Spain Film Tax Rebate 2026: Definitive Guide to Article 36.2 LIS for International Productions

Spain Film Tax Rebate 2026: Article 36.2 LIS Guide for Foreign Productions

Article 36.2 of Law 27/2014 on Corporation Tax (LIS) regulates tax incentives for foreign film and audiovisual productions shot in Spain. This is the so-called "Spain Tax Rebate" for international productions filming entirely or partially in Spanish territory through a Spanish production services company registered with the ICAA (Institute of Cinematography and Audiovisual Arts).

As of the date of this article's update (December 2026), the basic regulation of Article 36.2 LIS and its implementing regulations correspond to the information published by the Spanish Tax Agency (Agencia Tributaria) and the Corporation Tax Regulations for the 2024–2026 fiscal years, including changes introduced by Law 38/2022 effective from January 1, 2023. You can verify this in the updated AEAT manuals on Article 36.2 LIS, which include the 30%/25% rates, the €20M cap, and the minimum spend of €1,000,000 (€200,000 for animation) for foreign productions in Spain [AEAT Practical Manual – Article 36.2 LIS](https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos.html).

In this guide, we explain how the Tax Rebate under Article 36.2 LIS works in practice: deduction base (eligible expenses), rates (30%/25% under the general regime) and enhanced or specific rates in the Canary Islands, the Basque Country, and Navarre, maximum caps, requirements (cultural certificates, credit mentions, documentation), as well as the role of investors/financiers. For a broader overview of the national framework (Articles 36.1 + 36.2 and 39.7 LIS), you can also review our blog articles: Spain Film Tax Rebate (Article 39.7 LIS) and Film Tax Incentives in Spain (Tax Credit and Tax Rebate).

If you are considering filming in Spain and need comprehensive support, visit our service categories: Film Production Company, Film Production Company in the Canary Islands, filming and production services, post-production, and contact. If you are interested in entering a project from the legal-tax structuring phase, also review our page on film co-production in Spain.

1. General Framework of the Tax Rebate for Foreign Productions (Article 36.2 LIS)

Article 36.2 LIS grants producers registered in the ICAA Administrative Registry of Film and Audiovisual Companies the right to apply a tax deduction for expenses incurred in Spain when they are in charge of executing foreign productions of feature films and other audiovisual works that result in physical support prior to industrial exploitation.

In practice:

• A foreign production company contracts a Spanish executive production or production services company.
• This Spanish company assumes the expenses in Spain (filming, technical services, local personnel, post-production, etc.).
• In return, it generates the tax deduction under Article 36.2 LIS and can use it directly or channel it to investors/financiers, according to the financing scheme designed and the regulations of Articles 36 and 39 LIS.

For a complementary view of the co-production regime, you can also review our page on film co-production in Spain, where we analyze how to structure projects with national and international partners.

2. Deduction Base: Eligible Expenses in Spain

The tax deduction base ("Tax Rebate") under Article 36.2 LIS consists of expenses directly related to production and incurred in Spanish territory, specifically:

• Creative personnel expenses, provided they have tax residence in Spain or in a European Economic Area (EEA) member state.
• Expenses derived from the use of technical industries and other suppliers involved in the production.

This definition of the deduction base matches what is set out in Article 36.2 LIS and developed in Article 45 of the Corporation Tax Regulations, as well as in the updated AEAT manuals on corporation tax through the 2024–2025 fiscal year [Spanish Tax Agency – IS Manual Article 36.2 LIS](https://sede.agenciatributaria.gob.es).

Expenses that are excluded from the deduction base include those that:

• Are not generated in Spain (for example, international transport of materials or equipment).
• Are primarily administrative or financial in nature (legal or labor advisory fees not linked to filming, interest, financial commissions, general company structure, etc.).
• Certain asset depreciation when it involves investments made abroad linked to the series or feature film.

In summary, the incentive focuses on rewarding actual filming and executive production expenses incurred in Spain, excluding administrative structure and international costs unrelated to Spanish territory, in line with the criteria of the Directorate General of Taxation and European regulations on film aid.

3. Rates and Limits of the National Deduction (30% / 25%)

The current wording of Article 36.2 LIS (amended by Law 38/2022, effective for periods beginning on or after January 1, 2023) maintains, as of December 2026, the following parameters, confirmed in the AEAT Income and Corporation Tax manuals for 2024 [Spanish Tax Agency – Article 36.2 LIS](https://sede.agenciatributaria.gob.es):

a) Foreign film and audiovisual series productions (general regime Spain)

• 30% deduction on the first million euros of the deduction base.
• 25% deduction on the excess base exceeding the first million euros.
• The deduction applies when expenses in Spanish territory reach at least €1,000,000, except for animation productions, where the minimum required is €200,000.
• The maximum amount of the deduction is €20,000,000 per production. For audiovisual series, the deduction is calculated per episode, with a limit of €10,000,000 per episode.
• The sum of this deduction and other aid received by the taxpayer may not exceed 50% of the production cost.

b) Productions where the producer only executes visual effects (VFX)

Article 36.2 LIS itself provides for a specific case for productions where the Spanish producer only executes visual effects (without assuming the rest of filming or production):

• The deduction is 30% of the deduction base.
• It applies when the producer is limited to executing visual effects and the expenses incurred in Spain do not reach one million euros.
• The maximum amount of this deduction is determined by Regulation (EU) 1407/2013, relating to de minimis aid (currently €200,000 during any three-fiscal-year period).
• This deduction does not count toward the joint deduction limit of Article 39.1 LIS, as confirmed by the AEAT in its Corporation Tax manual.

4. Requirements to Apply the Tax Rebate for Foreign Productions

To obtain the tax deduction for executing a foreign film production in Spain, the following requirements must be met, among others, which remain in force in 2026 according to the AEAT [Deductions for foreign film productions](https://sede.agenciatributaria.gob.es):

• Spanish production company registered with ICAA: the company must be registered in the ICAA Administrative Registry of Film and Audiovisual Companies.
• Cultural certificate (except in the specific VFX case detailed below).
• Credit mentions in the work, with express reference to the tax incentive and to the administrations/Film Commissions that participated.
• Authorization for use of materials and promotion by the rights holder of the work.
• Documentary justification of expenses incurred in Spain (invoices, contracts, payrolls, etc.).

Cultural Certificate

The production must obtain a certificate accrediting its cultural character, either through its content or its connection to Spanish or European cultural reality. This certificate is issued by the ICAA or the competent regional body, under the terms set out in film regulations and updated guides from the Institute of Cinematography and Audiovisual Arts.

Exception: this requirement is not required for the deduction provided in letter b) of Article 36.2 LIS (case of exclusive execution of visual effects).

Mandatory credit mentions

• The final credits must include an express reference that the work has benefited from the tax incentive provided in the Corporation Tax Law.
• The collaboration of the Government of Spain, the Autonomous Communities, and the Film Commissions or Film Offices that participated in filming or production processes carried out in Spain must be mentioned, as well as the specific filming locations in Spain and, in animation works, the studio in charge of production.

Authorization for use of materials and promotion

• The rights holders of the work must authorize the use of the title and graphic and audiovisual press material, expressly including the specific filming or production locations carried out in Spain.
• They must also allow the creation of promotional activities and materials for the work, both in Spain and abroad, by competent public entities and involved Film Commissions.

5. Certificate Accrediting the Cultural Character of an Audiovisual Work

The ICAA grants the cultural certificate when at least two of the requirements set out in current regulations (which remain stable as of December 2026) are met:

• That the original version of the work uses any of the co-official languages of Spain. In the case of co-productions with foreign companies, the original version may be in any of the official languages of the European Union.
• That the work is primarily set in Spain.
• That the content relates to literature, music, dance, architecture, painting, sculpture, or some other artistic manifestation.
• That the script is an adaptation of a pre-existing literary work.
• That the content has a biographical character or includes historical events or characters, without prejudice to creative adaptations inherent to cinematic language.
• That it includes mythological or legendary stories, events, or characters integrated into some cultural heritage or tradition of the world.
• That it contributes to better knowledge of cultural, social, religious, ethnic, philosophical, or anthropological diversity.
• That it addresses issues or themes linked to Spanish social, cultural, or political reality, or that have some impact on it.
• That one of the protagonists, or several secondary characters, maintain a direct connection to Spanish social, cultural, or political reality.
• That the work is specifically aimed at children or young audiences and conveys values consistent with the principles and purposes of current educational regulations.

6. Special Regimes: Canary Islands, Basque Country, and Navarre

In addition to the general national regime, Spain has special tax regimes that are highly competitive for audiovisual production, particularly:

• Canary Islands (Economic and Fiscal Regime – REF, with enhanced rates and higher caps).
• Basque Country (Provincial Corporation Tax Regulations of Álava, Bizkaia, and Gipuzkoa).
• Navarre (Own provincial regulations, with specific deductions and territorial spending requirements).

The following information is based on current national and provincial regulations and the main binding consultations published by the Directorate General of Taxation through August 2024, as well as regional updates published through the end of 2025, with no changes as of the date of writing (December 2026) that substantially alter the basic rates and limits set out here. We recommend in any case a case-by-case review with updated regional regulations before finalizing the financial structure.

7. Tax Incentives for Foreign Productions in the Canary Islands (Tax Rebate)

For international productions, production companies with tax residence in the Canary Islands acting as production services companies (i.e., in charge of executing a foreign audiovisual production in the Canary Islands) can apply an enhanced tax deduction ("Tax Rebate") compared to the general regime of Article 36.2 LIS:

• 50% of production expenses incurred in the Canary Islands up to €1,000,000.
• 45% on the remaining expenses exceeding that first million.

With the following maximum caps (in force in 2026 according to Law 19/1994 and its amendments):

• €36,000,000 per audiovisual work.
• €18,000,000 per episode, for audiovisual series.
• Expenses forming the deduction base may not exceed 80% of the total production cost.

Therefore, the maximum deduction base can reach approximately €79,800,000, in line with the spending territorialization limits set by the European Commission.

Increase up to 54%: intensity criteria

The rate can reach 54% deduction if certain "aid intensity criteria" are met, including:

• Minimum spend in the Canary Islands exceeding €1.8 million.
• Obtaining the Spanish nationality certificate and the cultural certificate, for Spanish productions.
• For Spanish productions, also obtaining the Canary Islands Audiovisual Production Certificate.
• That total aid does not exceed the State aid intensity limit applicable to the type of work and budget.
• Compliance with minimum investment requirements:
  • Minimum overall production budget equal to or exceeding €2 million.
  • Eligible expenses in the Canary Islands of at least €1 million for live-action activities.
  • €200,000 for animation works.

The deduction base consists of the production cost generated in the Canary Islands. For an expense to be deductible, it must be actually incurred in the Canary Islands and be directly linked to filming or production (pre-production, filming, post-production).

Eligible expenses in the Canary Islands

According to the AEAT's interpretation (binding resolutions such as V1746-15 and subsequent ones), eligible expenses include, among others:

• Creative personnel, with a maximum of €50,000 per person.
• Technical industries and other suppliers linked to filming.
• Wardrobe and characterization.
• Special effects.
• Cameras, lighting, and sound (personnel and equipment).
• Main technical crew and secondary technical crew.
• Complementary personnel.
• Catering and accommodation for the crew during filming.
• Domestic transport in Spain.
• Liability insurance.
• Rental of locations and spaces linked to production.
• Rental of animals, weapons, and ambulances, when applicable.
• Furniture and equipment from the art department, copies and prints.
• Other operational expenses related to filming.

Not part of the deduction base in the Canary Islands include, among others:

• Expenses of a primarily administrative nature.
• Expenses that are not generated in Spain (e.g., international transport).
• Legal and labor advisory fees not directly linked to filming.
• Certain international marketing costs and asset depreciation acquired abroad linked to the series.

In summary, the Canary Islands incentive focuses on rewarding actual filming and executive production expenses in the Canary Islands, excluding administrative structure and international costs unrelated to Spanish territory. If you are considering an international production based in the Canary Islands, you can also review our page on film production company in the Canary Islands and our filming and production services.

8. Tax Incentives for Foreign Productions in the Basque Country (Tax Rebate)

In the Basque Country, foreign audiovisual productions access a specific tax deduction through the Provincial Corporation Tax Regulations of each historical territory (Álava, Bizkaia, and Gipuzkoa). The basic condition is to work with a production or co-production company established in one of these three territories, which effectively assumes the expense and applies the deduction in its corporation tax.

Bizkaia: deduction up to 60% (70% in Basque language)

In Bizkaia, the tax deduction can reach 60%, varying according to the percentage of expenses incurred in Bizkaia (according to provincial regulations in force in 2026):

• 60% deduction if more than 50% of expenses are incurred in Bizkaia.
• 50% if expenses in Bizkaia are between 35% and 50%.
• 40% if expenses in Bizkaia are between 20% and 35%.
• 35% in other cases.

In all the above cases, the deduction is increased by 10 points if the work is filmed entirely in Basque, potentially reaching a maximum of 70%.

Álava and Gipuzkoa: general rate between 50% and 60%

In Álava and Gipuzkoa, the general rate is between 50% and 60% deduction, with an additional increase of 10 points if the work is in Basque. These rates and the deduction structure are maintained, with minor technical updates, in the IS Provincial Regulations in force through the 2025–2026 fiscal year.

The maximum deduction caps in these territories are, generally:

• €10,000,000 per feature film.
• €3,000,000 per chapter for series, with a maximum of €30,000,000 per season.
• The maximum amount that can be deducted per production is €5,000,000 per taxpayer (subject to specific adjustments in provincial regulations).
• In co-productions, each producer applies the deduction according to their participation percentage in the project.

Deduction base in the Basque Country

The deduction base consists, in similar terms to the general regime, of:

• Production cost of the audiovisual work in the territory:
  • Fees and payrolls of artistic and technical personnel.
  • Construction and rental of sets, studios, and locations.
  • Rental of camera, lighting, grip, and sound equipment.
  • Post-production, visual effects, editing, color grading services, etc.
  • Wardrobe, makeup, and hairstyling expenses.
  • Travel, accommodation, and catering for the crew in the territory.
  • Auxiliary services (local transport, security, cleaning, production insurance, etc.).
• Expenses for obtaining copies and exhibition materials, when assumed by the producer generating the deduction.
• Advertising and promotion expenses borne by the producer, with a percentage limit on production cost.

Excluded:

• Financial expenses (interest, financial commissions, etc.).
• General or structural expenses of the company not clearly allocated to the project.
• Certain distribution and international marketing expenses not assumed by the producer generating the deduction or carried out outside the framework of the work.

In Bizkaia, the regulation also clarifies that it is not a monetized "Tax Rebate", but rather a tax credit deduction: the base is the cost of the work, but the benefit is realized via direct deduction or via assignment to financiers, similar to the financing schemes provided in the national framework of Article 39.7 LIS.

Cultural and strategic factor: Basque institutions particularly value projects that, in addition to generating spending and employment, contribute to the external projection of the territory, the consolidation of the local audiovisual fabric, and the dissemination of Basque language and culture.

9. Tax Incentives for Foreign Productions in Navarre (Tax Rebate)

In Navarre, foreign productions access the tax deduction through a Navarrese production or co-production company that participates in the project and effectively bears the expenses in the Foral Community. It is this company, subject to Navarrese Corporation Tax, that applies the deduction based on the expenses it assumes and the requirements set by provincial regulations.

Rates and limits in Navarre

• 35% deduction on expenses incurred in Navarre.
• Can reach 40% in certain cases, such as animation audiovisual works and works considered "difficult" (due to content, language, target audience, etc.).
• Essential requirement: at least 40% of the deduction base must correspond to expenses incurred in Navarre.
• The deduction limit per production is €5,000,000, with no quota limit in Navarre Corporation Tax (i.e., it can eliminate virtually all of the tax liability, if applicable).

Production expenses incurred in Navarre

Part of the deduction base:

• Production cost of the work in the part executed in Navarre.
• Expenses for obtaining copies and exhibition materials, provided they are assumed by the Navarrese producer.
• Advertising and promotion expenses, with certain percentage limits on production cost.

Not deductible base expenses:

• Financial expenses.
• General administrative structure of the company.
• Part of international marketing and those costs that cannot be clearly linked to the project or are not generated in Navarrese territory.

Requirements to apply the deduction in Navarre

• Work with a company established in Navarre, acting as executive producer or co-producer and effectively bearing the expense in the Foral Community.
• Obtain the certificate accrediting the cultural character of the work.
• Provide supporting documentation for expenses incurred in Navarre.
• Respect the State aid intensity limits, so that the sum of the deduction and other subsidies or public support does not exceed 50% of production cost, except for exceptions provided for difficult or low-budget works.

10. Investor Participation in Foreign Productions (Tax Rebate)

The participation of investors in a foreign audiovisual production filmed in Spain is usually structured through a Spanish production or executive production company, which is the entity that generates the tax deduction ("Tax Rebate") for expenses incurred in Spanish territory.

Investors provide financing to that Spanish company, typically through specific investment structures (for example, Economic Interest Groupings or similar vehicles). In exchange for their contribution:

• The Spanish production company executes the filming and generates the tax deduction provided for foreign productions (Article 36.2 LIS or corresponding regional/provincial regime).
• All or part of the tax benefit (the deduction) is transferred to the investor, who applies it in their Corporation Tax, reducing their tax liability, similar to what is provided for Spanish productions and investors in Article 39.7 LIS.

For the scheme to work, it is essential that:

• The foreign production meets the legal and cultural requirements for the "Tax Rebate".
• The eligible expenses are actually incurred in Spain (or in the corresponding special regime autonomous community) and are properly documented.
• The aid intensity limits and maximum deduction amount are respected.

