AID FEATURE FILMS SPAIN

GRANTS FOR FEATURE AND SHORT FILMS IN SPAIN

• With regard to the procedure for awarding grants for the production of feature films and short films, the following rules common to all grants are established:

• 1. The procedure for awarding grants is processed on a competitive basis according to the annual appropriations allocated to them. It is initiated ex officio for each type of aid by means of a call for applications published in the National Subsidies Database in accordance with the procedure established in Law 38/2003, the General Subsidies Law. The calls for applications, depending on the purpose of the aid, contain the individualised amount of the aid, and if it is not possible to determine the objective criteria used to determine the amount, which in all cases will take into account budget availability, the amount of eligible expenditure, the maximum amount of aid that can be granted, the assessment of applications made by the corresponding body and, if applicable, the amount requested. Each call for proposals may establish criteria for the distribution of the annual budget allocation according to the score obtained by the film projects or films. A minimum score may also be established for access to the Grants.
• 2. The procedure is carried out according to the lines of Grants by single call or by open call with several selection procedures throughout the year, according to the legally foreseen requirements. The open call must establish a calendar with the various deadlines for the submission of applications corresponding to the respective selection procedures carried out during the year. When the aid corresponding to the end of a financial year has been granted and the maximum amount to be granted has not been exhausted, the full amount not applied may be transferred to the next selection procedure.
• 3. The calls for proposals may relate to one or more of the cases covered by the purpose of each of the aid modalities according to the specific promotion policies deemed necessary to be undertaken in each financial year.

What are the requirements to be a beneficiary of aid for audiovisual production in Spain?

• In addition to being in a specific situation that justifies the granting of aid, applicants must meet the following general requirements: They must not have been sanctioned with the loss of the possibility of obtaining subsidies for failure to comply with the regulations on equality between men and women as set out in the R.D. 5/2000, Law on Infringements and Sanctions in the Social Order. Not to be involved in any of the cases provided for in article 13.2 of Law 38/2003:

• Own the property rights to the audiovisual works produced insofar as they are necessary for the marketing and exploitation of such works, subject to the provisions of intellectual property legislation on the transfer and exercise of rights of this nature.

• This requirement is deemed to be fulfilled if the ownership of the rights to the work is distributed among the co-producing companies. Ownership must be maintained for a minimum period of three years after the work is qualified.

• Comply with the legal and conventional regulations applicable to relations with creative, artistic and technical personnel, and be up to date in the payment of the obligations contracted with this personnel and with the technical industries in the last audiovisual work of the same production company that has obtained any public state aid.

• Proof of compliance with the obligation to be up to date with the payment of the script of the project submitted to the call for applications for aid in the following terms: In the case of general aid for the production of feature films on project, at least 50 % of the amount of the script must be accredited; in the case of selective aid, at least 33 % must be accredited; and in the case of aid for the production of short films, payment must be accredited in accordance with the clauses of the contract formalised between the parties.

• Except in cases where the scriptwriter is both producer or where the same person acts as scriptwriter and individual entrepreneurial producer, contracts waiving partial or full payment for the script are not admissible.

What are the requirements for a grouping of legal entities to be eligible for aid?

• When the eligible activity is carried out jointly by several legal entities, in order to obtain the status of beneficiary, they must form a group of production companies acting through the person the group designates as its representative or production-management company with representative capacity to act in the name and on behalf of all the production companies for the purposes of applying for aid, of the documentation accrediting compliance with the obligations deriving from the award of the subsidy and of its justification.

• The grouping may not be dissolved until the statute of limitations and, where applicable, the infringements provided for in the General Law on Subsidies, Articles 39 and 65, have elapsed.

• The managing film company of the grouping must be designated as the one with the largest expenditure commitment. In the event that several production companies equally assume the largest expenditure commitment, one of them must be designated.

• Non-independent production companies participating in the aid for which they are eligible as beneficiaries may not hold a percentage of ownership of more than 60 % of the project, nor have the status of representative or production-management company of the group. The standard agreement model of the Ministry of Culture and Sport must be used for the constitution of the grouping of companies.

