Tax Credit Art. 36.1 LIS 2026: tax deduction for Spanish audiovisual productions
The Tax Credit of article 36.1 of the Corporate Income Tax Law (LIS) is the main tax incentive for Spanish audiovisual productions (feature films, series, animation and documentary). In this guide we explain in practical terms how the tax deduction art. 36.1 LIS works for producers and investors: percentages (54%/45%), maximum limits (€36M / €18M), nationality and cultural character requirements (ICAA), deduction base, application of the tax credit, and comparison with special regimes (Canary Islands, Basque Country, Navarre).
If you are considering producing or investing in film in Spain and need comprehensive support, visit our service categories: Film production company, film production company in Canary Islands, filming and production services, post-production and contact.
Looking for a global overview of all tax incentives in Spain? Check our general article: Tax deductions for film in Spain 2026: Complete guide for producers and investors. For the foreign productions regime (art. 39.7 LIS), review: Tax Rebate film Spain (art. 39.7 LIS). And for the specific Canary Islands incentive, check: Tax Rebate Canary Islands 2026.
Table of contents
- Quick summary of Tax Credit art. 36.1 LIS (2026)
- What is the Tax Credit art. 36.1 LIS?
- How does the deduction work? Percentages and limits
- Deduction base: eligible expenses and limits
- Nationality and cultural character requirements (ICAA)
- Application for producers: direct tax credit
- Investor participation in the Tax Credit
- Comparison: Tax Credit 36.1 vs. special regimes (Canary Islands, Basque Country, Navarre)
- Key differences: Tax Credit 36.1 vs. Tax Rebate 39.7
- Aid intensity limits (State aid framework)
- Producer/investor checklist
- Frequently asked questions (FAQ)
- Related reading
| Element | Key data | Comment |
|---|---|---|
| Legal article | Art. 36.1 LIS (Law 27/2014) | General regime for Spanish productions. |
| Percentage (first million) | 54% on the first million of base | Applicable if the aid does not exceed 50% of eligible costs (State aid framework). |
| Percentage (excess) | 45% on the excess | For base exceeding the first million. |
| Maximum limit | €36M (feature film) / €18M (episode) | Maximum caps per work (effective from 01/01/2021). |
| Essential requirements | Spanish nationality certificate + Cultural character certificate (ICAA) | Issued by ICAA or competent regional authority. |
| Deduction limit on tax liability | 80% of gross tax liability (general) | Joint limit with other deductions under art. 36 LIS. |
| Beneficiaries | Producers and investors (individuals or legal entities) | Producers: direct tax credit. Investors: through financing contract. |
| Special regimes | Canary Islands, Basque Country, Navarre | Higher percentages and limits in territories with special or foral regime. |
Regulatory update 2026
⚠️ Important news and clarifications (2026)
- Current percentages and limits: The percentages of 54%/45% and the maximum limits of €36M / €18M are effective for tax periods starting from January 1, 2021, according to the current wording of art. 36.1 LIS.
- Deduction limit on gross tax liability: The deduction under art. 36.1 LIS cannot exceed, jointly with other deductions under art. 36 LIS, 80% of the gross tax liability (general). In the Canary Islands, the limit can reach 90% (or 100% in La Palma, La Gomera and El Hierro).
- Reference regulations: Law 27/2014 (LIS), Royal Decree 1514/2018 (art. 36 LIS regulation), Order CUD/1378/2020 (ICAA certificates), and AEAT binding consultations.
- ICAA certificates: Spanish productions require nationality and cultural character certificates from ICAA (or competent regional authority). In addition, a copy must be deposited in a recognized film archive.
- Investors: Investors (individuals or legal entities) can apply the deduction through a financing contract with the producer, notification to the tax administration and maintenance of the ownership percentage for 3 years.
What is the Tax Credit art. 36.1 LIS?
The Tax Credit of article 36.1 of the Corporate Income Tax Law (Law 27/2014) is the main tax incentive for Spanish audiovisual productions. It allows producers and investors to deduct a percentage of the investment made in feature films and audiovisual series of fiction, animation or documentary that obtain the Spanish nationality certificate and the cultural character certificate (issued by ICAA or competent regional authority).
