Spain Expands Tax Breaks to Boost Audiovisual Production and Attract Global Studios
The Ministry of Culture defended a policy change this Thursday that allows larger financial benefits for multinational companies operating in Spain. The reform raises the maximum tax deduction for audiovisual productions from 10 million to 20 million euros, signaling a bid to position Spain at the forefront of global film and television production.
During a breakfast briefing, the minister outlined the intent behind the update, noting that tax breaks for audiovisual production, introduced in the Congress last week by the socialist group and Unidas Podemos, aim to sharpen Spain’s competitive edge. An additional provision also targets temporary taxes on banks and energy companies as part of broader fiscal measures.
The text clarifies how the corporate tax framework shifts the incentive: the cap for audiovisual productions climbs to 20 million euros, while for series, the ceiling remains at 10 million euros per episode rather than per season. The overall incentive structure stays consistent at a 30 percent rate up to the first million euros invested, with 25 percent applicable to eligible expenses, covering feature films, short films, serials produced in Spain, and foreign productions shot on Spanish soil. The adjusted caps apply equally to both domestic and foreign projects.
During the remarks, the minister underscored the role of multinational firms in Spain’s labor landscape. Even if conversations sometimes center on global tech giants, he asserted that these companies are actively recruiting local talent and acknowledge that training technicians remains a priority given the current high demand in these sectors.
He admitted not having all the specifics of the reform memorized, yet he framed the policy as a positive balance. quote He insisted that living in a country that serves as a base for both global and Spanish studios competing worldwide is advantageous and worth celebrating.
In a broader context, the minister highlighted collaboration with audiovisual multinational companies based in the United States, noting that efforts are being made to demonstrate Spain’s openness to foreign investment and to reassure international partners about a welcoming environment. The dialogue centers on showing that the Spanish market can accommodate growth and creative ambition for producers and crews alike.
The discussion also touched on a notable expansion by Netflix in Madrid. A Spanish executive cited in discussions with the Ministry described the momentum behind the streaming giant’s presence as a symbol of Spain’s appeal to global players, following the inauguration of an expanded production center in the capital.
According to the Ministry of Economy, the tax incentives are designed to be effective magnets for foreign audiovisual productions seeking to shoot in Spain. The policy sits within the framework of the Audiovisual Sector Incentive Plan, a long-running program introduced by the government in March 2021 as part of the Economy Recovery, Transformation and Resilience Plan. Observers expect these measures to help cultivate a robust Spanish creative ecosystem, supporting local crews while inviting international projects to co-produce with Spanish partners and facilities.