In the case of national productions shot in the Canary Islands which obtain the Canaries Film Certificate, the deduction percentage is 50%¹ on the first million Euros and 45% from then on.
This incentive is capped at 12,4 million Euros2.
1.The limits are increased depending on the type of production, as a result of RD17 / 2020 of May 5
2.Publication pending future legislative amendments: the maximum limit increases to 18.000.000€
What kind of production can benefit from the incentive?
- Feature films
- Drama series, animation or documentaries series
Provided that they are granted the Canary Islands Audiovisual Production 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% 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?
Producers 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.