filming certificate applications from Spanish productions, which have gone from 20 in 2021 to 38 in 2022,” she adds.

The promising outlook for the sector has led more and more companies to enter the production services market. Two companies with an extensive and successful track record in the content production business, Filmax and Bambú Producciones—part-owned by European giant StudioCanal—have just joined Profilm as partners.

“It’s time to share our experience with others. Over our 15 years of travel, we have shown that we are not only creators but also managers. Helping foreign companies that want to come to Spain to make their shows bigger is the reason we created BMB Services,” explains Sara Gonzalo, general manager of this new division of Bambú Producciones.

At the same time, Bambú’s link with the European giant StudioCanal allows BMB to offer foreign companies not only the possibility of filming in Spain but also to do so in other territories.