Spain Market 2016 Tax Incentives Spain Spain Film Commission. Shooting In Spain Co-Producing With Spain
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Financing Cinematographic Productions In Spain
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Financing Cinematographic Productions In Spain What Is ICAA? ICAA is a policy management and planning body that supports the cinematographic sector and audiovisual production. Its tasks include the development, promotion and arrangement of cinematographic and audiovisual activities as regards production, distribution and exhibition.
Who Has Access To ICAA Film Funding? Production companies, of Spanish or other EU member state nationality, established in Spain, which carry out: Productions that are considered national productions: • At least 75% of the list of production agents involved (director, screenwriter, photography director and music composer) are Spanish nationals or belong to other EU member states, or other signatory states of the European Economic Area Treaty, or hold a valid residence card or permit in Spain or in any of these other states. In any case, the film director must always meet this requirement. • At least 75% of the actors and other artists participating in the production are persons who meet the foregoing requirements. • At least 75% of all technical creative staff, and other technical staff involved in the production, are persons who meet the foregoing requirements. • The work is preferably filmed in its original version or in an official language of the Spanish state. • The shooting, except for script requirements, studio postproduction and laboratory work are all carried out in Spain or in another European Union member state. Jointly produced productions with foreign companies that meet the requirements foreseen in applicable international treaties or, otherwise, the general rules established in the Spanish Film Regulations. The foregoing will be considered Spanish films if the co-production project is approved by ICAA or the competent Autonomous Community.
• Be up to date in all tax and Social Security obligations. • Not hold a debt due to subsidy refunds. • Not have applied for a bankruptcy declaration. • Not be sanctioned with the loss of eligibility to obtain subsidies, due to breaching regulations in gender equality matters. • Not enjoy tax residence in a country legally classified as a tax haven.
Production Funding • General - Production of feature films based on a project: Finance production costs, according to a point system • Selective - Production of feature films based on a project: of particular cinematographic, cultural or social value; documentary or experimental; or in which new producers are involved. • Production of short films: based on a project and completed.
Promotion Funding • For companies that produce films selected by international festivals of renowned prestige. • For creation of Film Festival within Spain. • For distribution of films in Spain. • For More Information www.ICAA.es
Spain Market 2016
• Provide documentary confirmation of meeting the obligations undertaken with all creative, artistic and technical staff, as well as technical industries.
Tax Incentives Spain
• Hold property rights over the works.
Spain Film Commission. Shooting In Spain
• Legally reside or have an establishment in Spain.
Co-Producing With Spain
All production companies will:
Financing Cinematographic Productions In Spain
Requirements To Access ICAA Film Funding
Co-Producing with Spain In the current scenario of the Spanish film sector, co-productions are gaining strength year after year. Over the last ten years (2005-2015), 560 feature films have been coproduced with foreign countries.
What Are International Co-Productions? Films that are jointly produced with foreign companies, governed by applicable international treaties or, by default, by the general rules established in the Spanish Film Act Regulations.
What Does Spain Have To Offer? The filmmaking and audiovisual business is a strategic sector in Spain´s culture and economy. Some reasons to shoot in Spain: • Tax advantages. • Amazing variety of locations (peaceful beaches with crystal clear water, rough seas, snowy mountains, tropical landscapes, arid horizons, rural villages, remote roads, modern cities, prehistoric monuments, cutting-edge buildings). • Professionals and service companies with experience working with foreign companies. • A perfect climate with more than 300 long sunny days a year pleasant temperatures both in winter and in summer, safe and comfortable country. • Rich offer in catering and accommodation, extensive network of infrastructures and transportation with the most complete high-speed rail network in Europe. • 48 airports and more than 180,000 miles of roads and motorways. • Quality lifestyle in Spain. • Most modern film studios in Europe.
Co-Produce With Spain All co-productions governed by international treaties are considered national productions, which is why the same sources of funds are available as for purely national productions.
• ICAA financial support for creation, production and promotion. • Tax breaks due to investments in cinematographic and audiovisual productions.
Requirements Applicable to Co-Production With Spain • The projects in question should be considered as national projects in the co-producing countries and be entitled to the benefits granted in said countries under their respective laws. • Execution by creative and technical staff and services companies holding the nationality of one of the co-producing countries. As an exception, 10% of all creative staff may be non-EC or not a national of the co-producing countries. • Participation of the co-producing countries should range between 20% and 80% of the film’s budget or, for multi-party co-productions, the smallest participation must be at least 10% and the greatest 70% of the budget, as a maximum.
Financial Co-Productions Co-production projects may be approved that involve one or several contributions, limited to a financial contribution, if the following conditions are met: • The project is able to obtain approval from the majority coproducer’s country. • All financial contributions must be at least 10% and not greater than 25% of the project’s budget. • Co-production must help promote the cultural diversity of the co-producing countries. Approval of this form of co-production is conditioned to the general balance sheet existing between the co-producing countries.
