Tax incentives

Significant Tax Incentive Improvements

In May 2020 a tax incentive increase for filming was approved.
The refund percentage increased from 20% to 30% for the first million euros of deductible expenses, 25% for the rest of the expenses in Spain, and is capped at 10 million euros.
For the international film industry, Spain a very competitive and profitable destination.

A constant improvement of tax incentives in Spain.

In 2014 and 2015, the Spanish government responded to industry demands when it introduced a 15% federal tax credit for international productions with a minimum €1.000.000 spend on mainland Spain, these incentives rise to a pre-existing 35% for productions based in the Canary Islands, again with a minimum €1.000.000 spend. In 2016, the percentage was raised to 20% on mainland and 40% on the Canary Islands. The minimum spend remains one million Euros. Now In May 2020 the incentive is capped at € 10.000.000 on the mainland.

These caps make Spain and the Canary Islands a very competitive option for feature films and TV series. 

Shooting in the Canary Islands has additional advantages as it enjoys its own fiscal system as well as versatile, spectacular scenery ideal for large productions.

 

The new incentives are accessed via the Spanish producer or service production company. Fresco Film was granted an audience with the Treasury Department in order to clarify, specify and relay to its clients a concise understanding of what costs were included or excluded of these fiscal incentives. Ever since 2015, many more concepts have been included in the qualifyable spend, which makes Spain’s tax incentive programme very interesting.

 

Deductible expenses in film and tv productions:

• Costs directly associated with film direction: producer, assistant, counselor, script supervisors, casting directors and personnel.

• Costs directly associated with Art Department and Props: theatrical designer, decorators, florists, art department assistants, prop buyers, props assistants, etc.; as well as the necessary materials.

• Costs directly associated with wardrobe and make-up. Tailors, barbers, make-up artists, etc. can all form part of deductible expenses.

• Costs directly associated with the team of special effects (fireworks material, smoke machines, fuel, detonators, fire extinguishers, etc.).

• Costs directly associated with the hire/purchase of cameras, sound and lighting equipment.

• Costs directly associated with technical support (telecommunications engineer, electronic and visual technicians), and other related expenses (mobile, internet, satellite lines, etc.).

• Costs directly associated with the secondary artistic team.

• Costs directly associated with complementary personnel: choreographers, armory instructors, military consultants, dialogue tutors and cleaning, amongst others.

• Costs directly associated with the maintenance and accommodation of the team, during the shoot as well as others that are employed at different locations.

• Costs directly associated with the transportation of material or personnel within the national territory, between different locations, this also includes costs incurred for casting selection.

• Costs associated with the rental of furniture or machinery which are directly related to the production: tents, sunshades, portable barriers, fences, chairs, tables, make-up mirrors, generators, cranes, etc.

• Costs directly associated with the rental of locations for the film shoot (castles, bullrings, factories, etc.), as well as shooting permits and taxes issued by the relevant town halls. Also the rentals related to the production (places or trailers).

• Costs directly associated with animals, weapons, ambulances rented for the shoot.

• Costs associated with legal and public liability insurances with coverage related directly to the cinematographic production.

And many more concepts...

Please enquire more information as well as our chart of included concepts to find out more about the incentive programme.

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