GRANTS TO THE SPAIN FILM INDUSTRY: GENERAL AND SELECTIVE GRANTS FOR FEATURE FILMS & SHORT FILMS

GRANTS TO THE SPAIN FILM INDUSTRY: GENERAL AND SELECTIVE GRANTS FOR FEATURE FILMS & SHORT FILMS

COMMON RULES ON GENERAL AND SELECTIVE AID FOR THE PRODUCTION OF FEATURE FILMS ON PROJECTS 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 accrediting it according to the established procedure 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 acquisition decision is admissible even if the contract has not yet been formalised.

• 2. The amount of the contracts concluded by the undertaking or film production company which applies for the aid or by any of the companies co-producing the project with film distribution companies, provided that these companies have raised a minimum 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 the 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 transfer 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 provided 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, guarantee from a mutual guarantee company or other guarantee established in the corresponding call for applications. In the case of selective aid 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 purpose of recognising its cost is made in Spain or reverts to authors, technical, artistic or service teams with Spanis nationality. Int he case of co-productions with foreing companies, this requirement applies to the expenses corresponding to the percentage of Spanish participation in the co-production.

• 11. Include in the project an environmental sustainability plan as determined in each call for applications, to be accredited at the time of requesting recognition of the cost of the feature film. Failure to comply with the aforementioned requirements will give rise to the demand for reimbursement of the total amount of the aid received, without prejudice to the initiation of the corresponding sanctioning procedure under the terms established in the General Law on Subsidies. 

• General aid and selective aid for the production of feature films on projects in Spain are incompatible. Within the same budget year, a project may only participate in one of the two lines of aid. The same project may be submitted to different selection procedures for the same line of aid in different budget years, up to a maximum of 3 selection procedures. 

• 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 projectsprove their cultural character.

• Thecertificate attesting to the cultural characterOf a production is issued ex officiowithout the need for an express request and without any processing for specificProjects 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 requiresThe 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) that it allows a better understanding of cultural, social, religious, ethnic, 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 cinemas, 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 AND SHORT FILMS ON PROJECTS 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) Film production companies non-independent, 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 euros, provided that this amount does not exceed 40% of the recognised cost of the feature film 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.

• Themaximum time limitThe deadline for issuing and notifying decisions on selection procedures is 4 months from the day following publication of the extract of the call for proposals, unless this deadline is postponed in the call for proposals. 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 copying costs, advertising, promotion, passive interest and costs of negotiating loans with financial institutions, 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.

• Thepayment of aid70% 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. In the case of 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 to 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 AID FOR THE PRODUCTION OF FEATURE FILMS ON PROJECTS 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 trainees or trainee students; the fact that it is an animated film; and the fact that it is a feature film by a new director. Also included is the promotion of gender equality through 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, except in the case of screenwriters, where male co-participation is allowed as long as all the co-participants have the same level of responsibility, which must be reflected in the credits.

• 6. Companies with registered offices in the Canary Islands also obtain an extra score of 2 points, without the maximum score of 50 points being exceeded in any case.

• Experimental projects are not subject to the above. The access requirements are as follows:

• 1. The maximum project budget must be 300,000 euros and the minimum 80,000 euros.

• 2. The company applying for aid must demonstrate experience in the field of film production by having produced in the previous six years, or 12 years in the case of documentary and animated films, at least two short films or one feature film, both of which have been rated, or by having produced a television series or film. When the application is made by an economic interest grouping, the requirement refers to only one of the independent production companies which is not itself an economic interest grouping and which, when applying for aid, is the management of the grouping or is the majority partner with the largest shareholding, and with the requirements regarding ownership and minimum expenditure incurred on the feature film provided for solvency established in each call for applications.

• 3. The company must undertake to spend or pass on in Spain at least 50% of the budget declared as recognition of the cost of production.

• 4. Each call determines the criteria for a project to be considered as experimental.

What is the amount of Selective Assistance granted for the production of feature films on a project in Spain?

The following reserves are made within the annual appropriation earmarked for this line in the call for proposals:

• a) A minimum of 35% is earmarked for projects that have been carried out exclusively by women directors.

• b) A minimum of 10% and a maximum of 25% is earmarked for documentary projects.

• c) A minimum of 8% is earmarked for animation projects.

• d) A maximum of 10% may be earmarked for experimental projects.

• e) A maximum of 5% may be earmarked for co-productions with foreign companies in which the participation of the Spanish production company/s is/are a minority.

• These reserves are carried out if the projects reach the minimum score established in each call, and the part of the credit reserves that is not used up in each call is transferred to the general line.

• Each call for proposals establishes the maximum amount of aid per project, which within the annual appropriation allocated to this line may reach a maximum of 800,000 euros, or of 1.000.000 of euros in the case of animation projects. This percentage may be increased up to 705 of the recognised production cost as established in each call for projects that are considered difficult audiovisual works according to the definition established in RD 1084/2015, or are included in the list of works established by Law 27/2014, Law on Corporate Tax, on maximum aid intensities.

• In the case of experimental projects, the maximum amount of aid per project may reach the percentage of the production cost recognised by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) corresponding to the maximum intensity applicable according to RD 1084/2015 and Law 27/2014.

What are the conditions of the call for applications and the assessment of projects for the Selective Grants for the production of feature films on project in Spain?

