TAX INCENTIVES FOR AUDIOVISUAL WORKS IN BIZKAIA: "TAX CREDIT"

Tax Incentives for Audiovisual Works in Bilbao 2026: Tax Credit Bizkaia for Film and Series

The tax incentives for audiovisual works in Bilbao and Bizkaia (Tax Credit Bizkaia) position the historic territory as one of the most competitive frameworks in Europe for feature films, short films, series and animation, with deductions of up to 70% for productions in Basque language. In this technical guide updated to 2026, we explain in a practical and comprehensive way how the Tax Credit Bizkaia works, the tiered deduction percentages (60%, 50%, 40%, 35%), aid intensity limits, cultural requirements, application by executive producer in international co‑productions, and combination strategies with other state and regional incentives.

If you are looking for a local partner specialized in tax rebate Bizkaia and executive production, check out our services for audiovisual production in Bizkaia, production in the Basque Country, film co-production in Spain and production company in Spain.

To plan a project that combines Bizkaia with other advantageous territories such as Canary Islands or Navarre, we also recommend our articles on film tax rebate Spain, film tax rebate Canary Islands 2026, tax credit art. 36.1 LIS Spanish film 2026, tax rebate for investment in cinema art. 39.7 LIS and grants to the Spain film industry, as well as the specialized guides on the blog of Camaleón Cinema Services.

Quick Summary Tax Credit Bizkaia 2026: Percentages and Limits

The following table summarizes the key elements of the Tax Credit Bizkaia for audiovisual productions in 2026. Use this comparison as a starting point to evaluate whether the tax rebate Bizkaia optimizes the tax structure of your project.

What is Tax Credit Bizkaia and Why is it Competitive at European Level

The Tax Credit Bizkaia is the tax incentive regime for audiovisual productions of the Historic Territory of Bizkaia, introduced by Norma Foral 9/2022, of November 23, which updates and expands tax incentives for cultural activities in the territory. This regime is articulated through articles 66 quater and 66 quinquies of Norma Foral 11/2013 on Corporate Income Tax, and offers tax deductions of up to 60% (70% for works in Basque language) on the deduction base for productions of feature films, short films, series and other audiovisual works.

The Tax Credit Bizkaia is distinguished from other audiovisual tax incentives in Spain by three key characteristics:

• Tiered percentages according to territorial spending: Unlike the general Spanish regime (art. 36 LIS) which applies fixed percentages, Tax Credit Bizkaia incentivizes the concentration of spending in the territory with increasing percentages (35%, 40%, 50%, 60%) according to the percentage of local investment.
• Application by executive producer: It is the only regime in Spain that allows the application of the deduction by the executive producer when the producer is non-resident without permanent establishment in Spain, making it a very attractive framework for international co-productions and service productions.
• No aid limit for "difficult" works: Works considered "difficult" (short films, first/second works, Basque language, low budget, market difficulties) have no aid intensity limit, compared to 50%-85% of other regimes.

In the European context, the Tax Credit Bizkaia competes with other consolidated tax rebates such as Ireland (32%), Czech Republic (20-30%), Hungary (30%) or Canary Islands (54%/45%), offering higher percentages when spending is concentrated in the territory and a foral tax structure that allows greater flexibility in the application of deductions. For a complete comparative analysis with other Spanish territories, check our guide on film tax rebate Spain.

Amendments to Norma Foral 11/2013 on Corporate Income Tax

What Investments Qualify for Tax Credit Bizkaia in Audiovisual Productions

Norma Foral 9/2022, of November 23, which updates and expands the tax incentives audiovisual works Bilbao in Bizkaia, establishes that investments and expenses in productions of feature films and short films and other audiovisual works of fiction, animation or documentary that allow the creation of a physical support prior to serial audiovisual production entitle the producer to a deduction in the net tax liability.

The deduction base consists of:

• Production cost: Includes all direct and indirect production expenses (pre-production, shooting, post-production) made in the territory.
• Copy obtaining expenses: Duplication, mastering and generation of exhibition copies costs.
• Advertising and promotion expenses: Provided they are borne by the producer and directly linked to the work.