Unlike the Tax Rebate of art. 39.7 LIS (intended for foreign productions and production services), the Tax Credit of art. 36.1 LIS is designed for works of Spanish nationality and can be applied by both producers (direct tax credit) and investors (through financing contract).
Important: Tax Credit 36.1 is compatible with special regimes in territories such as the Canary Islands, Basque Country and Navarre, which offer higher percentages and limits. For more information about the Canary Islands regime, check our article: Tax Rebate Canary Islands 2026.
How does the deduction work? Percentages and limits
According to article 36.1 of the Corporate Income Tax Law (Law 27/2014), production entities and investors that invest in feature films and audiovisual series of fiction, animation or documentary that obtain the Spanish nationality certificate and the cultural character certificate (issued by ICAA or competent regional authority), can apply the following deduction:
| Tier / element | Application | Detail |
|---|---|---|
| First million of base | 54% | Applicable if the aid does not exceed 50% of eligible costs (State aid framework). |
| Excess over the first million | 45% | Applicable on the excess of the previous tier amount. |
| Maximum deduction amount | €36M (feature film) | Maximum cap per feature film. |
| Maximum deduction amount | €18M (episode) | Maximum cap per episode in series. |
| Limit on gross tax liability | 80% of gross tax liability (general) | Joint limit with other deductions under art. 36 LIS. |
Important: The indicated percentages and limits (54%/45%, €36M/€18M) are effective for tax periods starting from January 1, 2021, according to the current wording of art. 36.1 LIS. In the Canary Islands, the deduction limit on gross tax liability can reach 90% (or 100% in La Palma, La Gomera and El Hierro).
Deduction base: what expenses can be deducted
The deduction base consists of:
- Production cost of the audiovisual work.
- Costs of obtaining copies and media.
- Advertising and promotion expenses borne by the producer, with a limit of 40% of the production cost.
From this total, subsidies received to finance investments with the right to tax deduction are deducted. In addition, at least 50% of the base must correspond to expenses incurred in Spanish territory.
Important note: Eligible expenses must be linked to audiovisual production activity and meet ICAA requirements (nationality and cultural character certificates). For more information on how to structure your production, check our filming and production services.
Nationality and cultural character requirements (ICAA)
To access the Tax Credit of art. 36.1 LIS, Spanish productions must obtain two essential certificates issued by ICAA (Institute of Cinematography and Audiovisual Arts) or competent regional authority:
1. Spanish nationality certificate
The Spanish nationality certificate certifies that the audiovisual work meets the criteria to be considered a Spanish production. The main requirements include:
| Requirement | What it implies | Notes |
|---|---|---|
| 1) Producer domiciled in Spain | Producer with tax domicile in Spain or in the EEA with a branch in Spain | Essential requirement to access the incentive. |
| 2) Artistic/technical/creative team | Significant percentage of Spanish or EEA team | Assessed by scale (director, screenwriter, actors, DOP, etc.). |
| 3) Language | Official languages of Spain/co-official or EEA | Or justify another language for artistic reasons. |
| 4) Cultural connection | Assessed by scale (content, locations, etc.) | Theme, values, representation of Spanish cultural diversity. |
| 5) Percentage of budget spent in Spain | Minimum 50% of the deduction base | Essential requirement to access the incentive. |
| 6) Regulatory compliance | Labor, tax, Social Security, environment | General requirement for all productions. |
| 7) Application to ICAA | Script, contracts, budget and supporting documentation | Processing before ICAA or competent regional authority. |
Note: In co-productions, specific regulations apply (international agreements, European Convention on Cinematographic Co-Production, etc.).
2. Cultural character certificate
The cultural character certificate certifies that the audiovisual work meets cultural quality criteria and contributes to the development of Spanish cinematographic heritage. The criteria include:
- Cultural content (theme, values, representation of Spanish cultural diversity).
- Artistic and technical quality (assessment of script, direction, cinematography, editing, etc.).
- Contribution to the sector (professional training, technical innovation, etc.).
