Incentives International Shootings
Tax incentives for international productions Producers registered in the Registry of Cinematographic Companies of the Institute of Cinematography and Audiovisual Arts of Spain in charge of the execution in Spain of a foreign production of feature films or audiovisual works that allow the preparation of a physical support prior to their serial industrial production are entitled to tax deductions for expenses incurred in Spanish territory.
The base of the deduction will be set up on the following expenses incurred in Spanish territory related directly to production:
- The expenses of creative staff, provided they have tax residence in Spain or in a member state of the European Economic Area.
- The expenses derived from the use of technical industries and other suppliers
The amount of the deduction will be:
A) 30% with respect to the first million euros of the base of the deduction and 25% for the excess of this amount.
The deduction will be applied as long as the expenses incurred in Spanish territory are at least 1 million euros. For animation the amount of expenses will be, at least, 200.000 euros
The amount of this deduction cannot exceed 20 million euros, for each production.
In the case of audiovisual series, the deduction will be determined per episode and the limit referred to in the previous paragraph will be 10 million euros for each episode produced.
The amount of this deduction, together with the rest of the aid received, may not exceed 50 percent of the cost of production.
B) Visual effects services: when the producer is in charge of the execution of visual effects services and the expenses incurred in Spanish territory are less than 1 million euros, he may obtain a deduction of 30%. The amount of this deduction may not exceed the amount established by Commission Regulation (EU) 1407/2013, of December 18, 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 the limit this deduction will not be computed.
For the application of the deduction, it will be necessary to meet the following requirements:
- That the production obtain the corresponding certificate that certifies the cultural character in relation to its content or its link with the Spanish or European cultural reality, issued by the Institute of Cinematography and Audiovisual Arts, or by the corresponding body of the Autonomous Community with competence in the matter. This requirement will not be required for the application of the deduction to visual effects services.
- That a specific reference to having benefited from the tax incentive be incorporated in the final credits of the production; the collaboration, where appropriate, of the Government of Spain, the Autonomous Communities, the Film Commissions or the Film Offices that have been directly involved in the filming or other production processes developed in Spain, as well as, where appropriate, the specific filming locations in Spain and, in the case of animation audiovisual works, the location of the studio that has been commissioned with the production service.
- That the holders of the rights authorize the use of the title of the work and of graphic and audiovisual material from the press that expressly includes specific locations of the filming or any other production process carried out in Spain, to carry out activities and elaboration of promotional materials in Spain and abroad for cultural or tourist purposes, which may be carried out by state, regional or local entities with powers in matters of culture, tourism and the economy, as well as by the Film Commissions or Film Offices that have intervened in the filming or production.