Partners Under International Treaties Germany, Argentina, Austria, Brazil, Canada, Chile, China, Cuba, France, India, Ireland, Israel, Italy, Morocco, Mexico, New Zealand, Portugal, Puerto Rico, Russia, Tunisia, Venezuela.
Spain Market 2016
All audiovisual co-productions governed by international treaties, considered national co-productions, may benefit from:
Tax Incentives Spain
Financing In Spain
Spain Film Commission. Shooting In Spain
See at the ICAA website www.ICAA.es where you can find a film directory with the different associations of producers in Spain.
Co-Producing With Spain
How To Find A Spanish Partner
Tax rebates
15% TO 35% %% Rivers 13.450 miles, %% Snow-capped mountains 9 months year, %% Coastline 4.900 miles, %% 2.500 castles, %% 63 cities with more than 100.000 people, %% Roads 103.020 miles, %% 10 different climates, %% and many more... Navarra
35% tax credit
15% Canary Islands
35%
Spain Market 2016 Tax Incentives Spain
Spain Film Commission. Shooting In Spain
Tax Incentives Spain The attractiveness of Spain for foreign film and television productions stems, not just from its internationally recognized great professionals, unbeatable sceneries and excellent natural and weather conditions, but also from a new tax framework that greatly improves the system of incentives for the film industry.
Tax Rebates For Spanish Productions Investments in Spanish film and audio-visual productions entitle the producer to a tax relief of 20 per cent from the first million euros of the base deduction, and 18 per cent on the excess of this amount, with a maximum of €3 million per production. The base deduction equals the total cost of production plus the cost of copies, advertising and promotion by the producer (with a limit of 40 percent of the production costs). The law establishes a territorial requirement and 50% of the base deduction must correspond to costs incurred in Spanish territory. Also it expressly provides that the amount of all tax incentives received may not exceed 50% of the production cost. The prouction support is granted if the objectives requirements are fulfilled. The requirements include, inter alia: • That the production obtains a certificate of Spanish nationality and a cultural certificate. • That a new copy of the work is deposited in the Spanish Film Library or equivalent body of an Autonomous Community.
The executive producer (registed in the ICAA’s Film and Audiovisual companies Register) of a foreign film or audiovisual is entitled to a tax relief of 15% of the costs incurred in Spanish territory in this production provided said costs equal at least 1 million euros. The expenses that qualify for this tax relief must be creative personnel costs and expenses arising from the use of technical industries and other suppliers. The amount of this tax relief may not exceed 2.5 million per production and the total amount of any incentives may not exceed 50% of the production cost
Regional Level There are two regions within Spain who has a deduction of 35%: Canary Island and Navarre. In the case of Canary Island, the deduction is 35% if a minimum expenditure of 1 million euros is made in Spanish territory and the amount deducted may not be greater than 4,5 million euros for cost incurred in Canary Island. The deduction applied with no limit. For Navarre the deduction is 35% (tax credit) if a minimum of at least one week´s filming in Navarre and the application of deduction is without quota limit
For more info
investinspain@icex.es www.investinspain.org
coordinacion@spainfilmcommission.org www.shootinginspain.info
Spain Market 2016
National Level
Tax Incentives Spain
Tax Rebates For Foreign Films
Spain Market 2016 Total Box Office:
605.499.305€ Box Office for Spanish Films:
109.997.640€ Total Admissions:
101.004.301
MOVIE THEATERS
3D SCREENS
675
922
SCREENS
AVERAGE TICKET PRICE
3.492
5,98€
Top 10 Films by Admissions in Spain Title
Un Monstruo Viene A Verme The Secrets Life Of Pets Finding Dory The Jungle Book Zootopia The Revenant Rogue One: A Star Wars Story Fantastic Beasts and Where to Find Them Palmeras En La Nieve Suicide Squad
Spain Market 2016
Population
46.4 mill. Admissions Spanish Films:
18.336.660
Market Share Spanish Films:
18,2
%
Spanish Feature Films Produced between 2005 and 2016 300 200
173
200
150
186
172
182
255
231
number of film
249 production 216
199 49
48
56
57
42
57
41
2011
2012
2013
2014
2015
2016
2007
51
2010
49
2009
57
2008
2005
0
41
2006
142
100 53
Distributor Release UPI UPI
DISNEY DISNEY DISNEY FOX
DISNEY WBI WBI WBI
number of films coproduced
Admissions
4.620.133 05 / 08 /2016 3.922.844 22 / 06 /2016 3.190.758 15 / 04 /2016 2.990.024 12 / 02 /2016 2.295.210 05 / 02 /2016 2.247.379 16 / 12 /2016 2.104.934 18 / 11 /2016 2.058.075 25 / 12 /2015 1.899.845 05 / 08 /2016 1.807.893 07 / 10 /2016
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