The application for the cultural character certificate is made to ICAA (or competent regional authority) together with the work's documentation (script, artistic report, budget, etc.). In addition, a copy must be deposited in a recognized film archive (Spanish Film Archive or regional film archive).
Application for producers: direct tax credit
Producers (production entities with tax domicile in Spain) can apply the Tax Credit of art. 36.1 LIS as a direct tax credit to be deducted from the gross Corporate Income Tax liability.
If there is not sufficient tax liability to apply the entire deduction in the tax period of its generation, the remaining balance can be deducted in subsequent tax years, respecting the joint limit of 80% of the gross tax liability (or 90%/100% in the Canary Islands).
Practical application: The deduction is generated in the tax period in which the certificates (nationality and cultural character) are obtained and the investment requirements are met. If you are a film production company based in Spain, you can apply the tax credit directly in your Corporate Income Tax return.
Investor participation in the Tax Credit
One of the most relevant features of the Tax Credit of art. 36.1 LIS is that it allows the participation of investors (individuals or legal entities) who are not producers but who finance the production through a financing contract with the producer.
How does it work for investors?
Investors can apply the deduction of art. 36.1 LIS if they meet the following requirements:
| Requirement | What it implies | Notes |
|---|---|---|
| 1) Financing contract | Signing of financing contract with the producer | Must be formalized before the end of the tax period of generation of the deduction. |
| 2) Notification to tax administration | Notification to AEAT before the end of the tax period | Essential requirement to access the incentive. |
| 3) Maintenance of ownership percentage | Maintain the ownership percentage for 3 years | From the date of generation of the deduction. |
| 4) Application of the deduction | Deduction against Corporate Income Tax liability (or Personal Income Tax) | Respecting the limit of 80% of gross tax liability (or 90%/100% in Canary Islands). |
Practical example: investor in Spanish production
An investment company (non-producer) signs a financing contract with a Spanish production company to finance 30% of the budget of a fiction feature film (total budget: €5,000,000). The investor's investment is €1,500,000.
The production company obtains the nationality and cultural character certificates from ICAA. The total deduction base is €4,500,000 (production cost + copies + advertising, minus subsidies). The investor can apply the deduction on their 30% of the base: €1,350,000.
Applying the percentages of art. 36.1 LIS:
- First million: €1,000,000 × 54% = €540,000
- Excess: €350,000 × 45% = €157,500
- Total investor deduction: €697,500
The investor can apply this deduction against their Corporate Income Tax liability (respecting the limit of 80% of gross tax liability), and if there is not sufficient tax liability, they can carry forward the pending amount to subsequent tax years.
Important: The investor must maintain the ownership percentage for 3 years from the date of generation of the deduction. If you need advice to structure your film investment, contact us.
Comparison: Tax Credit 36.1 vs. special regimes (Canary Islands, Basque Country, Navarre)
The Tax Credit of art. 36.1 LIS is the general regime for Spanish productions throughout Spanish territory. However, there are special regimes in territories with special or foral regime that offer higher percentages and limits:
| Territory | Percentage (first million) | Percentage (excess) | Maximum limit | Limit on tax liability |
|---|---|---|---|---|
| Spain (general) | 54% | 45% | €36M / €18M | 80% |
| Canary Islands | 54% | 45% | €36M / €18M | 90% (general) / 100% (La Palma, La Gomera, El Hierro) |
| Basque Country | Up to 50% | Up to 50% | Variable according to foral regulations | Variable according to foral regulations |
| Navarre | Up to 50% | Up to 50% | Variable according to foral regulations | Variable according to foral regulations |
Important note: The special regimes of the Canary Islands, Basque Country and Navarre have additional requirements (specific certificates, minimum filming/production, hiring of local personnel, etc.). For more information about the Canary Islands regime, check our article: Tax Rebate Canary Islands 2026.
