International Filming Incentives
Producers registered in the Administrative Registry of Film and Audiovisual Companies of the Institute of Cinematography and Audiovisual Arts who are responsible for carrying out a foreign production of feature films or audiovisual works that allow the creation of a physical medium prior to their serial industrial production shall be entitled to the deduction provided for in this section for expenses incurred in Spanish territory.
The basis of the deduction shall consist of the following expenses incurred in Spanish territory directly related to the production:
- Expenses for creative personnel, provided that they have tax residence in Spain or in a Member State of the European Economic Area.
- Expenses arising from the use of technical industries and other suppliers.
The amount of the deduction shall be:
a) 30 percent of the first million of the deduction base, and 25 percent of the amount exceeding that figure.
The deduction shall apply provided that the expenses incurred in Spanish territory amount to at least €1 million. However, in the case of animation productions, such expenses must amount to at least €200,000.
The amount of this deduction may not exceed €20 million for each production carried out.
In the case of audiovisual series, the deduction shall be determined per episode, and the limit referred to in the preceding paragraph shall be €10 million for each episode produced.
The amount of this deduction, together with any other aid received by the taxpayer company, may not exceed 50 percent of the production cost.
b) 30 percent of the deduction base when the producer is responsible for providing visual effects services and the expenses incurred in Spanish territory are less than €1 million.
The amount of this deduction may not exceed the limit established in Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.
The deduction provided for in this section is excluded from the limit referred to in the last paragraph of section 1 of Article 39 of this Law. For the purposes of calculating that limit, this deduction shall not be taken into account.
For the application of the deduction, compliance with the following requirements shall be necessary:
- That the production obtains the corresponding certificate accrediting its cultural character in relation to its content or its connection with Spanish or European cultural reality, issued by the Institute of Cinematography and Audiovisual Arts or by the competent body of the relevant Autonomous Community. This requirement shall not apply to the deduction set out in point b) of this section.
- That the final credits of the production include a specific reference to having benefited from the tax incentive; the collaboration, where applicable, of the Government of Spain, the Autonomous Communities, the Film Commissions or Film Offices directly involved in the filming or other production processes carried out in Spain; as well as, where appropriate, the specific filming locations in Spain and, in the case of audiovisual animation works, the location of the studio entrusted with the production service.
- That the rights holders authorize the use of the title of the work and of the graphic and audiovisual press material expressly including specific filming locations or any other production process carried out in Spain, for the performance of activities and the preparation of promotional materials in Spain and abroad for cultural or tourism purposes, to be carried out by state, regional, or local entities with competence in culture, tourism, and economy, as well as by the Film Commissions or Film Offices involved in the filming or production.
Other requirements and obligations may be established by regulation in order to qualify for this deduction.
FAQs
What are the eligible expenses related to creative personnel?
For the purposes of calculating the basis for applying the tax incentive, creative personnel shall be understood to mean:
- The authors: the director, the scriptwriter, the director of photography, and the composer of the music.
- The actors and other performers involved in the work.
- Creative technical personnel: the chief editor, the art director, the head of sound, the costume designer, and the head of make-up.
All must have tax residence in Spain or in the European Economic Area, and these expenses shall be limited to €100,000 per person.
What are the eligible expenses related to technical production and other suppliers?
Eligible technical production and supplier expenses incurred in Spanish territory are detailed below.
- Executive producer, producer, and production assistant.
- Scenography team members not classified as creative personnel, including: set designer, decorators, florists, set decoration assistants, set dressers, carpenters, etc. As well as the materials required for scenography (construction materials, carpentry, paint, fabrics, etc.).
- Expenses of the wardrobe and make-up team: tailors, hairdressers, make-up artists, etc. Expenses for wardrobe, make-up, wigs, and similar items are also eligible.
- Special effects team, including special effects technicians, model makers, etc., as well as pyrotechnic materials, smoke materials, combustion accelerants, detonators, and fire extinguishers.
- Camera crew (camera operators, assistants, etc.), lighting, and sound.
- Technical telecommunications team, image maintenance and control, and expenses related to mobile telephony, internet, and satellite lines.
- Secondary artistic team: extras, stunt doubles, acting doubles, and lighting doubles.
- omplementary personnel: choreographers, weapons masters, military advisors, dialogue coaches, animal handlers, drivers, cleaning staff, security staff, medical staff and ambulance, occupational risk supervisor on set, laborers for unloading trucks, and transport of technical equipment or props.
- Meals and accommodation for the technical crew during pre-production and post-production.
- Meals and accommodation for the technical crew working in a location different from the shooting site: staff in charge of props advance teams, locations, production, and drivers in transit.
- Transport and/or transfer of people within national territory: locations and casting.
- Rental and/or purchase of furniture and machinery directly related to the production: tents, umbrellas, portable tables, fences, generators, etc.
- Rental of premises and locations for filming and production
- Filming fees from City Councils.
- Rental expenses for animals for filming, weapons, and ambulances.
- Civil liability insurance with coverage directly related to film production.
What expenses are not eligible?
Several binding rulings have determined which expenses are not eligible for the calculation of the tax incentive. This is a non-exhaustive list, and in case of doubt, it is advisable to consult a specialized tax advisor and/or make an inquiry with the local office of the Tax Agency.
- Air, sea, and/or road transport expenses for filming equipment, props, and/or machinery brought from other countries to Spain, as these are not expenses incurred within Spanish territory.
- Labor and legal advisory services.
- Expenses incurred in relation to the administrative team, including the rental of premises (administration office), staff expenses (chief accountant, accountant, paymaster, and accounting assistant), rental of office machinery and furniture (photocopiers, printers, office furniture, etc.), and purchase of office supplies, stationery, and courier services.
- Expenses arising from the tax depreciation of assets directly linked to executive production, insofar as they are not expenses incurred in Spanish territory but rather investments made abroad that are subsequently allocated to the production.
What is the fiscal period for applying the incentive?
The Spanish service production company, registered with the ICAA, must submit the settlement of all eligible expenses in July of the fiscal year following the date of filming.
Who can apply for the tax incentive?
A company with tax residence in Spain, acting as the local producer of a foreign feature film, television series, animation, or documentary, which is subject to Corporate Income Tax and is registered in the Audiovisual Producers Registry of the ICAA.
To access the incentives in Navarre or the Canary Islands, the company must have tax residence in one of those two territories, respectively
Are the incentives compatible with grants?
In principle, tax incentives are compatible with different international, national, and regional grants, provided that the combined amount does not exceed 50 percent of the production cost. There are exceptions to this limit, and it is advisable to consult a specialized tax advisor in each case.