• The aid application must state the amount of aid requested and the implementation commitments undertaken by each member of the group, who will also have the status of beneficiary.

• The percentages of ownership of the work by each of the co-producing companies must also be stated, which may be subject to subsequent modifications provided that they are made prior to the application for qualification of the work.

• It is the responsibility of the beneficiary or, where applicable, of the production-management company of the project to comply with the requirements foreseen to justify the aid granted, as well as with the other obligations regulated in the General Law on Subsidies with regard to the subsidisable activities that they have undertaken to carry out, without their compliance or the liability derived from the same being conditioned in any case by the existence of private agreements on rights and obligations derived from the production with other persons holding the property rights of the work, with other co-producing companies or with third parties, or by their participation in the total cost of the subsidised work.

• All companies involved in the production of the project must meet the necessary requirements to qualify as beneficiaries of the aid.

What are the general obligations of the beneficiaries of audiovisual production aid?

• In addition to the specific obligations established for each type of aid, the general obligations are as follows:

• a) Prove that the activity has been carried out and provide the documents required by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) that justify the application of the funds received, and in particular the documentation that accredits the investment made in the activity that is the object of the aid.

• b) To place at the disposal of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) and, where appropriate, for the financial control corresponding to the Intervención General de la Administración del Estado and the Court of Auditors, the accounting books, registers and other documents audited in accordance with the applicable legislation, and to keep the documents justifying the application of the funds received which may be the subject of these actions, for a period of four years from the date on which the aid is granted.

• c) Be up to date in the fulfilment of tax obligations to the AEAT and Social Security, and not have any debts due to a decision to reimburse or reimburse prior to the issuing of the proposed decision and payment. Payment may not be made without accreditation of the beneficiary's compliance with these requirements, and non-compliance will result in the loss of the right to receive the aid.

• d) To notify the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) of the receipt of any national or international subsidies or aid that finance the subsidised activity as soon as they become known, for the purposes of verifying compliance with Community regulations on the accumulation of aid in accordance with the maximum amount permitted.

• The excess of subsidies received according to the maximum amounts foreseen in the Corporate Tax Law and in RD 1084/2015 causes the reduction of the aid in excess of said limit. The Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) will apply this reduction when, in the exercise of its powers, it ascertains that the direct aid to an audiovisual work granted by Public Administrations exceeds the maximum amount that corresponds in each case. The financial returns generated by the funds released to the beneficiaries will increase the amount of the subsidies granted, and will be applied to the subsidised project.

• e) To publicise the collaboration of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) in the implementation of the project which is the object of the aid by means of the insertion on a single poster and independently of the rest of the other collaborations in the activity, with the phrase "With the financing of the Instituto de la Cinematografía y de las Artes Audiovisuales/Ministerio de Cultura y Deporte/Government of Spain", or with the insertion of the phrase "With the financing of the" followed by the logo of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

• f) Films with majority Spanish participation must include in the opening credits the stamp "Es Cine Español", in accordance with the model appearing on the website of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

• g) Delivery of a copy of the production that is the object of the aid to the Filmoteca Española for the fulfilment of the aims of preservation and dissemination of Spanish film heritage. This delivery will be made on the conservation medium stipulated in each call for applications. The copy deposited at the Filmoteca Española in compliance with this obligation may not be withdrawn or transferred for deposit to other institutions for the fulfilment of any other deposit obligations that they may impose, and becomes part of the film collection of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

• h) In the event that the production is not classified by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), send this body a copy of the production and the credit titles in order to verify compliance with the obligations assumed by the beneficiary of the aid.

• i) Deliver to the Filmoteca Española the materials used in the promotion of the production that is the object of the aid to the media, which will be regulated in the corresponding call for applications.

Failure to comply with the obligations in paragraphs (h), (i) and (j) within the deadlines specified in each call will result in the reimbursement of 30 % of the aid received.

