FOR SHOOTINGS IN SPAIN
In Spain, tax incentives for international films and television series, combined with the advantages of the territory and the thriving audiovisual industry, position the country as one of the most competitive destinations globally for audiovisual production.
Producers overseeing the execution of foreign feature films or audiovisual works in Spain, enabling the creation of physical support before their industrial production, are entitled to tax deductions for expenses incurred within Spanish territory.
The applicable regulations, found in Law 27/2014 on Corporation Tax, particularly in articles 36.2 and 39, along with article 45 of Royal Decree 634/2015, can undergo yearly changes. Therefore, it is advisable to stay informed about any modifications in the year of the intended investment.
These incentives apply to Spanish producers registered in the Registry of Cinematographic Companies of the Institute of Cinematography and Audiovisual Arts of Spain, responsible for executing foreign productions. This implies that the Spanish company spearheading the production must undertake all procedures to qualify for the tax deduction.
- The deduction amounts to 30% for the first million euros and 25% for the remaining expenses in Spain.
- Deduction limit: 20 million euros for each production. For audiovisual series, the deduction is calculated per episode with a limit of 10 million euros per episode.
- The deduction is based on eligible expenses made in Spanish territory, directly related to production, including creative personnel expenses and those incurred from technical industries and other providers.
- The deduction, combined with other aids, cannot exceed 50% of the production cost.
- To be eligible, expenses incurred in Spanish territory must be at least 1 million euros, with exceptions for animation (minimum 200,000 euros) and visual effects services.
- Productions qualifying for the deduction must have a minimum cost of 2 million euros, with the deduction base not exceeding 80% of the total production cost.
- Procedure: The Spanish production company overseeing the international production must submit eligible expense settlements in July of the fiscal year following the filming date and request reimbursement.
- Requirements for deduction application: Obtain a certificate accrediting the cultural character issued by the Institute of Cinematography and Audiovisual Arts, and include a specific reference to the tax incentive in the final credits.
- Additional requirements: The rights holders must authorize the use of the work title and material for promotional activities, including specific filming locations in Spain.
For more details, refer to the Corporate Tax Law, Regulations, and Tax Agency responses to binding queries.
The Canary Islands, as an insular and outermost territory, offer special conditions for accessing tax incentives, subject to Spanish regulations with specific considerations:
- The deduction amounts to 50% of the first million euros and 45% on the excess, capped at one million euros per production.
- Additional requirements include obtaining the Canarian audiovisual production certificate and registration in the Registry of Film Companies of the Canary Islands by the production company.
The Spain Film Commission also has a Frequently Asked Questions section to provide you with additional information in case you need it. CLICK HERE.