Tax incentives

The attractiveness of Spain for foreign film and television productions stems, not just from its internationally recognized great professionals, unbeatable sceneries and excellent natural and weather conditions, but also from a new tax framework that greatly improves the system of incentives for the film industry.

Tax rebates for foreign films

• National Level:

Tax rebate up to 30% for the executive producer (registered in ICAA) of a foreign film or audiovisual production spending a minimum of one million Euros in Spain (200,000 for animation projects).

Qualifying expenses are costs for creative staff, technical industries and other providers. The amount of this tax rebate cannot exceed 10 million per production and the total amount of the incentives applied cannot exceed 50% of the production cost.

The production must obtain the cultural certificate, among other requirements

For more info: investinspain@icex.es

• Regional Level:

Two Spanish regions offer tax rebates: Canary Islands and Navarre.

In the Canary Islands, the deduction is up to 50% for an audiovisual production spending a minimum of one million Euros in the Canary Islands (200,000 for animation projects). The maximum amount of the tax relief is 18 million euros.

For more info: info@proexca.es

In Navarre the tax credit is up to 35% (40% for animation and difficult works) provided that at least 40% of the deduction base corresponds to expenses incurred in Navarra. The maximum deduction is 5 million euros, with no quota limit.

For more info: info@sodena.com

Salto de línea Full text of article 36 of Law 27/2014 , of 27 November, on the Corporation Tax.

Tax rebates for spanish productions

Investments in Spanish film and audio-visual productions entitle the producer to a tax relief of 20 per cent from the first million euros of the base deduction, and 18 per cent on the excess of this amount, with a maximum of €3 million per production.

The base deduction equals the total cost of production plus the cost of copies, advertising and promotion by the producer (with a limit of 40 percent of the production costs).

The law establishes a territorial requirement and 50% of the base deduction must correspond to costs incurred in Spanish territory.

Also it expressly provides that the amount of all tax incentives received may not exceed 50% of the production cost.

The production support is granted if the objectives requirements are fulfilled.

The requirements include, inter alia:

• That the production obtains a certificate of Spanish nationality and a cultural certificate.
• That a new copy of the work is deposited in the Spanish Film Library or equivalent body of an Autonomous Community.

Salto de línea For more info: investinspain@icex.es

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