Ireland’s New 40% VFX Tax Credit
We were delighted to hear that the government has introduced an enhanced 40% tax credit for qualifying visual effects work, strengthening its position as an international destination for film, television, animation and post-production.
The new VFX Uplift operates through Ireland’s existing Section 481 film tax credit and has been in effect from today, the 16th July 2026.
How does the VFX Uplift work?
Productions that incur at least €1 million in eligible Irish VFX expenditure can qualify for a tax credit of up to 40% on the first €10 million of that expenditure.
Eligible VFX expenditure above €10 million can continue to qualify for the standard 32% Section 481 credit.
This means a production spending €10 million on qualifying VFX work in Ireland could receive a tax credit of up to €4 million.
There are so many great VFX companies in Ireland that is going to really boost the industry.
What work is eligible?
Qualifying VFX work can include:
- Concept art, storyboarding and pre-visualisation
- Tracking, rotoscoping and compositing
- Modelling, sculpting, texturing and rigging
- CG and character animation
- Effects and simulations
- Lighting and rendering
- VFX editing, supervision and coordination
- LiDAR scanning and photogrammetry
- Virtual production
- VFX colour correction, export and delivery
The expenditure must relate to eligible VFX personnel, goods or services provided in Ireland.
Can VFX-only productions qualify?
Yes. Principal photography does not have to take place in Ireland. A production may qualify where all or most of the Irish production activity consists of relevant VFX or post-production work, provided it meets the wider Section 481 requirements.
Eligible projects can include feature films, television drama, animation and creative documentaries.
How is the credit paid?
A production may claim up to 90% of its expected Section 481 credit at commencement of production, subject to the applicable certification, financing and Revenue requirements. Any advance claim is calculated using the standard 32% rate.
The additional 8% VFX uplift is claimed following completion, once the final eligible VFX expenditure and compliance requirements have been confirmed. In many ways, it’s very similar to the Scéal Uplift.
Producing VFX projects in Ireland
Ireland offers experienced VFX artists, internationally recognised studios and a growing digital-production infrastructure. Combined with the enhanced 40% tax credit, the VFX Uplift provides a strong incentive for international productions to locate high-value visual effects work in Ireland. We’re really to keen to see how it unfolds.
Irish Film Services can help international producers establish the required Irish production structure, apply for Section 481 certification and manage their VFX production and tax-credit claim in Ireland. Do get in touch!