• j) Authorise the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) to keep in the Filmoteca Nacional the material submitted with the application for aid, which will be specified in each call for applications: script, production and direction reports or similar documentation for each production receiving aid for research purposes. This documentation is not available for consultation by researchers until two years after the qualification of the production, and in the event that the work is not qualified until 5 years after the publication in the BOE of the final decision on the granting of annual aid.

• k) To authorise the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) to make use of the materials referred to in the previous sections in its promotion, preservation, research and dissemination activities in Spanish territory, abroad and through its website when two years have elapsed since the date of release. In any case, the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) shall request authorisation from the production company, which may oppose or condition the exercise of this right when it reasonably considers that it may prejudice the exploitation of the work.

It is the responsibility of the beneficiary or production/management company of the project to comply with the aforementioned requirements for the justification of the aid granted, as well as the rest of the obligations included in the General Law on Subsidies regarding the subsidised activities that it has undertaken to carry out, without its compliance or the liability derived from it being conditioned by private agreements on the rights and obligations derived from the production with other persons holding the property rights of the feature film, with other co-producing companies or with third parties, or by its participation in the total cost of production of the subsidised feature film.

How is the reimbursement and graduation of non-compliance and repayment carried out at the initiative of the beneficiary of an Aid for the production of feature films and short films in Spain?

• The amounts received from the aid will be reimbursed and interest will be charged on late payment from the time the subsidy was received in the cases regulated and according to the procedure established in the General Law on Subsidies. The obligation to repay shall be independent in all cases of the imposition of penalties that may be required by law.

• In the event of partial non-compliance, the amount to be repaid shall be determined in accordance with the principle of proportionality, taking into account that the non-compliance is significantly close to full compliance and that the beneficiaries have acted in a way that unequivocally tends to satisfy the commitments of the aid.

• Repayment at the initiative of the beneficiary is understood to be the voluntary repayment of the amount received without prior request from the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA). In this case, the corresponding interest for late payment will be calculated in accordance with the provisions of the General Law on Subsidies from the date of payment of the aid until the actual repayment is made.

Common rules for general and selective aid for the production of feature films on project in Spain

In addition to the aforementioned general requirements for obtaining the status of beneficiary, the following requirements must be met in order to access the General and Selective Grants for the production of feature films on a project:

• To accredit the cultural character by obtaining the certificate that accredits it according to the established procedure and which is detailed in the following section.

• Be up to date with the payment of reimbursement for subsidies, which is determined in the corresponding section.

• Have in the company employed, or at least incorporated into the project, a person with a disability of a degree equal to or greater than 33 % recognised by a competent body, which will be accredited by means of a declaration of responsibility. This requirement does not apply in the case of documentary or experimental projects.

• Include in the project, as universal accessibility measures, special subtitling and audio description in accordance with the applicable technical regulations, which shall be accredited at the time of requesting the qualification of the feature film by presenting certification of compliance with this requirement issued by an approved company.

• When submitting the application for aid, the applicant must certify that the project has guaranteed a certain amount of funding for its production as a percentage of the budget established for each type of aid. For these purposes, the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) shall take into account, in addition to other amounts that may be established in each call for applications, the following:

• 1. The amount of the contracts for the advance acquisition of the exploitation rights of the project formalised by the company applying for the aid or by any of the co-producing companies with companies providing audiovisual media services or their subsidiary production companies operating in Spanish territory for exploitation in Spain.

• In the case of advance acquisition of the aforementioned rights by companies providing publicly owned audiovisual media services, the amount appearing in the acqusition decision is admissible even if the contract has not yet been formalised.

• 2. The amount of the contracts concluded by the company applying for the aid or by any of the companies co-producing the project with film distribution companies, provided that these companies have obtained a minimum takings of 1.000.000 100,000 euros for general aid and 100,000 euros for selective aid, in the financial year prior to the call for applications, for distribution in commercial cinemas in Spain.

• 3. The amount of the contracts signed by the company applying for aid or by any of the companies co-producing the project with international sales companies, as well as the amount of the contracts for the assignment or licensing of exploitation rights in the international sphere, excluding Spanish territory, with content distribution companies, online platforms and international television channels, or in both cases the pre-contracts provided that they include a specific price.

• 4. The amount of national and international public aid, provided that they have been granted. The contracts referred to in the previous sections must refer only to the feature film project for which the aid is requested.

• 5. The own resources contributed by the company applying for the aid or by any of the companies co-producing the feature film intended for the production, provided that they are guaranteed by a bank guarantee, a guarantee from a mutual guarantee company or any other guarantee established in the corresponding call for applications.

• For selective grants, where the amount of own resources does not exceed 5 % of the project budget, accreditation may be provided by means of a bank certificate. Likewise, expenses incurred prior to the submission of the application for aid that are intended for production that are audited in the manner determined in the call for proposals.

• 6. Expenditure incurred prior to the submission of the application for support and intended for production must be audited in the manner specified in the call for proposals.

• 7. Capitalisations up to 10% of the budget of the feature film for general grants, and up to 5% in the case of selective grants.

• 8. The amount of the contributions destined for the production of private investments, covered by a contract, promissory note or equivalent document in the commercial trade, up to the maximum limit of 5% of the overall budget. This limit does not apply when the contributions are justified by means of the corresponding bank transfer or discount, or when a contract is provided in which it is reliably stated that the transfer or discount has taken place prior to the start date of the filming of the production.

• 9. Other resources established in the corresponding call for proposals.

• 10. That at least 50% of the production budget declared for the purposes of recognizing its cost is carried out in Spain or reverts to authors, technical, artistic or service teams with Spanish nationality. In the case of co-productions with foreing companies, thir requirement applies to the expenses corresponding to the percentage of Spanish participation in the co-production.

• 11. Include in the project an environmental sustaninability plan as determined in each call, which will be accedited at he time of requesting recognition of the cost of the feature film. Failure to comply with the aforementioned requirements gives rise to the demand for reimbursement of the total amount of the aid received, without prejudice to the initiation of the corresponding sanctioning procedure in the terms estabilished in the General Law of Subsidies.

• General aid and selective aid for the production of project-based feature films in Spain are incompatible. Within the same budgetary year, a project can only participate in one of the two line of aid. The same project can submit the same line of aid to different selection procedures in different budget year up to a maximum of 3 selection procedeures.

• In the same budget year, a project can only participate in one of the two lines of support.

• At least 10% of the annual allocation of the Film Protection Fund is earmarked for the selective aid line for feature film productions on project.

How is the cultural character of an audiovisual production accredited?

• The granting of general and selective aid for the production of feature films on project is subject to the following conditions for projects prove their cultural character.

• The certificate attesting to the cultural character of a production is issued ex officio without the need for an express request and without any processing for specific projects benefiting from selective aid for the production of feature films on a project if it has been assessed and confirmed as such by the Advisory Committee on Aid for the Production of Feature Films.

• For general grants for the production of feature films on project the accreditation of their cultural character requires the issuing of the corresponding cultural certificate issued by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), which shall issue it if at least three of the following requirements are met:

• a) The original version of the feature film must be in any of the official languages of Spain. In the case of co-productions with foreign companies, the original version of the production may be one of the official languages of the European Union.

• b) The content of the feature film must be mainly set in Spain.

• c) The central theme is directly related to literature, music, dance, architecture, painting, sculpture or any other artistic expression.

• d) The script must be an adaptation of a pre-existing literary work.

• e) The central argument must be biographical in nature about people of historical or cultural relevance.

• f) The central plot includes mythological or legendary stories, events or characters integrated in a cultural heritage or tradition of the world.

• g) To allow for a better understanding of cultural, social, religious, ethtnic, anthropological or philosophical diversity.

• h) That the central argument is directly related to issues or topics that form part of the current social, cultural or political situation in Spain, or that have an impact on these.

• i) That the production is specifically aimed at a children's audience and contains values in line with the principles and aims set out in Spanish legislation on education and/or values in line with democracy.

• j) It is of special cultural and/or social interest for the European and/or Latin American public.

• The application for the cultural certificate is implicitly understood to be made together with the Aid that is sought.

• The head of the Directorate General of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) is responsible for issuing the cultural certificate in favour of the projects that are beneficiaries of the aid.

• The cultural certificate may be revoked if, when the production is presented for qualification, it is found that the requirements justifying its award have not been met, and implies the reimbursement of the aid received.

How is the reimbursement of aid for the production of feature films on project in Spain regulated?

• The aid may be totally or partially reimbursed when the income generated by the exploitation of the work in cinemas in Spain is three times higher than the cost recognised by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) and provided that this means a real benefit for the production company.

• In order to determine the real profit of the feature film, the amount resulting from subtracting the following expenses in the six months following the commercial release of the production from the total box-office receipts in Spain is taken into account. The commercial release of a film in Spain is considered to be the first cinema session that generates box-office revenue after the date of its qualification. The expenses are:

• a) The amounts corresponding to the Value Added Tax applied to the tickets, and the amounts relating to the settlement of legally recognised royalties.

• b) Expenses arising from the cinematographic exhibition.

• c) The costs arising from the distribution of the feature film, including the distribution commission and the minimum guaranteed distribution costs, and those relating to promotion, advertising and print runs for distribution in Spain.

• d) The participation of third parties in box-office receipts in Spain, either through financial investments or through talent bonuses.

• e) Expenses arising from the cost of production recognised by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), including script costs.

• Within a maximum period of twelve months from the date of the commercial release of the feature film in a cinema, the beneficiary of the aid must submit to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), by means of a declaration of income, using the official form available on the Institute's website, the corresponding declaration of income in accordance with the aforementioned provisions.

• Once the actual benefit has been determined, the beneficiary is obliged to reimburse in the following circumstances:

• a) If the actual benefit exceeds 250% of the amount of aid received, 25% of that amount must be repaid.

• b) If the actual benefit exceeds 350% of the amount of aid received, 50% of that amount must be repaid.

• c) If the actual benefit exceeds 500% of the amount of aid received, 100% of that amount must be repaid.

General aid for the production of feature films and short films on project in Spain

General aid for the production of feature films in Spain, regulated by Law 55/2007, the Cinema Law, is intended to finance the production costs of projects that, in addition to meeting the general requirements established in the aforementioned law, meet the following specific requirements:

• The minimum cost of a feature film recognised by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) should be 1.300.000 euros, with the following exceptions.

• a) For feature-length documentary films, the minimum cost must be 300,000 euros.

• b) For international co-productions with countries of the European Union and member countries of the Council of Europe, the minimum cost must be 300,000 euros.

• c) For international co-productions with Ibero-American countries and one or more third countries whose joint participation is a minority, the minimum cost must be 150,000 euros.

• d) For all other international co-productions, the minimum cost must be 700,000 euros.

• When submitting the grant application, proof must be provided that the project has guaranteed funding of at least 35% of the budget foreseen for the production of the feature film.

Who can be beneficiaries of a General Aid for the production of feature films on a project in Spain?

These General Grants are available for the production of feature films on a project in Spain:

• a) Independent production companies, including economic interest groupings as defined in Law 55/2007, the Cinema Act.

• b) non-independent production companies, including economic interest groupings, to be produced in co-production with independent production companies.

How is the call for applications made and what is the amount of the General Grants for the production of feature films on a project in Spain?

• The call for applications for General Grants for the production of feature films in Spain is multiannual in nature and may be made in the form of an open call, with a maximum of three selection procedures per year. The call will establish for each procedure the maximum amount that can be granted, the deadline for submitting applications and the maximum deadline for resolution.

