Tax Rebate for Audiovisual Productions

TAX REBATE FOR INVESTMENTS IN SPANISH FILM PRODUCTIONS IN BARCELONA 

Who are the beneficiaries of the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")?

Article 36.1 of the Corporate Income Tax Law establishes two possible beneficiaries of the deduction for investments in Spanish film productions in Barcelona:

Producers These are the taxpayers who make Spanish productions of feature and short films and audiovisual series, whether fiction, animation or documentaries.

In order to delimit the concept of producer for the purposes of accessing thededuction are established as the main aspects that must be complied withaccording to a resolution of the Central Economic Administrative Court, the following:

1. Initiative. It must have the capacity to decide on the realisation of the work and its final materialisation

2. Responsibility. It must assume the risk of production.

3. Be the owner of the rights derived from the audiovisual work.

Funders: Legislation currently allows for the following to be applied the deduction for the financing of Spanish productions of feature films and short films, fiction, animation or documentary audiovisual series is available to entrepreneurs and professionals who participate in such financing under the same conditions as producers if they meet the following requirements:

What is the basis for the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")?

The basis for the deduction is the total cost of production and the producer's expenses for obtaining copies and the producer's advertising and promotional expenses, up to a limit for such costs of 40 per cent of the cost of production.

At least the 50 per cent of the deduction base must correspond to expenses incurred in Spanish territory.

In the event of a co-production the amounts are determined for each producer on the basis of its respective percentage shareholding in it.

The basis for the deduction shall be reduced by the amount of subsidies received to finance the investments giving entitlement to the deduction.

What is the deduction percentage and the maximum amount of the deduction? for investments in Spanish film productions in Barcelona ("Tax Rebate")

Regarding the percentage:

Investments made in Spanish feature and short film productions and fiction, animation or documentary audiovisual series that allow the production of a physical medium prior to their serialised industrial production entitle the producer and the taxpayer(s) participating in the financing of the work (financier(s)) to the following deductions:

• From 30 per cent of the first million of the basis for the deduction.
• From 25 per cent on the excess of this amount.

participate in the financing of the work (financier(s)) to the following deductions:

The maximum amount of the deduction shall be the result of multiplying by 1.20 the amount of the amounts contributed for the financing of production costs and expenses incurred in obtaining copies, publicity and promotion to be borne by the producer, with the 30 per cent limit of production costs.

The excess deduction could be applied by the producer who has generated the right to such a deduction.

Regarding the maximum amount of the deduction for the producer(s):

As a general rule the amount of the deduction may not exceed EUR 20 million.

For audiovisual series, the deduction is determined per episode, and the limit is set at 10 million euros per episode produced.

In the case of co-productions, the amounts indicated are determined for each co-producer according to their respective percentage of participation.

Regarding the maximum amount of the deduction for the financer(s):

The amount of the deduction can be determined under the same conditions applied to the producer if they have been generated by the producer, and in any case the maximum amount of the deduction shall be the result of multiplying by 1.20 the amount of the amounts contributed for the financing of production costs and expenses incurred in obtaining copies, publicity and promotion to be borne by the producer, with the 30 per cent limit of production costs.

The excess deduction could be applied by the producer who has generated the right to such a deduction.

What are the requirements for obtaining a deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")

In order to be able to apply the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate"), the following requirements must be met:

1. That the production obtains the certificate of nationality and the certificate attesting to the cultural character of the content, the link with the Spanish cultural reality or the contribution to the enrichment of the cultural diversity of the cinematographic works shown in Spain, both issued by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), or by the corresponding body of the Autonomous Community with competence in the matter.

Both certificates are binding for the competent tax administration for the accreditation and application of tax incentives and for the identification of the beneficiary producer, regardless of when they are issued

2. Deliver a new and in perfect condition copy of the audiovisual work at the Filmoteca Española or officially recognised film library in each Autonomous Community.

3. That the final credits of the audiovisual work include a specific reference to the fact that the production has benefited from the tax deduction, and the collaboration, where applicable, of the Spanish Government, the Autonomous Community and the Film Commission or Film Office directly involved in the filming and other production processes that have taken place in Spain, and in the case of animated works, the place where the studio in charge of the production is based.

4. That the holders of the rights of the work authorise the use of the title and the graphic and audiovisual press material, which expressly includes specific locations of the filming or any production process that has taken place in Spain for the carrying out of activities and the preparation of promotional materials both in Spain and abroad for cultural and/or tourism purposes, which may be carried out by state, autonomous or local entities with competence in the field of culture, tourism and economy, as well as the Film Commission and Film Offices that have been involved in the filming of the work.

What are the requirements to obtain the Spanish nationality certificate for a film production?

The certificate of Spanish nationality of a film production is granted by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), and according to the Ley del Cine and associated regulations, the following requirements must be fulfilled in order to be granted:

1. The production company must be domiciled in Spain, or in a Member State of the European Economic Area and have a branch office in Spain

2. A significant percentage of the actors, , technicians y creative must be of Spanish nationality or from European Economic Area countries, including positions such as director, scriptwriter(s), composer(s), lead actor(s)/actress(es), etc.