The permanence requirement of the patrimonial elements provided for in Norma Foral 11/2013, of December 5, on Corporate Income Tax is understood to be fulfilled if the production company maintains the same percentage of ownership of the work for 3 years, without prejudice to its power to market totally or partially the exploitation rights derived from it to one or more third parties.

The deduction may be applicable by the executive producer only in cases where the producer of the audiovisual work is non-resident in Spanish territory and does not operate in said territory through a permanent establishment, which makes the Tax Credit Bizkaia an interesting enclave for international productions seeking efficient tax credit structures. For more information on executive producer structures, check our guide on film co-production in Spain.

When the deduction is applied by the executive producer, the deduction base consists exclusively of the production cost borne by the taxpayer and paragraph 5 of article 67 of Norma Foral 11/2013 does not apply. In the case of co-production, the amounts are determined for each co-producer in their respective percentage of participation in the work, which is especially relevant when combining structures in Bizkaia, general Spanish regime or Canary Islands.

The deduction is understood to be generated and is applied in the periods in which payments are made and for the amount thereof, which allows a progressive application of the deduction as the production is executed.

Tax Credit Bizkaia Deduction Percentage: 60%, 50%, 40% and 35%

The Tax Credit Bizkaia establishes a system of tiered percentages according to the percentage of investments and expenses made in the Historic Territory of Bizkaia. This system incentivizes the concentration of spending in the territory, rewarding with higher percentages productions that make a greater part of their investment in Bizkaia.

The deduction percentages are as follows:

a) 60 percent in productions in which the amount of investments and expenses included in the deduction base made in the Historic Territory of Bizkaia where the taxpayer has its tax domicile are greater than 50 percent of the total amount of investments and expenses.

b) 50 percent for productions in which the amount of investments and expenses included in the deduction base made in the Historic Territory of Bizkaia where the taxpayer has its tax domicile represent between 35 percent and 50 percent of the total amount of investments and expenses.

c) 40 percent for productions in which the amount of investments and expenses included in the deduction base made in the Historic Territory of Bizkaia where the taxpayer has its tax domicile exceed 20 percent of the total amount of investments and expenses and do not reach 35 percent.

d) 35 percent for other cases (when spending in Bizkaia is less than 20% of the total).

10-point Increase for Works in Basque Language

When audiovisual works are shot entirely in Basque language, the applicable deduction percentage is increased by 10 percentage points, which places the maximum percentage at 70% for productions in Basque language with more than 50% of spending in Bizkaia. This increase makes the Tax Credit Bizkaia one of the most competitive incentives in Europe for productions in minority languages, comparable to the levels of Canary Islands or Navarre in certain reinforced cases described in our guide on film tax rebate Spain.

Determination of Territorial Spending Percentage

The determination of the percentage of investments and expenses that make up the deduction base made in the Historic Territory of Bizkaia where the taxpayer has its tax domicile is made globally for the set of tax periods during which the deduction is applied. For this to occur, the taxpayer, in the first tax period in which the deduction is applied, must make an estimate of the percentage of investments and expenses included in the deduction base.

When it is verified that the percentage represented by investments and expenses comprising the deduction base made in the Historic Territory of Bizkaia where the taxpayer has its tax domicile over the total of said investments and expenses is lower or higher than that declared in the year in which the deduction was first applied, the deduction must be regularized in the last year of application thereof by applying the definitive deduction percentage that corresponds.

Maximum Deduction Limit of Tax Credit Bizkaia per Audiovisual Work

The amount of the deduction together with the rest of the aid obtained by the taxpayer for each audiovisual work cannot exceed 50 percent of the total production budget, except if it is a production financed by more than one Member State of the European Union and in which producers from more than one Member State of the European Union participate. In such case it cannot exceed 60 percent of the total production budget, in line with what is provided for European co-productions and described in our guides on financing structures art. 39.7 LIS and grants to the Spain film industry.

When the deduction is applied by the executive producer, the aforementioned percentages apply only to the expenses borne by the taxpayer.

