45%-40% TAX CREDIT FOR INVESTMENT IN SPANISH PRODUCTIONS OR CO-PRODUCTIONS


In the case of national productions shot in the Canary Islands which obtain the Canaries Film Certificate, the deduction percentage is 45% on the first million Euros and 40% from then on. This incentive is capped at 5.4 million Euros.

What kind of production can benefit from the incentive?

  • Theatrical feature films
  • Drama series, animation or documentaries

Provided that they are granted the Canaries Film Certificate, issued by the Culture Department of the Government of the Canary Islands, apart from the nationality and cultural certificates issued by the Institute of Film and Audiovisual Arts (ICAA).

What kind of expenditure is eligible?
The deduction base is made up of the production costs, the expenses on making copies and expenses on publicity and promotion paid by the producer. Both are capped at 40 per cent of the production cost. Grants obtained to finance investments qualifying for deduction are not deductible.
At least 50 per cent of the deduction base must be of expenditure in Spain.

Who can benefit from the deduction?
Investors whose economic activity is based in the Canary Islands.

How is the tax deduction obtained?
The tax deduction is a tax credit deducted from the corporate income tax. If the tax payable was not high enough to cover the full amount of the deduction, the remaining amount can be deducted from the corporate income tax in the following years.

 

Further information: