Experts in Tax Incentives for International Productions in Spain
Spain’s tax legislation, including Law 27/2014 and specific articles within Real Decreto 634/2015, provides significant tax deductions for foreign productions filming in the country. It’s important to note that these regulations are subject to annual reviews, suggesting a proactive approach in staying informed about any updates.
Key points for international producers considering Spain:
- The initial million euros of expenditure qualifies for a 30% tax deduction, while subsequent expenses are eligible for a 25% deduction.
- There’s a maximum deduction limit of 30 million euros per production, which adjusts to 18 million euros per episode for television series.
Eligible Expenses
- Salaries for creative personnel residing in Spain or within the European Economic Area are deductible.
- Costs associated with technical industries and service providers also qualify.
However, the combined benefits cannot exceed 50% of the production cost, and a minimum expenditure of 1 million euros in Spain is required for eligibility, with specific provisions for animation and visual effects.
Special Conditions in the Canary Islands
The Canary Islands offer enhanced incentives due to their unique geographical status, allowing for a 50% deduction on the first million euros and 45% on subsequent amounts, with a cap of one million euros per production. Additional requirements include obtaining a Canarian audiovisual production certificate and registration with the local film company registry.
Compliance and Application
To take advantage of these deductions, productions must meet several conditions:
- Obtain a certificate validating the cultural significance of the content or its connection to Spanish/European culture.
- Acknowledge the tax incentive in the production’s final credits, including any governmental or local support received.
- Permit the use of the work’s title and select visuals for promotional purposes by Spanish entities, aimed at cultural or tourist promotion.
Spain’s tax incentives not only highlight its commitment to supporting the audiovisual industry but also enhance its appeal as a destination for international productions. While this overview provides a snapshot, we are happy to provide the latest developments and regulations.