• Within the annual credit earmarked for General Grants for the production of feature films on project in Spain, a maximum of 35% is reserved for projects made exclusively by female directors, and a minimum of 8% for animation projects, in both cases provided that the minimum score established in each call is reached. The part of the credit that is not used up is transferred to the general line.

• Each call for proposals establishes the maximum amount of aid per project, which, without exceeding the amount of the annual appropriation, shall be a maximum of 1.400.000 and provided that this amount does not exceed 40% of the cost of the feature film recognised by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

• This percentage may be increased to 60% of the recognised cost for projects that qualify as difficult audiovisual works according to the definition established in Law 27/2014, on Corporate Tax, or are included in the list of works stipulated in said Law in terms of maximum amounts of Aid.

How are projects assessed in order to obtain General Aid for the production of feature films on a project in Spain?

The evaluation of each project is carried out by the managing body according to the following objective criteria with the maximum relative score indicated in each case according to the scale that will be established in detail in each call for proposals.

• a) Cultural relevance and authorship of the project: Up to 10 points. Based on:

• 1. Original version, which includes the Spanish sign languages recognised in Spain as being for deaf people.

• 2. Original script or adaptation of a literary work in one of the co-official languages of Spain.

• 3. Track record of the director of the project: Participation in festivals is taken into account, as well as any prizes won; the results obtained at the box office for previous projects; and the condition of being a new filmmaker.

• b) The solvency of the production company, or of the production-management company applying for aid, up to 18 points.

• c) Economic and financial viability of the project: Up to 41 points. It is based on:

• 1. Contracts signed with a film distribution company in Spain. Special attention is paid to independent distribution.

• 2. Contracts signed with an international sales company. Special attention is paid to contracts with companies that have feature film titles in the co-official languages of the Spanish state in the dialogue, or alternatively in the sum total of the amounts of contracts for the transfer or licensing of exploitation rights in the international sphere with distribution companies, with on-line platforms and with international television channels.

• 3. Sum of contracts with audiovisual media service providers for exploitation in Spain, or with their affiliated production companies operating in Spain.

• 4. They must be international co-productions with Spanish technical-artistic participation.

• 5. They must be independent production companies with 100% ownership of the work.

• 6. National or international public aid obtained by the project.

• d) The socio-economic and investment impact on Spain and innovation: Up to 31 points. Based on:

• 1. The status of a documentary or animated film.

• 2. The budget of the feature film and the expenditure made or incurred in Spain.

• 3. The promotion of gender equality through the participation of women in the project has a reserve of 8 points, which is the maximum score. In order to obtain points for the presence of women in each of the positions detailed in each call for proposals, the participation must be exclusively female, except in the case of scriptwriters, where male co-participation is allowed if all the co-participants have the same level of responsibility, which must be reflected in the credits.

• 4. The incorporation of trainees and traineeship holders, as well as trainees and trainees.

• 5. Other criteria with socio-economic impact established in each call, such as the elaboration and implementation of equality plans when they are not compulsory for the company, having obtained a business label in the field of equality or having an environmental certification.

• Solvency is assessed according to the number of spectators, volume of national and international sales and the participation and winning of prizes at festivals and film competitions established in each call for applications obtained by a feature film of Spanish nationality produced by the companies applying for aid under the following conditions:

• 1. The company applying for the grant, either on its own or together with the companies involved in the start of the shooting of the chosen feature film.

• 2. If the applicant company is an economic interest grouping, the solvency refers only to a single independent production company that is not also an economic interest grouping and that at the time of the Aid is the managing director of the grouping or is the majority shareholder, with the requirements established in each call for applications regarding ownership and minimum expenditure incurred on the feature film for which the Aid is requested.

• 3. The feature film is chosen by the applicant company, which may opt for a single feature film or for a different feature film for each assessment criterion.

The chosen feature film must have been released as the first option for exploitation in cinemas in Spain in the six years prior to the call for applications, adding, where applicable, until the aid is called, or it must have participated in festivals and competitions in that period. In the case of an application for aid for an animation project, the deadline is twelve years. These deadlines may be subject to exceptions as indicated in each call for applications.

The participation of the company applying for aid, alone or together with its related companies, in the production of the chosen feature film may:

• Be at least 15% owner of the work at the time of obtaining the nationality certificate.

• Have executed at least 5% of the budget if the chosen feature film has received general project aid.

• To have been a partner with a major shareholding if the chosen feature film was majority produced by an economic interest grouping, or to have had the management of the economic interest grouping, in both cases at the date of commencement of filming.

How is the individual amount of each General Aid for the production of feature films on a project in Spain determined?

According to the budget availability the individual amount of each Aid will be determined according to the following rules:

• a) Each project is assigned a total score resulting from the sum of the scores obtained in each of the aforementioned assessment criteria.

• b) Only projects that have obtained at least the total score established in each call for proposals, which may not be less than 60 points, are eligible.

• c) Grants are distributed according to the following scores:

• 1. Those who score between 100 and 75 points receive 100% of the aid requested.

• 2. Those scoring less than 75 points up to 65 points receive 85% of the aid requested.

• 3. Those who score less than 65 points up to 60 points receive 75% of the aid requested.

• d) Projects are ranked according to the total score obtained by them.

• e) In the event of a tie in the score between several projects and the available funding is not sufficient to cover all of them, the tie will be broken by the score obtained by the projects in the established order of evaluation.

• The maximum time limit the deadline for issuing and notifying decisions in selection procedures is 4 months from the day following the day on which the extract from the call for applications is published, unless this deadline is postponed in the call for applications.

• Production companies may introduce modifications if they do not entail a reduction of more than 305% of the budget for which the aid was obtained, including copy costs, advertising, promotion, passive interest and costs of negotiating loans with financial entities, always complying with the specific requirements contained in the rules common to general and selective aid and in general aid. Modifications entailing a reduction of more than 30% of the budget will entail the total repayment of the aid.

• The payment of aid 70% is paid in the financial year in which the grant is awarded and the remaining 30% in the financial year following that of the corresponding call for applications, provided that at least 80% of the financing of the project has been accredited and at least 50% of the costs of the script have been paid, excluding amounts that are not directly related to the preparation of the script, such as bonuses for achieving certain objectives, in accordance with the provisions established in each call for applications.

What are the obligations of the beneficiary company in order to obtain General Aid for the production of feature films on a project in Spain?

In addition to the general obligations established in the Grants for the production of feature and short films, the beneficiary company has the following specific obligations:

• Start shooting and notify the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) or the competent regional body within 6 months of the date of the first payment of the aid, or within 9 months in the case of animated feature films, documentaries or international co-productions.

• Notify the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) or the competent regional body of the completion of filming and apply for the qualification and certificate of nationality within a maximum period of 18 months, or 36 months in the case of animated feature films, documentaries or international co-productions, from the start of filming.

• For animated films, the start of filming is considered to be the date on which the movement is incorporated into the drawings, and the end of filming is considered to be the date on which filming is completed, which must in any case be prior to the mixing and editing process. These circumstances must be documented.

• Proof of the cost of the film in accordance with the provisions of Order ECD/2784/2015 within a maximum period of 8 months from the notification to the production company of the certificate of Spanish nationality of the feature film.

• Undertake to maintain ownership of the film rights for a period of three years from the date of qualification by means of a responsible declaration.

• Submit to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) the list of income generated by the exploitation of the feature film in accordance with the provisions of the common rules for general and selective aid for the production of feature films on project.

• Proof, when applying for qualification, that the feature film for which aid is requested includes special subtitling and audio description in accordance with the applicable technical regulations, justifying these requirements by means of a certificate issued by an approved company.

• Proof of having paid at least 50% of the price of the script before receiving payment, excluding amounts that are not directly related to the production of the script, such as bonuses for achieving certain objectives. Except in cases where the same person acts as scriptwriter and individual producer/entrepreneur, contracts in which the partial or total payment of the script is waived are not accepted.

