Increased Incentives for International Film Making Solidifies Spain as One of the Most Attractive Destinations in Europe
Game of Thrones. Extremadura Film Commision
"The measures will serve to attract projects of a greater magnitude to our country" - Fernando Victoria de Lecea, ProFilm
Approved by the Congress of Deputies last December 27, the new tax incentives for audiovisual filming have placed Spain among the most attractive destinations in Europe.
Under the new regulations, international TV series shot in Spain will qualify for a deduction limit of €10 million per episode, while for international films the tax reduction limit increases from €10 to €20 million per project. At the same time, the spending limit of €100,000 per person on creative personnel has been eliminated.
In the case of the Canary Islands, due to their status as an island and outermost territory, the incentive increases to €18 million per episode for TV series; films have access to a discount of up to €36 million per title.
The aim of this initiative is both to attract major international film shoots to Spain and to encourage them to stay longer in the country.
“The measures will undoubtedly serve to attract projects of a greater magnitude to our country,” says ProFilm's president, producer Fernando Victoria de Lecea.
The application of the regulatory change, included in a reform of Corporate Income Tax Law, is awaiting the European Commission's pronouncement on its compatibility with EU law.
According to the president of ProFilm, now the objective of this association, which includes 90% of the companies that develop audiovisual projects with other countries in Spain, "is to continue collaborating with the Government so that, when the approved changes are implemented, they are carried out in the simplest and most efficient way possible both for the Tax Authority and for sector professionals and to help ensure legal certainty”.
With a limit of 30% for the first million of the deduction base and 25% on the excess over this amount – which in the Canary Islands is 50-45% – the incentives are already among the most attractive in Europe, compared, for example, to France, which offers 30% with a ceiling of €30 million, or the United Kingdom, with 25% of the admissible expenditure, provided that it does not exceed 80% of the production budget.
In addition, since 2023, the Basque province of Bizkaia offers tax credits of up to 70% of the expenditure with no maximum limit for national and international filming that takes place in its territory.
The new regulations mark the second major increase in production spending reimbursement limits since 2020, when the Spanish government raised the €3 million quota ceiling in the midst of the COVID-19 pandemic.
Due in part to that initiative and also to the relaxation of restrictions, international productions spent €263 million in Spain in 2021, double the 2016-19 annual average, according to a study by ProFilm.
Related
Related news
13 October 2023
13 October 2023
Spanish fiction continues to be a benchmark in the main international markets and festivals, while the industry maintains a dynamic pace of production in terms of new projects.
13 October 2023
26 September 2023
26 September 2023
A pioneering producer in fiction series co-production, Portocabo has been determined to seek out international partnerships to promote more ambitious projects. Alfonso Blanco, the company's founder, explains the advantages of his approach.
26 September 2023
17 September 2023
17 September 2023
Spanish Screenings XXL, the ambitious international market platform, is heading into an intense fall with two of its events—Spanish Screenings Financing & Tech and Spanish Screenings on Tour—taking place close to each other in the calendar, as part of the San Sebastian Film Festival and the MIA market in Rome, respectively, in its aim to globally promote our industry.
17 September 2023
01 September 2023
01 September 2023
The international prominence of Spanish animation cinema is reaching unprecedented heights, not only due to recent spectacular international sales results or global box office performance, but also because of growing interest among programmers at major festivals.
01 September 2023
10 July 2023
10 July 2023
In the current effervescence of the filming industry in Spain, it is worth mentioning the influence of cinema advertising, which has contributed significantly to its development.
10 July 2023
20 June 2023
20 June 2023
The Spanish animation and VFX sector is thriving. On its way to becoming a consolidated global leader, Spain is increasingly attracting top international companies that come to invest in local talent and resources.
20 June 2023
13 June 2023
13 June 2023
As platforms have reached new heights and record-breaking tax incentives for both local and international shoots have grown, there has been a huge demand for production facilities in Spain.
13 June 2023
05 June 2023
05 June 2023
After succeeding on the international market with fiction, Spanish production continues to expand its presence abroad through non-fiction content. Some entertainment formats such as El Conquistador have already been broadcast on free-to-air TV channels in Latin America. Formats such as the docu-reality El Puente, born on pay TV, are also traveling.
05 June 2023