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
The executive producer (registed in the ICAA’s Film and Audiovisual companies Register) of a foreign film or audiovisual is entitled to a tax relief of 15% of the costs incurred in Spanish territory in this production provided said costs equal at least 1 million euros.
The expenses that qualify for this tax relief must be creative personnel costs and expenses arising from the use of technical industries and other suppliers.Salto de línea The amount of this tax relief may not exceed 2.5 million per production and the total amount of any incentives may not exceed 50% of the production cost
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There are two regions within Spain who has special deduction: Canary Island and Navarre.
In the case of Canary Island, the deduction can be up to 40% if a minimum expenditure of 1 million euros is made in Spanish territory and the amount deducted may not be greater than 4,5 million euros for cost incurred in Canary Island. The deduction applied with no limit.
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For Navarre the deduction is 35% if a minimum of at least one week´s filming in Navarre and the application of deduction is without quota limit
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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:
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