• To allocate at least 8% of the declared budget of the work for copies, advertising and promotion for the release of the feature film in cinemas in Spain, regardless of whether the expenditure has been borne by the production company or by the distribution company, after deducting the costs of copies, advertising, promotion, passive interest and the costs of negotiating loans with financial institutions.

• This percentage is reduced to 5% in proportion to the aid received by the project as established in each call for proposals. The obligation is understood to be fulfilled when the expenditure is equal to or greater than 300,000 euros.

• Release the feature film within 12 months of notification of the nationality certificate, and must take place at least, but not necessarily simultaneously in the number of cinemas, either in multiplexes or single-screen cinemas, as indicated below:

• 1. Feature films with an acknowledged cost of more than 2.000.000 of euros: 60 premises.

• 2. Feature films with a recognised cost of less than or equal to 2.000.000 of euros: 40 premises.

• 3. Feature films with original version in co-official languages other than Spanish: 15 venues. The feature film must be screened in its original version in at least 8 venues.

• 4. Documentary feature films: 5 local.

• Proof when applying for cost recognition that the feature film includes an environmental sustainability plan as determined in each call for proposals.

• Provide proof of 80% of the financing of the project during the calendar year following the year in which the aid is granted.

• Failure to comply with the obligations outlined above will result in the total reimbursement of the aid, with the exception of the obligations regarding the destination of expenditure and the deadline for the release of the feature film and the number of screening venues, which may be subject to partial non-compliance in accordance with the provisions on reimbursement and graduation of non-compliance.

Selective grants for the production of feature films on project in Spain

The Selective Grants for the production of feature films on project in Spain, regulated in Law 55/2007, the Cinema Law, aimed at independent production companies, are intended to finance projects with a special cinematographic, cultural or social value, documentary projects, projects that incorporate new directors and directors and experimental projects, with the particularities indicated below.

What requirements must be fulfilled in order to obtain a Selective Grant for the production of feature films on a project in Spain?

Projects applying for Selective Grants must meet the following specific requirements in addition to those set out in the general rules, with the exception of projects of an experimental nature:

• When the application for aid is submitted, the project must prove that at least 15% of the budget foreseen for the production of the feature film is financially guaranteed, or at least 70% in the cases established by each call for applications. In order to verify the financing, the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) takes into account, in addition to the amounts established in each call for applications, those established in the common rules for general and selective aid.

• When the application for aid is submitted, the project must have a minimum score of 25 points in general, 20 points in the case of documentary projects or 17 points in the case of co-productions with foreign companies in which the Spanish production company has a minority participation. The score is awarded according to the following scale with a maximum score of 50 points, a detailed breakdown of which is given in each call for proposals:

• 1. Cultural character of the project: up to 3 points. It is based on the language of the original version, including the Spanish sign languages recognised in Spain as being specific to deaf people.

• 2. Trajectory of the director of the project: Up to 5 points. Based on participation in festivals and/or awards won.

• 3. Solvency of the company applying for aid: Up to 8 points. This is based on experience in previous years or on participation in festivals and winning awards.

• 4. Economic and financial viability of the project: Up to 10 points. This is based on contracts signed with film distribution companies in Spain; contracts signed with audiovisual media service providers operating in Spain for exploitation in Spain; contracts signed with international sales companies; contracts for the assignment or licensing of exploitation rights for the international sphere with distribution companies, on-line platforms and international television channels; and national public aid and aid from international programmes that have been obtained.

• 5. Socio-economic impact and impact of the investment made in Spain and innovation: Up to 24 points. This is based on the expenditure made in Spain; the fact that it is an international co-production with Spanish technical-artistic participation; the inclusion of people with internship or training contracts and scholarship holders or internship students; the fact that it is an animated film; and the fact that it is a feature film by a new director.

• The promotion of gender equality is also included for the participation of women in the project, with a maximum of 7 points. In order to obtain the score in each of the positions detailed in each call for proposals for the participation of women, it is necessary that the participation is exclusively female.