• The call for applications for Selective Grants for the production of feature films in Spain is an open call with a maximum of three selection procedures per year. Each call establishes for each procedure the maximum amount to be granted, the deadline for submitting applications, the necessary documentation to be provided and the maximum deadline for resolution.

• The projects are evaluated by the Feature and Short Film Production Support Committee. They are assessed on a maximum score of 50 points, except in the case of experimental projects, according to the following scales and terms:

• 1. Up to a maximum of 45 points according to the quality, artistic value and level of development of the project, specifically assessing the relevance and originality of the project, the quality of the script and dialogues, the treatment of the characters, the structure, the author and technical team of the project. For documentaries, the relevance and originality, the research carried out, the structure, the level of development, the maturity of the project, and the project's author and technical team are taken into account. In co-productions with foreign companies in which Spanish participation is a minority, special consideration is given to the track record and solvency of the majority foreign co-producing companies and the foreign technical-artistic team.

• 2. Up to a maximum of 5 points depending on the adequacy of the budget presented by the project. Only projects that obtain a minimum of 5 points will be eligible for support.

• Each project is assigned a total score which is the result of adding the score obtained in the pre-assessment of access according to the scale established in the requirements together with the score obtained by the Commission's assessment. A ranking of projects is established according to the total score obtained, which is used to distribute the aid within the limit of the budget allocation established in each call for applications.

• Experimental projects are assessed by the Feature and Short Film Production Grants Committee on a maximum score of 74 points, evaluating the following aspects and taking into account the terms established in each call for applications: Quality and artistic value of the project, especially its relevance, originality and use of expressive resources that are novel and radical, up to 70 points; and the appropriateness of the budget for the project, up to 4 points.

• Each experimental project is assigned a score that is the result of adding, in addition to the score obtained by the Commission's assessment, the following objective scores that are checked by the examining body according to the detailed breakdown established in each call for proposals:

• a) Up to 10 points for the financing of the project. It is based on the the provision and contribution by the company of its own financial resources and/or private investment, and in obtaining other public aid for the project.

• b) Up to 8 points according to the solvency of the production company. This is based on the experience of the production company and/or the director of the project in previous years, and the participation in festivals and awards obtained.

• c) Up to 8 points for the participation of women in the project. It is necessary that the participation be exclusively female in each of the positions detailed in the call for proposals, except for scriptwriters where there may be male co-participation if they have the same level of responsibility, which must be reflected in the credits.

• d) Companies with registered offices in the Canary Islands obtain an extra score of 2 points, without the maximum of 100 points being exceeded after adding the scores obtained by the Commission's assessment according to the objective scores indicated above.

• Only projects that obtain the minimum score established by each call for proposals, which in any case cannot be less than 50 points, may obtain the grants.

How is the aid received by projects under the Selective Grants for the production of feature films on project in Spain paid?

• A single payment is made when the decision on the granting of the Aid has been notified, and in cases where a definitive project must be approved following accreditation of its viability by resolution of the Directorate General of the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

• Before payment is approved, proof must be provided of compliance with the obligation to be up to date with payment of at least 33% of the script, and in the appropriate cases that a guarantee or surety has been provided in accordance with the provisions of each call for proposals, depending on the own resources provided.

What are the obligations of the beneficiary company of a Selective Aid for the production of feature films on a project in Spain?

In addition to the general obligations set out above, the beneficiary undertaking has the following specific obligations:

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

• 2. 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 within 36 months in the case of animated feature films, documentaries or international co-productions, from the date on which filming commenced. For animated films, the start of filming is considered to be the date on which the drawings are incorporated, 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, and these circumstances must be accredited with documentary evidence.

• 3. Accreditation of the cost of the feature film in accordance with the provisions of Order ECD/2784/2015 within a maximum period of 8 months from the date on which the production company is notified of the certificate of Spanish nationality. For experimental projects, the accreditation is carried out in accordance with the provisions for short films in the aforementioned Order within a maximum period of 3 months.

• 4. Undertake by responsible declaration to maintain ownership of the rights to the feature film for three years from the date of its qualification.

• 5. Submit to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) the list of operating income generated by the film.

• 6. Prove at the time of applying for the qualification that the feature film to be supported includes special subtitling and audio description in accordance with the technical regulations to be applied, having to justify this obligation by presenting a certificate issued by an approved company.

• 7. Proof of effective compliance with the obligation to be up to date with payment of at least 33% of the cost of the script before payment is made. Except in cases where the same person performs the functions of scriptwriter and producer or individual production company, contracts exempting partial or total payment of the script will not be accepted.

• 8. Except for projects of an experimental nature, at least 5% of the budget declared by the feature film as recognition of cost, after deducting the costs of copies, advertising and promotion, passive interest and the costs of negotiating loans with financial institutions, must be allocated to copies, advertising and promotion for the release of the feature film in cinemas in Spain, regardless of whether this expenditure is borne by the production company or the distributor. The percentage is reduced to the minimum limit of 4% in proportion to the aid received by the project according to the formula established in each call for proposals. This obligation is understood to be fulfilled when the aforementioned expenditure is equal to or greater than 150,000 euros.

• 9. Except for experimental projects, there is an obligation to release the feature film in at least 20 screening venues, whether film complexes or single-screen cinemas, without the need for simultaneous release, and within a maximum period of 12 months from the date of notification of the certificate of nationality. The number of venues is reduced to 5 in the case of documentaries, and to 7 venues in the case of feature films with an original version in co-official languages other than Spanish. In this case, they must be screened in their original version in at least 5 venues.