Spain’s Tax Rebate for Filmmakers: What You Need to Know

The Spanish government offers very attractive tax deductions to investors in film and television productions. These benefits are regulated under Article 36, Sections 1 and 2, of Law 27/2014, dated November 27, on Corporate Tax. The regulation applies across most of Spain’s Autonomous Communities, with the exception of the Canary Islands, Navarre, and the Basque Country.

But what criteria must be met to qualify for these fiscal benefits when shooting a film in Spain? Keep reading for all the details.

Eligibility Criteria

If you’re a filmmaker looking to benefit from Spain’s film tax incentives, you’ll need to meet certain requirements. First, you must be a producer registered in the ICAA’s (Spanish Film and Audiovisual Arts Institute) Registry of Film and Audiovisual Companies, and you must be responsible for executing a film or foreign audiovisual production.

Here’s a quick overview of the main eligibility requirements:

Minimum Local Spend Required

A minimum level of local spending is required, with varying tax rebate percentages depending on the amount:

• 30% on the first €1 million
• 25% on the remaining expenditure made in Spanish territory, provided that total eligible expenses are at least €1 million — or €200,000 for animated productions.

Eligible expenses must relate to creative personnel and costs linked to technical industries and local suppliers. However, there are maximum deduction limits:

• €20 million per feature film
• €10 million per episode for television series

Additionally, the total amount of combined incentives may not exceed 50% of the production cost.

The tax base includes the total production cost, expenses for copies, and promotion/advertising costs incurred by the producer — limited to 40% of the production cost. In the case of co-productions, these amounts are calculated according to the co-producer’s participation percentage.

Spain’s Cultural Test

According to Article 22 of Royal Decree 1084/2015, to qualify for a tax rebate, productions must prove they have cultural value. A Cultural Certificate must be obtained from the ICAA, and the production must meet at least two of the following criteria:

1. The original version is in any of Spain’s official languages or an EU language in international co-productions.
2. The content is mainly set in Spain.
3. The work is related to literature, music, dance, architecture, painting, sculpture, or any artistic expression.
4. The script is based on a pre-existing literary work.
5. The storyline has a biographical or historical character.
6. The content includes mythological or legendary elements linked to global cultural heritage.
7. The work promotes understanding of cultural, social, religious, ethnic, philosophical, or anthropological diversity.
8. It relates to Spanish cultural, social, or political themes.
9. One or more key characters are directly connected to Spanish reality.
10. The work is aimed at children or youth and promotes values aligned with Spain’s Education Laws.

Nationality Certificate

The production must also obtain a Nationality Certificate from the ICAA. As per Article 5 of Law 55/2007, this requires:

1. At least 75% of the authors (director, writer, cinematographer, composer) must be EU citizens or legal residents. This includes a mandatory requirement for the director.
2. At least 75% of the cast must meet the nationality or residency criteria.
3. At least 75% of the technical and creative team must meet the same criteria.
4. The original version should preferably be in one of Spain’s official languages.
5. Filming, post-production, and lab work must be done in Spain or other EU countries (for animation, production stages also apply).

Spanish audiovisual works include those co-produced with foreign companies under specific regulations or international agreements, especially those within the Ibero-American Community of Nations. A “community work” is any work with a nationality certificate issued by an EU Member State.

Mandatory Copy Deposit

A final requirement is the deposit of a new and perfect-condition copy of the completed work in the Spanish Film Archive (Filmoteca Española) or another officially recognized regional film archive.

Eligible Costs & Rebate Structure

As mentioned, Law 27/2014 governs tax deductions in most regions of Spain. However, some regions have introduced their own enhanced incentives to attract foreign filmmakers.

Mainland Spain & Balearic Islands

According to Article 36.1, investments in Spanish feature films and audiovisual series (fiction, animation, or documentary) qualify for tax deductions. These rules apply across most of mainland Spain and the Balearic Islands (Mallorca, Menorca, Ibiza, Cabrera, and Formentera).

Minimum investments and deduction percentages are as described in the previous section.

Canary Islands & Other Regional Bonuses

Two regions offer enhanced incentives: Canary Islands and Navarre.

• Canary Islands:
  Up to 50% deduction if a minimum spend of €1 million (€200,000 for animation) occurs in the region. The maximum deduction per project is €18 million.
• Navarre:
  Offers a 35% deduction (40% for animation and special works) if at least 40% of the deductible base is spent in the region. The maximum deduction is €5 million, with no quota limit.

Co-productions & Combining Incentives

Tax deductions also apply to investors who help finance a project. The total of all public incentives cannot exceed 50% of the total production cost, though this limit increases under certain conditions:

1. Up to 85% for short films.
2. Up to 80% for first-time or second-time directors with budgets under €1.5M.
3. Up to 80% for works in co-official languages other than Spanish.
4. Up to 80% for directors with a certified disability (≥33%).
5. Up to 75% for productions exclusively by female directors.
6. Up to 75% for culturally significant works requiring exceptional support.
7. Up to 75% for documentaries.
8. Up to 75% for animated works with budgets under €2.5M.
9. Up to 60% for EU transnational productions.
10. Up to 60% for international co-productions with Ibero-American countries.