Exceptions to the Aid Limit: "Difficult" Works and OECD-DAC Co-productions

The aforementioned limit does not apply in cases of audiovisual works that are considered difficult, and likewise does not apply in co-productions in which countries that are on the OECD Development Assistance Committee List participate. This exception makes the Tax Credit Bizkaia an especially attractive framework for:

• Short films and first/second works of directors.
• Productions in Basque language (which are considered difficult works due to minority language).
• Low budget works (less than 1 million euros).
• Documentaries and auteur animation with market difficulties.
• Co-productions with developing countries (OECD-DAC List).

Requirements to Apply for Tax Credit Bizkaia in Audiovisual Productions

To apply for the tax incentives audiovisual works Bilbao it is necessary to meet the following requirements:

• 1. Cultural certificate: That the production obtains the certificate that accredits the cultural character of the work in relation to its content, which is linked to cultural reality or contributes to the enrichment of diversity, issued by the Institute of Cinematography and Audiovisual Arts (ICAA), the corresponding body of the Autonomous Community with competence in the matter, or by an equivalent body of another Member State of the European Union or the European Economic Area.
• 2. Film archive deposit: That a new copy in perfect condition is deposited in the Basque Film Archive or in institutions or bodies with competence to collect, catalog, preserve, restore or make available to the public audiovisual works. Delivery will be made on the same medium used in the exhibition. This requirement does not apply when the deduction is applied by the executive producer or when it is not a work of Spanish nationality.
• 3. Tax domicile in Bizkaia: The taxpayer must have its tax domicile in the Historic Territory of Bizkaia to be able to apply the deduction.
• 4. Permanence requirement: Maintain the same percentage of ownership of the work for 3 years, without prejudice to the power to market totally or partially the exploitation rights.

Cultural Certificate for Tax Incentives Audiovisual Works Bilbao

According to article 22 of R.D. 1084/2015, for an audiovisual production to obtain the tax incentives audiovisual works Bilbao (Tax Credit Bizkaia) it must accredit as a necessary requirement its cultural character.

The cultural certificate is granted by the Institute of Cinematography and Audiovisual Arts (ICAA) through an application made by the production company/companies, which will resolve by assessing that at least two of the requirements indicated below are met:

1. That the work has as its original version any of the co-official languages of Spain. When it comes to co-productions with foreign companies, the feature film may have as its original version one of the official languages of the European Union.
2. The content is mainly set in Spain.
3. The content is related to literature, music, dance, architecture, painting, sculpture or an artistic expression.
4. The script is an adaptation of a pre-existing literary work.
5. The content of the audiovisual work has a biographical character or reflects historical facts or characters, without prejudice to the free adaptations of the script, typical of a cinematographic production.
6. That the content includes stories, facts or mythological or legendary characters that can be considered to be integrated into any cultural heritage or tradition of the world.
7. That it allows a better knowledge of cultural, social, religious, ethnic, philosophical or anthropological diversity.
8. That the content is related to issues or themes that are related to Spanish social, cultural or political reality, or that have some impact on them.
9. That one of the protagonists or several of the secondary characters of the cinematographic story have a direct link with Spanish social, cultural or political reality.
10. That the work is specifically aimed at children or young audiences, and contains values in accordance with the principles and purposes set out in the Education Law and the Law for the Improvement of Educational Quality.

The cultural certificate is a common requirement for all audiovisual tax incentive regimes in Spain (general regime, Canary Islands, Navarre, Bizkaia), and its obtaining is prior to the application of the deduction. For more information on the process of obtaining the certificate, check our guide on film tax rebate Spain.

When an Audiovisual Work is Considered "Difficult" in Tax Credit Bizkaia

An audiovisual work is considered "difficult" for the purposes of the tax incentives audiovisual works Bilbao (Tax Credit Bizkaia) if it is among the following cases:

• a) Short films.
• b) Films that are the first or second work of a director.
• c) Works whose only original version is in Basque language.
• d) Low budget works: those that by production cost do not exceed 1,000,000 euros.
• e) Works that due to their theme or other issues related to production have difficulties in entering the market. In this case, the taxpayer must demonstrate that the work has difficulties in entering the market, and must request from the Tax Administration the classification as a difficult work prior to the end of the first tax period in which the taxpayer accredits the right to the deduction.

As a general rule, the definitions referred to in the previous paragraphs are contemplated in Law 55/2007, of December 28, on Cinema.

The consideration of "difficult" work has two key tax advantages:

• No aid intensity limit: Difficult works are not subject to the 50%-60% limit of the total budget, which allows combining Tax Credit Bizkaia with other aid and subsidies without restrictions.
• Access to additional aid: Difficult works have access to specific aid lines (ICAA, regional, MEDIA) with increased percentages, as described in our guide on grants to the Spain film industry.

Taxpayers who accredit their right to the Tax Credit Bizkaia give their consent to the dissemination of their data corresponding to the deduction according to current regulations. The Provincial Council of Bizkaia will publish the information according to said regulations.

Tax Credit Bizkaia for Executive Producer in International Co-productions

One of the most distinctive characteristics of the Tax Credit Bizkaia is the possibility of applying the deduction by the executive producer, which makes it the only audiovisual tax incentive regime in Spain that allows this structure. This characteristic is especially relevant for international co-productions and service productions in which the main producer is non-resident in Spain.

Requirements for Application by Executive Producer

The deduction may be applicable by the executive producer only in cases where the producer of the audiovisual work is non-resident in Spanish territory and does not operate in said territory through a permanent establishment. In this case:

• The deduction base consists exclusively of the production cost borne by the taxpayer (executive producer).
• Paragraph 5 of article 67 of Norma Foral 11/2013 does not apply.
• The executive producer is not obliged to deposit a copy in the Basque Film Archive (requirement that only applies to the producer of Spanish nationality).
• Aid intensity limits (50%-60%) apply only to expenses borne by the executive producer.

Advantages of the Executive Producer Structure in Tax Credit Bizkaia

The executive producer structure in Tax Credit Bizkaia offers several advantages for international productions:

• Access to deductions without permanent establishment: The international producer does not need to establish a Spanish company or permanent establishment, reducing administrative and tax costs.
• Direct application of the deduction: The Spanish executive producer applies the deduction in its Corporate Income Tax self-assessment, simplifying the tax structure.
• Combination with other incentives: The structure allows combining Tax Credit Bizkaia with tax incentives from the main producer's country of origin, optimizing the global tax structure.
• Flexibility in co-productions: Facilitates international co-production structures in which the Spanish executive producer provides production services and access to tax credit, while the international producer maintains creative and commercial control.

For more information on international co-production structures and executive producer, check our guide on film co-production in Spain and our services for audiovisual production in Bizkaia.

Practical Cases Tax Credit Bizkaia: Deduction Calculation Examples

Below we present three practical cases that illustrate how the Tax Credit Bizkaia deduction is calculated in different production scenarios.

Practical Case 1: Feature Film with More Than 50% Spending in Bizkaia

Project data:

• Total production budget: €3,000,000
• Spending in Bizkaia: €1,800,000 (60% of total)
• Type of work: Fiction feature film (not Basque)
• Other public aid: €300,000 (ICAA subsidy)

Deduction calculation:

• Deduction base: €3,000,000 - €300,000 (subsidies) = €2,700,000
• Applicable percentage: 60% (spending in Bizkaia > 50%)
• Tax Credit Bizkaia deduction: €2,700,000 × 60% = €1,620,000
• Total aid: €1,620,000 + €300,000 = €1,920,000
• Aid intensity: €1,920,000 / €3,000,000 = 64% (exceeds 50% limit)
• Adjusted deduction: (€3,000,000 × 50%) - €300,000 = €1,200,000

Conclusion: The final deduction is €1,200,000, limited by the 50% aid intensity cap for standard works.

Practical Case 2: Series in Basque Language with 70% Deduction

Project data:

• Total production budget: €1,500,000
• Spending in Bizkaia: €900,000 (60% of total)
• Type of work: Fiction series shot entirely in Basque language
• Other public aid: €150,000 (regional aid)
• Consideration: "Difficult" work (Basque language)

Deduction calculation:

• Deduction base: €1,500,000 - €150,000 = €1,350,000
• Applicable percentage: 60% + 10% (Basque) = 70%
• Tax Credit Bizkaia deduction: €1,350,000 × 70% = €945,000
• Total aid: €945,000 + €150,000 = €1,095,000
• Aid intensity: €1,095,000 / €1,500,000 = 73%
• Final deduction: €945,000 (no limit for being "difficult" work)

Conclusion: The final deduction is €945,000, with no aid intensity limit for being a work in Basque language ("difficult" work).

Practical Case 3: International Co-production with Executive Producer

Project data:

• Total production budget: €5,000,000
• Spanish executive producer spending in Bizkaia: €2,000,000 (40% of total)
• Main producer: French production company (non-resident, no PE in Spain)
• Type of work: Fiction feature film (EU co-production)
• Other public aid to executive producer: €0

Deduction calculation:

• Deduction base: €2,000,000 (only executive producer expenses)
• Applicable percentage: 50% (spending in Bizkaia between 35%-50% of executive producer spending)
• Tax Credit Bizkaia deduction: €2,000,000 × 50% = €1,000,000
• Intensity limit: 60% of executive producer spending (EU co-production)
• Maximum limit: €2,000,000 × 60% = €1,200,000
• Final deduction: €1,000,000 (within limit)

Conclusion: The Spanish executive producer can apply a deduction of €1,000,000 in its Corporate Income Tax self-assessment, without the French producer needing to establish a permanent establishment in Spain.

Combination Strategies Tax Credit Bizkaia + art. 36 LIS + Canary Islands

The tax optimization of an audiovisual project in Spain is not limited to the application of a single regime. In practice, the most efficient structures combine several elements to maximize tax return within the permitted aid intensity limits.

Strategy 1: Co-production Bizkaia + General Regime (art. 36.1 LIS)

This structure is suitable for medium budget productions (€2-8 million) seeking to combine the high percentage of Tax Credit Bizkaia with the high maximum limit of the general regime (€20M per work).

Structure:

• Co-producer A (Bizkaia): 40% participation, concentrates shooting and post-production in Bizkaia, applies Tax Credit Bizkaia (60%).
• Co-producer B (Madrid): 60% participation, concentrates pre-production and distribution, applies art. 36.1 LIS (30%/25%).
• Advantage: Optimization of deduction percentage in the Bizkaia part, maintaining access to the maximum limit of the general regime.

For more information on co-production structures, check our guide on film co-production in Spain and tax credit art. 36.1 LIS Spanish film 2026.

Strategy 2: Executive Producer Bizkaia + International Producer + art. 39.7 LIS

This structure is ideal for international service productions seeking to maximize tax return through the combination of Tax Credit Bizkaia and deduction financing (art. 39.7 LIS).

Structure:

• International producer: Non-resident, no PE in Spain, maintains creative and commercial control.
• Executive producer (Bizkaia): Applies Tax Credit Bizkaia on its expenses in Bizkaia.
• Spanish financial investor: Participates in financing via art. 39.7 LIS, applies deduction art. 36.2 LIS on the part of production executed in Spain outside Bizkaia.
• Advantage: Maximization of tax return combining Tax Credit Bizkaia (60%-70%) + art. 36.2 LIS (30%/25%) + financing art. 39.7 LIS (1.20 multiplier).

For more information on the art. 39.7 LIS financing mechanism, check our guide on tax rebate for investment in cinema art. 39.7 LIS.

Strategy 3: Combination Bizkaia + Canary Islands for Large Budget Productions

This structure is suitable for large budget productions (over €15 million) seeking to combine the high percentages of Bizkaia and Canary Islands with the higher maximum limits of the Canary regime (€36M per work).

Structure:

• Co-producer A (Bizkaia): 30% participation, concentrates post-production and VFX in Bizkaia, applies Tax Credit Bizkaia (60%).
• Co-producer B (Canary Islands): 70% participation, concentrates shooting in Canary Islands, applies special Canary Islands regime (54%/45%).
• Advantage: Maximization of tax return combining the highest percentages in Spain (Bizkaia 60% + Canary Islands 54%/45%) with the highest maximum limit (€36M).

For more information on the special Canary Islands regime, check our guide on film tax rebate Canary Islands 2026.

Comparison Tax Credit Bizkaia vs Spain vs Canary Islands vs Navarre

When deciding where to locate your audiovisual production, it is key to compare the deduction percentages, maximum limits and territorial requirements of each incentive. The following table summarizes the key points of the Tax Credit Bizkaia compared to the regimes of Spain (general), Canary Islands and Navarre.

As can be seen, the Tax Credit Bizkaia stands out for its high percentages (up to 60%-70%) when spending is concentrated in the territory, and for the possibility of application by executive producer in international productions. For large budget projects, Canary Islands offers higher maximum limits (€36M), while Navarre presents an intermediate scheme with a cap of €5M. The strategic combination of several territories can optimize the overall tax structure of the production.

Comparison Tax Credit Bizkaia vs Other European Tax Rebates

In the European context, the Tax Credit Bizkaia competes with other consolidated tax rebates that attract international productions. The following table compares the key elements of Tax Credit Bizkaia with the main audiovisual tax incentives in Europe.

Comparative analysis:

• Deduction percentage: Tax Credit Bizkaia offers the highest percentage in Europe (60%-70%) when spending is concentrated in the territory, surpassing Canary Islands (54%/45%), Italy (40%), Ireland (32%) and Hungary (30%).
• Maximum limit: Canary Islands offers the highest maximum limit in Spain (€36M), followed by Ireland (€125M) and France (€30M). Bizkaia, Czech Republic, Hungary and Italy do not have an absolute maximum limit, but aid intensity limits (50%-60% of budget).
• Minimum local spending: Bizkaia has a tiered system that allows access to deductions from low percentages of local spending, while other countries require fixed thresholds (€1M in France, Czech Republic, Italy; €250,000 in Ireland, Hungary).
• Executive producer: Bizkaia, Ireland, Czech Republic, Hungary, United Kingdom and Italy allow application by executive producer, which facilitates service production structures for international productions.

Competitive advantages of Tax Credit Bizkaia:

• Highest percentage in Europe for productions that concentrate spending in the territory (60%-70%).
• Flexibility in territorial spending: Tiered system that allows access to deductions from low percentages of local spending.
• No limit for "difficult" works: Short films, first works, Basque language, low budget and market difficulties have no aid intensity limit.
• Application by executive producer: Facilitates international co-production structures without the need for permanent establishment.
• Proximity to France: Logistical advantage for Franco-Spanish co-productions and access to crew and services from both countries.

Locations and Production Services in Bilbao and Bizkaia

Bizkaia offers a wide variety of filming locations that combine natural landscapes, historic architecture and contemporary urban environments, along with a consolidated technical infrastructure of studios, equipment and post-production services.

Main Filming Locations in Bizkaia

• Bilbao: Contemporary architecture (Guggenheim Museum, Zubizuri, Iberdrola Tower), Old Town, Bilbao Estuary, reconverted industrial environments.
• Biscay coast: Gaztelugatxe cliffs (Game of Thrones), Sopelana and Plentzia beaches, Bermeo fishing port, Urdaibai Biosphere Reserve.
• Interior of Bizkaia: Gorbeia forests, Arratia and Duranguesado valleys, Basque rural architecture, historic farmhouses.
• Industrial environments: Bizkaia Blast Furnaces (industrial heritage), shipyards, historic bridges.

Technical Infrastructures and Production Services

• Film studios: Film and television studios in Bilbao and metropolitan area.
• Equipment rental: Digital cinema cameras (ARRI, RED, Sony), optics, lighting, grip, sound. Check our services for audiovisual equipment rental and cinema camera rental in Bilbao.
• Post-production: Companies specialized in editing, color grading, VFX, sound and mastering in Bilbao.
• Local crew: Technicians and audiovisual professionals with experience in national and international productions.
• Production services: Local production companies specialized in executive production, filming logistics, permit management and coordination with institutions. Check our services for audiovisual production in Bizkaia and production in the Basque Country.

