Filming internationally doesn’t just add an exotic factor to your set. For many European countries, the tax incentives increase international filming in their territory creating jobs and stimulating the local economy.
And it has worked! European film agencies continue to entice international productions tax credits and rebates, which has led to a 50% growth in film production this past decade.
If your next production is looking to save money by availing of some of the most generous tax incentives and shelters in the world, shooting in Europe might just be the ticket.
Ireland
Ireland’s 32% – 37%* Tax Credit for Film, Television and Animation
Tax credit on eligible production, post-production and/or VFX expenses for local and international cast and crew as well as goods and services.
*5% Regional Uplift
Projects substantially produced in the regions (outside Dublin/Wicklow and Cork City and County) benefit from or up to 5% uplift subject to specific training-related requirements. The 5% uplift applies in 2020 and 2021, 3% in 2022 and 2% in 2023.
Annual cap: no annual cap or limit on the funding of the programme. The tax credit has a ‘per project’ cap of up to 32% of the lower of:
- All eligible expenditure
- 80% of the total cost of production
- €70 million
Minimum spend: €125,000 of ‘eligible expenditure, or €250,000 for the total cost of production.
Belgium
Tax Shelter funds
Tax Shelter can provide additional funding up to 25-30% of the total qualifying expenses in the EEA. It allows the finance of up to 40-45% of the Belgian-eligible expenses.
The investor must make its full payment within three months of signing the framework agreement.
Flanders Region
Financial incentives: Belgian producers can apply to receive up to €400,000 of refundable advances through economic support to cover their audiovisual expenses in the Flanders Region.
Requirements:
- Foreign producers interested in applying for the fund can co-produce with a Belgian producer that satisfies all the selection criteria.
- Every euro entrusted to a producer must yield at least €1 of audiovisual expenditure in the region.
Financing of up to 15% of the eligible costs in Flanders is possible to a maximum of €400,000.
Cultural Funds
The Flanders Audiovisual Fund (VAF) supports audiovisual productions in Flanders (Flemish Community) and international co-productions with Flanders-based producers. VAF comprises of:
- VAF/Film Fund: annual grant from the Flemish government. In 2018, €10.6 million of this grant went into production support.
- VAF/Media Fund: For foreign series, a minimum of 20% of the budget must be financed through a Flemish producer, and 50% of the total budget must already be financed.
- VAF/Game Fund: total budget available in 2018 was €1.3 million.
Estonia
Film Estonia production incentive
International production service or co-production can apply to receive a cash rebate of up to 30% on eligible production costs. Film production requires Estonian-based filmmakers, actors and other production crew, Estonian story and/or Estonian-set storyline to avail.
The scheme is open for:
- feature films with a budget of at least €1 million;
- feature and short animation with a budget of at least €250,000;
- animation series with an overall budget of at least €500,000;
- high-end TV-drama with a budget of at least €200,000 per single episode;
- feature documentary with a budget of at least €200,000;
- post-production of all the above-mentioned works.
The report on costs is audited within 30 days of the submission by the applicant of the documents.
The payment is made within ten days of the date of approval of the report.
Tartu Film Fund: Rebate is capped at 20% of eligible expenditure incurred in the Tartu area by international film productions or the provision of production services to them.
Viru Film Fund: offers a cash rebate by refunding up to 40% of local production costs. Viru Film Fund’s annual budget is €200,000 for the co-funding of feature films, documentaries, TV series, and music videos filmed in Ida-Viru County.
Hungary
Hungarian National Film Fund
Tax rebate is 30% of the eligible Hungarian spend. Up to 25% of the eligible spend can be non-Hungarian spend which also qualifies for the 30% tax rebate.
Minimum spend: No minimum spend, no cap per project and no annual fiscal budget cap.
Requirements:
- Must pass a cultural test, but the producer is free to spend 20% of production costs outside of Hungary.
- Local and Foreign Spend can be in any currency (USD, EUR, GBP, HUF) and can also be spent outside of Hungary.
- Foreign companies and/or producers should conclude co-production or service agreements with a Hungarian registered company
- Production has to be registered at the National Film Office (NFO)
- The start of filming has to be registered at the National Film Office (NFO)
France
TRIP (Tax Rebate for International Production)
The TRIP supports non-French projects that are completely or partly made in France.
Financial incentive: amount allocated comprises 30% or 40% of the film eligible expenditures incurred in France.
Requirements:
- Production must pass a cultural test that assesses European cultural elements in the story as well as French and European locations, characters, sources, landmarks, creators, crew and French technical hubs.
- For live-action, there’s a necessary minimum of 5 days of shoot in France.
- For animated productions and VFX-intensive projects, there is a dedicated cultural test, acknowledging the specificities of the genre.
Minimum spend: either $1.5 million or 50% of the total production budget spent in France.
Cap: €30 million per project.
10% VFX-related Tax Rebate bonus: may be eligible for a 40% Tax Rebate on all eligible expenses. To qualify, projects must be:
- works of fiction
- include more than €2M in VFX-related eligible French expenses and
- pass a test.
If you’ve got any more questions, you can get in touch with us at Irish Film Services. We’re specialists in accessing the Irish Film Tax Incentive (Section 481) on behalf of our international clients.
