With its varied landscapes, rich architecture and amazing scenery, Europe has always been a popular destination for film and video productions. Adding to its already vast appeal are numerous filming cash and tax incentives that can add up to big savings and more shooting even on a small budget! We have put together this quick, easy-to-read list of the best filming incentives in Europe. You can use it when trying to decide where to shoot your next project.
Film Production Rebate
A rebate (or grant) is funds paid to the production company based on the amount of qualifying expenditures, or jobs created in the state or country by the project. The production company does not need to file a tax return for rebates.
Film Refundable Tax Credits
A refundable tax credit is similar in function to a rebate, however, the production company must file a tax return to claim it, and receive a credit for taxes owed. Tax credits can sometimes be used as collateral to obtain a loan so that the production company receives an advance, which is usually discounted.
Film Transferable Tax Credits
A transferable tax credit may be sold or assigned to a local taxpayer. Some states offer transferable tax credits, which allow production companies to sell or get a refund for tax credits that they are not able to use. Many times brokers are used to perform these transactions.
Film Non-Refundable, Non-Transferable Tax Credits
This type of tax credit can be used to offset a production company’s current tax liability, and can be carried forward for a set time, but not transferred to third parties.
Filming Incentives in Europe by Country
Each country has specific requirements that need to be met to qualify for the incentive programs and many also have an annual cap on the amount of funds to be awarded under their incentive program. You can find more in-depth information about each country’s incentive program by clicking on the links provided.
25% cash rebate of qualifying production expenditure
20% cash rebate of local spend
20% cash rebate of qualifying local spend to companies or individuals registered to pay Czech Republic (CR) income tax & 10% on payments to individuals who are not registered to pay income tax but do pay withholding tax in the CR
20% refundable tax rebate of qualifying local spend
20% cash rebate of qualifying local spend (up to 80% of the total production costs)
20% tax credit of qualifying local spend and 5% bonus if portion of the film is shot elsewhere in Europe. Incentive has been raised to 25% of qualifying local spend, approved by the European Commission June 2014, effective date to be announced.
20% cash rebate of qualifying local spend as well as all European Economic Area spend if > 80% of the film or television costs are incurred locally
28% cash rebate of qualifying local spend
20% tax incentive of local qualifying spend
20%–27% cash rebate on qualifying expenditures incurred in Malta
30% cash rebate
20%–25% cash rebate of UK qualifying film production expenditure
The information stated herein is for reference only and based on a source using data as of December 2014. Make sure you consult a qualified tax adviser and professional who is familiar with tax incentive programs to determine the best fit for your project.