Logistical Advantages of Bizkaia for Audiovisual Productions

• Connectivity: Bilbao Airport with direct connections to main European cities, AVE to Madrid (2h 30min), proximity to France (border 1h away).
• Geographic concentration: Diversity of locations (coast, mountain, city, industrial) within a 50 km radius.
• Hotel infrastructure: Wide range of accommodation in Bilbao and metropolitan area.
• Institutional support: Bizkaia Film Commission offers support in permit management, location scouting and coordination with institutions.
• Experience in international productions: Bizkaia has hosted filming of international productions such as Game of Thrones, Patria, Money Heist, among others.

Common Rules Affecting Tax Incentives Audiovisual Works Bilbao

1. The deduction base is reduced by the amount of subsidies received to finance the investments and expenses that generate the right to deduction.

2. The taxpayer must submit together with the tax self-assessment in which it avails itself of the related deductions a list of other public aid or subsidies received so that compliance with the maximum deduction possibilities mentioned can be verified.

3. Non-compliance with the requirements that must be applied in each deduction and that must be met in subsequent years to that in which the deduction is applied obliges to pay the unpaid fees at the time for the tax deductions applied with the corresponding late payment interest, which must be added to the resulting fee of the self-assessment of the year in which the non-compliance occurs.

4. Additional requirements for the application of deductions may be established by regulation, in particular those related to the information that must be included in the work's credits and the transfer of graphic and audiovisual material that must be made for its non-commercial and exclusive use in the promotion of the territory.

Participation in Financing Audiovisual Works: Tax Credit Bizkaia

Taxpayers of Corporate Income Tax or Personal Income Tax operating through a permanent establishment and participating in the financing of the production of feature films and short films and other audiovisual works, and fiction, animation or documentary series that allow the creation of a physical support prior to serial industrial production that meet the requirements to generate their right to the referred tax deductions, are entitled to apply a deduction from the net tax liability as established in this regulation. This deduction is incompatible, totally or partially, with the deductions to which those other taxpayers would be entitled by applying this provision.

This deduction is not applicable when the taxpayer participating in the financing of the production is linked to the taxpayer carrying it out in the manner established in the Norma Foral.

It is understood that the taxpayer participates in the financing of the production of an audiovisual work of another taxpayer when it contributes amounts as a grant to cover all or part of the investments and expenses that make up the deduction base. Subrogation in the position of taxpayer participating in the financing is not admitted except in cases of universal succession.

Financing Contract Requirements

To apply participation in the financing of an audiovisual production it is necessary to sign a contract with the requirements established in Norma Foral 11/2023.

Taxpayers participating in the financing cannot acquire intellectual property rights or other rights over the production results.

Application of the Deduction by the Financial Investor

If taxpayers choose to apply the aforementioned participation regime, the producer and/or executive producer are not entitled to apply the total or partial corresponding amount of the deduction, and instead the taxpayer participating in the financing is entitled to accredit in its Tax self-assessment the deduction, determining the amount under the same conditions that would have been applied to taxpayers who had generated the right to apply the deductions. However, the taxpayer participating in the financing cannot apply a deduction greater than the result of multiplying by 1.20 the amount of the amounts it has disbursed for financing. The excess may be applied to taxpayers who are not participating in the financing.

The taxpayer participating in the financing will apply annually the deduction corresponding to it according to the contributions disbursed in each tax period, as well as the deduction provided for in general that is accredited in each tax period. If the taxpayer participating in the financing contributes in the tax period amounts that could have allowed it a higher deduction, the excess can be applied in subsequent tax periods with the aforementioned limitations.

The application of the deduction corresponding to the taxpayer participating in the financing of an audiovisual work must be taken into account as provided in the Norma Foral, and the amount must be taken into account for the purposes of applying the 35 percent limit established in said Norma.

Communication to the Tax Administration

Taxpayers intending to avail themselves of this deduction must submit the aforementioned financing contract in communication to the Tax Administration signed by all parties prior to the end of the tax period in which the deduction is generated, as established by regulation. They must also submit the certificate accrediting the cultural character of the work, or document accrediting its application.

This financing participation mechanism is equivalent to article 39.7 LIS of the general Spanish regime, and allows financing structures similar to those described in our guide on <a href="https://www.camaleonrental.com/gb/blog/tax-rebate-for-investment-in-cinema-in-spain-art