In summary, the investor does not produce the work nor receive the "Tax Rebate" directly: they finance the Spanish production company, which generates the deduction for the foreign production and transfers it to the investor as a tax benefit. In many cases, this scheme is combined with regulated co-productions, as we explain in detail in film co-production in Spain.

11. Practical Checklist for Foreign Producers

12. Frequently Asked Questions (FAQ): Tax Deductions for Foreign Productions (Article 36.2 LIS)

Who can apply the Article 36.2 LIS deduction?

The deduction can only be applied by producers or production services companies established in Spain, registered with ICAA, that execute the foreign production (or part of it) in Spanish territory. The foreign production company does not apply the incentive directly; it does so through its Spanish partner, as confirmed by the AEAT in its manuals on Article 36.2 LIS.

What is the minimum spend required to access the Tax Rebate?

Generally, a minimum spend of €1,000,000 in Spanish territory is required, except for animation productions, where the minimum is reduced to €200,000. These thresholds are set in Article 36.2 LIS itself and are included in the updated Spanish Tax Agency guides [Spanish Tax Agency – Deductions for foreign productions](https://sede.agenciatributaria.gob.es).

What is the deduction rate under the general national regime?

Under the national framework, Article 36.2 LIS establishes a deduction of 30% on the first million of base and 25% on the excess, with a maximum of €20M per production (€10M/episode for series) and a joint limit of 50% of production cost together with other public aid. These parameters remain in force as of December 2026, according to AEAT Income and Corporation Tax manuals.

What is the difference between the general regime and special regimes (Canary Islands, Basque Country, Navarre)?

Special regimes offer higher rates and higher caps, but require:

• That expenses are concentrated in the territory (Canary Islands, Basque Country, or Navarre).
• Working through local production companies with tax residence in those territories.
• Meeting additional requirements (specific certificates, minimum investments, aid intensity limits, minimum percentage of local spend, etc.).

What happens if I only do visual effects (VFX) in Spain?

If the Spanish production company is limited to executing visual effects for a foreign production, Article 36.2 provides for a deduction of 30% of the base, without requiring the €1,000,000 minimum spend, but with a limit set by Regulation (EU) 1407/2013 (de minimis aid) and without being integrated into the joint deduction limit of Article 39.1 LIS.

Is the cultural certificate mandatory?

Yes, generally, the production must obtain a cultural certificate issued by ICAA or the competent regional authority, except in the special VFX case, where this requirement is not required. As of 2026, this requirement continues to apply under the terms established after the 2021 reform and subsequent Law 38/2022.

How do investors participate in the Tax Rebate for a foreign production?

Investors typically participate through an investment structure (for example, an EIG) that provides financing to the Spanish production company. This generates the Article 36.2 LIS deduction and, through the financing contract, transfers the tax benefit to investors, who apply it in their Corporation Tax return. The scheme is analogous to that described in our article on film tax incentives in Spain.

Can the sum of deduction and subsidies exceed 50% of cost?

No. Both under the general regime and in most special regimes, an aid intensity limit applies: the sum of the tax deduction and other public aid or subsidies may not exceed, generally, 50% of the production cost of the work, except for difficult works or other exceptional cases admitted by European regulations on audiovisual sector aid.

How do I contact you to structure a specific project?

You can write to us directly at productioncompany@camaleoncinema.com briefly explaining the type of project (feature film, series, animation, documentary), estimated budget, schedule, and whether you are interested in the general regime, Canary Islands, Basque Country, Navarre, or international co-production. From there, our tax and production team will propose the best combination of Tax Rebate, co-production, and investor financing.

13. Related Readings and Specialized Advisory

To delve deeper into other aspects of Spain's audiovisual incentive system and the interaction between Tax Credit (Article 36.1), Tax Rebate (Article 36.2), and investors (Article 39.7), you can consult:

• Spain Film Tax Rebate (Article 39.7 LIS): financing through investors and EIG structures.
• Film Tax Incentives in Spain (Tax Credit and Tax Rebate): comprehensive overview of the national framework.
• Our guide on film co-production in Spain, where we explain how to combine regulated co-productions with the use of regional and national tax incentives.

If you are planning an international production in Spain and want to structure it to maximize the Tax Rebate under Article 36.2 LIS (and its variants in the Canary Islands, Basque Country, or Navarre), write to us at productioncompany@camaleoncinema.com and our team will help you design the most appropriate tax and production scheme for your project.