Since 1994, the founding members of the Babieka Team have consistently and successfully identified and secured Film Finance from Spanish sources, from national and regional subsidies and rebates to tax shelter schemes and private equity. We have also been an active player and advisor during the change in government regulations relating to the public and private funding of films and tv fiction in Spain.
Today there are three main sources of soft and semi-soft film finance available in Spain; National Subsidies, Tax Shelter (Article 36.1) for Spanish nationality Films and Tv Fiction including International co-Productions, and Tax Rebate (Article 36.2) for International Productions shooting in Spain.
National Subsidies: Aimed at Spanish nationality films and international co-productions. A new system has been introduced in 2016 which involves a competitive points system. We have the same minimum cast & crew requirements as per the 2008 film law together with a slightly more strict cultural test that need to be satisfied to be eligible, and the rest is similar to the points system that we can find in the Eurimages or Media programmes. This is aimed at Spanish Independent producers and non-transferrable, but of course the value of the Spanish Territory is increased. Maximum subsidy is no more than 40% of the Spanish producer’s contribution and capped at 1,4M Euros and 70% is paid in advance by the Ministry of Culture (via the ICAA). Eligible projects are Feature Films and Documentaries with a theatrical release.
Tax Shelter (Credito Fiscal- Article 36.1): Aimed at Spanish nationality Films and TV Fiction (including co-productions) this is a great new system to attract private finance to film. There is an 20% (25% for the first million) tax relief for investors investing in Spanish Films and TV Fiction in mainland Spain (capped at €3M), a 35% relief in the Navarra region and a huge 40% (45% for the first million) for Canary Islands Films and TV Fiction including international co-productions (capped at €5,4M) if you meet certain requirements to obtain the Canary Islands certificate (min. 2 week shoot, 1 actor, 1 HOD).
Tax Rebate (Retorno Fiscal- Article 36.2): Aimed at Foreign productions shooting in Spain, we finally have a Tax Rebate in Spain. With a minimum spend of €1M, foreign producers obtain 20% on eligible spend capped at 3M euros in Mainland Spain, 35% on eligible spend in the Navarra region (Northern Spain) and 40% on eligible spend capped at 4,5M euros in the Canary Islands.
Please note that all these figures are Gross. For more information or advice on what system could work best for your project and an estimate of net amounts, please contact us.