40% TAX REBATE FOR FOREIGN PRODUCTIONS


Producers with tax domicile in the Canary Islands who are in charge of executing a foreign production (production service companies) benefit from a 40% deduction on the eligible expenditure in the Canaries. This incentive is capped at 5.4 million Euros.

What kind of productions qualify?
Foreign productions of feature films leading to a master copy to be subsequently mass produced. Therefore, feature films, animation films, drama series and documentaries are included.

What kind of expenditure is eligible?
Expenses in the Canary Islands directly related to the production:

  • Expenditure on creative staff provided that their tax residence is in Spain or in a European Economic Area Member State, capped at 100,000€ per person.
  • Expenditure on technical industries and other suppliers.

You can find a full list of eligible expenditure in this binding consultation.

Who can benefit from this deduction?
Production companies or production service companies whose tax domicile is in the Canary Islands and are registered in the Film and Audiovisual Arts Institute (ICAA) and have executed a foreign film.

How do I get the tax deduction?
The amount of the tax break (40% of eligible expenditure) is deducted from the corporate income tax in the tax period in which the production service is completed.

Further information: