Tax incentives
and aid
Incentives and grants
The Malaga Film Commission works to encourage audiovisual production in Malaga by actively promoting the possibilities of its spaces, the strength of its industry and the experience of its professionals.
By supporting and stimulating the audiovisual sector, the rest of the city's creative industries and the wide variety of services that derive from them, the Malaga Film Commission seeks to boost the economic development and international image of Malaga, promoting the attractiveness of the city for its inhabitants, workers and visitors.
Photo above © Soho TV Theatre | Martinacalifornia
Tax incentives for international filming
Spain has tax incentives for international films and television series which, in addition to the benefits of the territory and the audiovisual industry, make the country one of the most competitive destinations in the region.
The law that regulates these incentives can be modified every year, so it is advisable to find out which aspects have been modified in the year in which the production is carried out and its qualification. It is currently in force in Spain: Article 36.2 Law 27/2014, of 27 November, on Corporate Income Tax. Deduction for investments in film productions, audiovisual series and live performances of performing arts and music.
These incentives, in all cases, are applicable to Spanish producers registered in the Registry of Film Companies of the Ministry of Education, Culture and Sport who are in charge of the execution of a foreign production. This means that it is the "service" the one that undertakes the executive production and the one that has to carry out all tax procedures to qualify for the tax deduction.
The tax incentives currently in force are.
30% / 25% Tax Rebate
- General incentive of 30% on the first EUR million and 25% for the rest of the expenditure carried out in Spain.
- Type of foreign productions: Feature films, TV series, animated films and documentaries.
- Maximum refund limit: 10 million.
- Beneficiaries: companies Spanish registered in the register of audiovisual production companies of the Instituto de Cinematografía y las Artes Audiovisuales.
- Basis of deduction: eligible expenditure incurred in Spain.
- Eligible expenditure: creative people domiciled in the country or in another state of the European Union, up to a maximum of 100.000€ limit per person / technical services and complementary.
- Minimum expenditure incurred in Spain: 1 million, for pre-production and post-production costs for animation and visual effects carried out in Spain: 200,000 euros.
- Procedure: the reimbursement must be requested by the Spanish company, in the July of the year following the end of filming.
- There are details in the law that are not explained here, so we recommend going to the literal wording of Article 36.2 and to the responses made by the Tax Agency to the binding consultations already made (some aspects are included in the section Frequently asked questions).
Tax incentives for national filming and co-productions
Common Regime
The law currently in force: Article 36.1. Corporate Income Tax Act 27/2014 of 27 November 2014. Deduction for investments in film productions, audiovisual series and live performances of performing arts and music. The law regulating these incentives can be modified every year, so it is advisable to find out about the aspects that have been modified in the year in which the investment is made. Summary of the article:
-Investments in Spanish productions of feature and short films and audiovisual series of fiction, animation or documentary films, which allow the production of a physical medium prior to their industrial serialised production, will entitle the producer to a deduction:
a) From 30% in respect of the first million of the deduction base.
b) From 25% 10 million, with a maximum of EUR 10 million.
-The basis for the deduction is equal to the total cost of production plus the cost of copies, advertising and promotion financed by the producer (with a limit of 40% of production costs).
- The law establishes a territorial requirement and the 50% of the deduction base must correspond to costs incurred in Spanish territory.
-It also expressly provides that the amount of all tax incentives received may not exceed 50% of the cost of production.
- In the case of a co-production, the amounts shall be determined, for each co-producer, according to their respective percentage of participation in the co-production.
- Once the film's certificate of nationality and other requirements have been obtained, tax deductions can be applied for in July of the year following the end of production.
There are details in the law that are not explained here, so we recommend going to the literal wording of Article 36.1 and to the responses made by the Tax Agency to the binding consultations already made (some aspects are included in section Frequently asked questions)
International co-productions
The international co-productions governed by international agreements and which are considered national productions are considered national productions and can therefore benefit from tax deductions for investment in film and audiovisual productions, as well as being eligible for financial aid from the ICAA for creation, production and promotion.
You can find more information on the Spain Film Commission website, Shooting in Spain.
Binding advice and consultations
From the Andalucía Film Commission we recommend that the production should have the consultancy of a law firm specially dedicated to taxation, and if it is specialised in audiovisual productions, all the better.
The binding consultations are writings by means of which any taxpayer can address the Administration to ask questions about the interpretation and application of the rules. Therefore, any production can ask the Tax Agency, by means of specific questions, about the application of the tax incentive. The Tax Agency ensures that the answer given is the only possible interpretation of the tax rule. These binding consultations provide legal certainty for taxpayers because it is not possible to contradict their provisions.
MFC calls for cooperation after the
- On-screen credit to Málaga Film Commission.
- Donation, upon completion of production, of:
- A video copy of the work done.
- A list of technical, creative and production staff.
- Photographs and publicity material from the production.
- Information on the expenditure incurred in our province for your project.