Key differences: Tax Credit 36.1 vs. Tax Rebate 39.7
It is important to distinguish the Tax Credit of art. 36.1 LIS (Spanish productions) from the Tax Rebate of art. 39.7 LIS (foreign productions and production services). Although both are tax incentives for the audiovisual sector, they have key differences:
? Key differences between Tax Credit 36.1 and Tax Rebate 39.7
| Element | Tax Credit 36.1 LIS | Tax Rebate 39.7 LIS |
|---|---|---|
| Target | Spanish productions (with nationality certificate) | Foreign productions (without nationality certificate) |
| Beneficiaries | Producers and investors | Production companies or production service companies |
| Percentages | 54% (first million) / 45% (excess) | 30% (general) / 35% (Canary Islands, Ceuta, Melilla) |
| Maximum limit | €36M / €18M | €10M (general) / €20M (Canary Islands, Ceuta, Melilla) |
| Requirements | Nationality certificate + cultural character (ICAA) | Minimum expenditure in Spain (€1M general / €200,000 animation) |
| Application | Tax period of obtaining certificates | Tax period of completion of production |
Important: The Tax Credit 36.1 is more advantageous in terms of percentages and limits, but requires that the production obtains the Spanish nationality certificate. The Tax Rebate 39.7 is designed for foreign productions that do not meet nationality requirements but that incur significant expenses in Spain. For more information about Tax Rebate 39.7, check our article: Tax Rebate film Spain (art. 39.7 LIS).
Aid intensity limits (State aid framework)
The Tax Credit of art. 36.1 LIS is subject to the State aid framework of the European Union, which establishes aid intensity limits to ensure compatibility with the internal market. The main limits are:
| Type of aid | Intensity limit | Comment |
|---|---|---|
| General aid (audiovisual production) | 50% of eligible costs | General limit according to Regulation 651/2014 of the EU Commission. |
| Additional aid (cross-border productions) | Up to 60% of eligible costs | For productions with participation from several Member States. |
| Additional aid (difficult productions) | Up to 60% of eligible costs | For low-budget productions or with financing difficulties. |
| Additional aid (co-productions) | Up to 60% of eligible costs | For international co-productions. |
Important: The percentage of 54% on the first million of deduction base can be applied if the aid does not exceed 50% of eligible costs. If the aid exceeds this limit, the deduction percentage must be adjusted to comply with the State aid framework.
Producer/investor checklist: documentation and procedures
✅ Documentation for Spanish nationality certificate (ICAA)
- Application to ICAA (or competent regional authority).
- Script or treatment of the work.
- Descriptive report of the production (synopsis, technical sheet, locations, etc.).
- Complete credits (artistic, technical and creative team).
- Detailed budget and breakdown of expenses in Spain.
- Contracts of creative and technical personnel.
- Proof of expenses (invoices, payrolls, contracts, etc.).
- Co-production documentation (if applicable).
✅ Documentation for cultural character certificate (ICAA)
- Application to ICAA (or competent regional authority).
- Script or treatment of the work.
- Artistic report (assessment of cultural content, artistic and technical quality, contribution to the sector).
- Digital copy of the finished work.
- Copy deposit at the Spanish Film Archive or recognized regional film archive.
✅ Procedures for investors (Tax Credit art. 36.1 LIS)
- Signing of financing contract with the producer (before the end of the tax period of generation of the deduction).
- Notification to the tax administration (AEAT) before the end of the tax period.
- Maintenance of ownership percentage for 3 years from the date of generation of the deduction.
- Application of the deduction against Corporate Income Tax liability (or Personal Income Tax), respecting the limit of 80% of gross tax liability (or 90%/100% in Canary Islands).
✅ Application of the deduction (Corporate Income Tax)
- Generation of the deduction in the tax period in which the certificates (nationality and cultural character) are obtained and the investment requirements are met.
- Application of the tax credit against the gross Corporate Income Tax liability (80% or 90%/100% limit in Canary Islands).
- Carryforward of the pending amount to subsequent tax years (if there is not sufficient tax liability).
- Maintenance of ownership percentage for 3 years (for investors).
Frequently asked questions (FAQ): Tax Credit art. 36.1 LIS
What is the Tax Credit of article 36.1 LIS?
The Tax Credit of article 36.1 of the Corporate Income Tax Law (Law 27/2014) is the main tax incentive for Spanish audiovisual productions. It allows producers and investors to deduct a percentage of the investment made in feature films and audiovisual series of fiction, animation or documentary that obtain the Spanish nationality certificate and the cultural character certificate (issued by ICAA or competent regional authority).
What are the deduction percentages of Tax Credit art. 36.1 LIS?
The deduction percentages are: 54% on the first million of deduction base (if the aid does not exceed 50% of eligible costs) and 45% on the excess of the first million. The maximum limits are €36M per feature film and €18M per episode in series.
What expenses can be deducted with Tax Credit art. 36.1 LIS?
The deduction base includes: production cost of the audiovisual work, costs of obtaining copies and media, and advertising and promotion expenses borne by the producer (with a limit of 40% of production cost). Subsidies are deducted and at least 50% of the base must correspond to expenses incurred in Spanish territory.
Who can benefit from Tax Credit art. 36.1 LIS?
Producers (production entities with tax domicile in Spain) and investors (individuals or legal entities that finance the production through a financing contract with the producer). Producers apply the tax credit directly; investors must meet additional requirements (financing contract, notification to AEAT, maintenance of ownership percentage for 3 years).
How is the deduction of Tax Credit art. 36.1 LIS applied?
The deduction is applied as a tax credit against Corporate Income Tax liability (or Personal Income Tax for individuals). If there is not sufficient tax liability, the pending amount can be deducted in subsequent tax years, respecting the limit of 80% of gross tax liability (or 90%/100% in Canary Islands).
What requirements must Spanish productions meet to access Tax Credit art. 36.1 LIS?
Spanish productions must obtain two essential certificates issued by ICAA or competent regional authority: Spanish nationality certificate (certifies that the work meets the criteria to be considered a Spanish production) and cultural character certificate (certifies that the work meets cultural quality criteria). In addition, a copy must be deposited in a recognized film archive.
Can investors apply Tax Credit art. 36.1 LIS?
Yes. Investors (individuals or legal entities who are not producers) can apply the deduction of art. 36.1 LIS if they meet the following requirements: signing of financing contract with the producer, notification to AEAT before the end of the tax period, and maintenance of ownership percentage for 3 years from the date of generation of the deduction.
What is the difference between Tax Credit 36.1 and Tax Rebate 39.7?
The Tax Credit 36.1 is intended for Spanish productions (with nationality certificate) and can be applied by producers and investors. The Tax Rebate 39.7 is intended for foreign productions (without nationality certificate) and can be applied by production companies or production service companies. The percentages and limits of Tax Credit 36.1 are more advantageous (54%/45%, €36M/€18M) than those of Tax Rebate 39.7 (30%/35%, €10M/€20M).
What advantages does the special Canary Islands regime offer for Tax Credit art. 36.1 LIS?
In the Canary Islands, the deduction limit on gross tax liability can reach 90% (general) or 100% (in La Palma, La Gomera and El Hierro), instead of the general 80%. In addition, productions in the Canary Islands must obtain the Canary Islands Audiovisual Production Certificate (issued by the Government of the Canary Islands) and meet additional requirements (minimum filming/production, hiring of personnel with tax residence in the Canary Islands, etc.). For more information, check our article: Tax Rebate Canary Islands 2026.
What are the aid intensity limits of Tax Credit art. 36.1 LIS?
The Tax Credit of art. 36.1 LIS is subject to the State aid framework of the European Union. The general aid intensity limit is 50% of eligible costs (according to Regulation 651/2014 of the EU Commission). For cross-border productions, difficult productions or co-productions, the limit can reach 60% of eligible costs.
Where can I get more information about Tax Credit art. 36.1 LIS?
For more information about Tax Credit art. 36.1 LIS, check our blog or contact us. You can also consult the reference regulations: Law 27/2014 (LIS), Royal Decree 1514/2018 (art. 36 LIS regulation), Order CUD/1378/2020 (ICAA certificates), and AEAT binding consultations.
Related reading
- Tax deductions for film in Spain 2026: Complete guide for producers and investors
- Tax Rebate film Spain (art. 39.7 LIS)
- Tax Rebate Canary Islands 2026: film deduction Canary Islands and audiovisual tax incentives Canary Islands
- Film grants and subsidies in Spain
- Film production company
- Film production company in Canary Islands
