City of Light: yes to tax incentives, no to subsidies

When the City of Light hosts First shooting in 2005There were no tax incentives for both national and international production. The then Minister of Finance was not until 2014. Christopher Montoro initiated a financial reform. 15% refund investment in a shoot 2.5 million limitwhen it comes to foreign films and 20% on Spanish cassettes3 million limit.

Starting from scratch and reaching these amounts was a big step, but not enough. Bearing in mind that discounts are offered in the same year France, Germany and Italy they reached e for shootingl 40%; Great Britain up to 25% and Ireland up to 28%Spanish numbers were completely out of the market and not competitive at all.

Although the simplest thing would be to equate the law with the rest of Europe – something Montoro was not keen on despite industry pressure – to be able to play in the same league, Valencian general He chose to take his own steps. yes with Europe’s best teams productions did not come initially because there were no financial incentives, or later because there were very few they gave subsidies and fixed.

This was the beginning of the end of some of the work that was funded and awarded a total of 470 million public investments. More than 22 million Euros for 66 shots hosting facilities between 2005-2012

Although outside of national regulations, Generalitat approves an annual item It is intended for the “purchase” of filming. In 2011 this amount €2.4 millionThe same amount as in 2012.

That year, the European Commission declared that the assistance Ciudad de la Luz received from the Generalitat for the construction of the complex, and the subsidies for the film after shooting, were incompatible and illegal. Notice from British studios Pinewood They considered unfair competition.

What is clear is that those pens, which Generalitat gladly gave to both domestic and foreign productions, were made. without any regulation regulating them and this is what led to the closure of the studios in 2012, which would reopen on 1 July, after the European Commission lifted the penalty for the Alicante complex and Generalitat reclaimed this space to make films.

Fiscal Policy Turnaround

Since then, not only the situation of the complex has changed, but also its fiscal policy. new government in 2020, 30% tax incentive 25% for the withdrawals of the first million euros and the remainder of the expenditure in Spain, limited to 10 million euros. Some numbers exceeded Canary Islands, Basque Country and Navarra something that the Community of Valencia does not have, which has its own tax regimes for international withdrawals and should be subject to national regulations.

But this tax cut positioned Spain, and thus Ciudad de la Luz, on the international market, and today it has matched and even increased the tax credits of other European countries. Thus, according to the data recorded by profile, the international association of audio-visual production companies, the figures that Germany and the UK have considered in 2022 are 25%; France, Austria, Hungary, Croatia, Italy or Portugal are also at 30%.

This percentage change represents the total investment for film in Spain.130 million euros between 2016 and 2019increased in 2021 more than 263 million, according to data provided by Profilm. And a production in Spain has expired a few weeks to nine months or a year.

The Alicante complex adds to the advantage of having increased tax incentives. studies that are hard to find in other countries and in other parts of Spain. which is added a technical sector specialized in climate and excellent quality.

Prospects for the next 5 years according to the President Generalitat, Ximo Puig, they predict Alicante sets will host this week in Ciudad de la Luz about 220 productionwith economic impactand 850 million, Although it will be necessary to invest earlier 2.4 million modernizing and commissioning facilities, especially water ditchUnique in Europe.

To this on June 27 Film Commission Valencia CommunityTo search for shots, disappearing after closing the sets.

In fact, there are already requests and questions regarding the opening dates of the studios, because at a time when audio-visual production by the platforms has increased so much, there is a shortage of sets in Spain. And Ciudad de la Luz may be the solution.

Tax incentives in European countries for international film shooting *

GERMANY: 25% with a maximum return of 25 million euros.

AUSTRIA: 30% with a maximum return of 7.5 million euros.

BELGIUM: 42% Tax Shelter with a refund cap of 15 million Euros.

CYPRUS: 25-35% with an upper income limit of 25 million Euros.

CROATIA: 30% with an upper limit of 8 million euros.

SPAIN: 30% with a return limit of 10 million euros.

FINLAND: 25% with a maximum return of 12.35 million euros.

FRANCE: 30% this can go up to 40% if the production has significant visual effects (VFX) and has a maximum return of 30 million euros.

GREECE: 40% with a maximum return of 75 million euros per year.

HOLLAND: 35% with a maximum annual return of 19.25 million euros.

HUNGARY:30% with a maximum return of 90 million euros.

IRELAND: 37% tax credit up to 70 million euros.

ICELAND: 25%, no refund limit.

ITALY: 30% with a maximum return of 25 million euros.

LITHUANIA: 30% with a maximum return of 50 million euros.

MALT: 30-35%, no refund limit.

NORWAY: 25%, with a maximum return of 6.4 million euros.

POLAND: 30% 45 million euros per year.

PORTUGAL: 30% with an annual cap of 12 million euros.

England: 25% tax credit with no refund limit.

CZECH REPUBLIC: 20% with a limit of 30 million Euros per year.

ROMANIA: 35% with a return cap of 10 million Euros per project.

SERBIA: 30% with a maximum return of 7 million euros per year.

*Font: Comparison of tax incentives in Europe (PROFILM)

Source: Informacion

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Popular

More from author