Elzaburu, covid-19 statement

 

New measures regarding tax incentives for foreign film production in Spain

In order to mitigate the negative effects of COVID-19, Spanish Government has issued specific measures to support cultural industry. These measures include advantages in relation to tax benefits applicable for foreign productions with eligible expenditure performed in Spain.

1. General rules

· The applicable rebate percentage for foreign production has now been increased to 30% on the first million of eligible expenditure and 25% on any expenditure over the first million.

· Eligible expenses are:

– Expenditure on creative staff (maximum 100.000 € per person).
– Expenditure on technical industries and other suppliers.

· The minimum expenditure is 1 million Euros (except animation and VFX 200.000 €).

· The maximum deduction has been increased up to 10 million Euros.

2. Special rules for Canary Islands

· The deduction percentage is 50% on the first million (45% on any expenditure over the first million) of eligible expenditure.

· The expenses eligible are:

– Expenditure on creative staff (maximum 100.000 € per person).
– Expenditure on technical industries and other suppliers.

· The minimum expenditure in Canaries is 1 million Euros. For animation and VFX expenditure required is 200.000 €.

· The new maximum deduction is 18 million Euros.

In ELZABURU, our Media & Entertainment Team shall be glad to provide further information and check if your project could be eligible for these tax benefits.

 

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