3. The work must be carried out in any of the official languages of Spain, the project must be written in Spanish, in one of the co-official languages or in one of the languages of a country of the European Economic Area. If it is in another language, its artistic or cultural relevance must be justified.

4. The script and the play must have a meaningful cultural connection with Spain or with the countries of the European Economic Area. This connection is assessed on the basis of a scale of points defined in the regulations.

5. Of the film's budget one percentage to be spent on Spanish territoryl including contracting of services, equipment rental, hiring of personnel, etc.

6. Production must comply with legislation the company also complies with Spanish labour, tax and social security regulations, as well as with environmental regulations and established ethical standards.

7. Submit a application to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) (Institute of Cinematography and Audiovisual Arts) including the script of the work, production contracts, detailed budget, certificates of nationality or residence of the technical and artistic team, a report justifying the cultural connection of the work and documentation accrediting the expenses in Spain.

The film production must obtain a minimum score in a rating system designed by the ICAA, which takes into account the script, language, the equipment, the location and the cultural theme.

In the case of international co-productions, the specific regulations on proportional participation of each country must be complied with, depending on whether it is a majority or minority Spanish co-production.

The documentation is submitted by application to the ICAA, which will assess whether the film meets the requirements. In the event that the the certificate accrediting the Spanish nationality of the work is issued.

What are the requirements for obtaining the certificate attesting to the cultural character of a film production?

The certificate attesting to the cultural character of a film production in Spain is granted by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) (Institute of Cinematography and Audiovisual Arts) or by the competent authorities of the Autonomous Communities that have been granted competence, as appropriate. The main requirements and criteria for obtaining the certificate are as follows:

1. Cultural or educational nature of the content: The audiovisual work must be related to the culture, history, art, traditions or values of Spain or the States of the European Economic Area. Relevant social themes, promoting cultural diversity or encouraging the preservation of heritage may be included.

2. Language of production: It must be made in spanish, in any of the co-official languages of Spain or in languages of other European Economic Area countries.

3. Connection with the Spanish or European cultural sphere: The audiovisual work must reflect or promote cultural values that are related to Spain or Europe, either through the subject matter, the characters, the setting, or the treatment of historical, artistic or social elements.

4. Participation of Spanish or European talent: It is necessary that a significant part of the technical and artistic team be of Spanish nationality or of a Member State of the European Economic Area, including positions such as as director, screenwriter(s), director of photography, lead actors/actresses, and composers and other key positions in the production.

5. Contribution to the cultural and creative sector: The production must prove that it contributes to the development of the cultural industry in Spain or in the European Economic Area in terms of employment, training of talent or impact on the audiovisual industry.

6. Compliance with applicable regulations: The audiovisual work must comply with Spanish labour, tax, intellectual property and environmental laws.

When applying for the certificate, the production company shall submit to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) (Institute of Cinematography and Audiovisual Arts) or to the relevant regional body a dossier including a full copy of the script of the work or, failing this, a detailed synopsis justifying its cultural nature, a detailed list of the technical and artistic team, indicating the nationalities of each of its members, a document explaining the connection of the work with the Spanish or European cultural, educational, social or historical sphere, detailed information on where the filming will take place and whether Spanish cultural heritage is included, an indication of the percentage of expenditure to be made in Spain and its economic and cultural impact, and accreditation that the production company complies with the legal requirements and has sufficient financial resources.

The productions must pass a rating system in which elements such as language, equipment, subject matter, and location are weighted.

The Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) (Institute of Cinematography and Audiovisual Arts) or corresponding body will assess the application submitted on the basis of the innovative content and its contribution to the cultural landscape, whether the work promotes cultural or social values or has a clear educational objective, the use of local resources and the hiring of Spanish or European professionals are valued, and productions that promote inclusion are also particularly valued.

The production company must submit all the required documentation to the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) (Institute of Cinematography and Audiovisual Arts) or the corresponding regional body, which will review the documentation and issue a report on compliance with the requirements. If all the criteria are met, the certificate of cultural character is awarded.

Who are the beneficiaries of the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")?

Article 36.1 of the Corporate Income Tax Law establishes two possible beneficiaries of the deduction for investments in Spanish film productions in Barcelona:

ProducersThese are the taxpayers who make Spanish productions of feature and short films and audiovisual series, whether fiction, animation or documentaries.

In order to delimit the concept of producer for the purposes of accessing the deduction are established as the main aspects that must be complied with according to a resolution of the Central Economic Administrative Court, the following:

1. Initiative. It must have the capacity to decide on the realisation of the work and its final materialisation

2. Responsibility. It must assume the risk of production.

3. Be the owner of the rights derived from the audiovisual work.

Funders:Legislation currently allows for the following to be appliedthe deduction for the financing of Spanish productions of feature films and short films, fiction, animation or documentary audiovisual series is available to entrepreneurs and professionals who participate in such financing under the same conditions as producers if they meet the following requirements:

In film productions

Who are the beneficiaries of the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")?

Article 36.1 of the Corporate Income Tax Law establishes two possible beneficiaries of the deduction for investments in Spanish film productions in Barcelona:

ProducersThese are the taxpayers who make Spanish productions of feature and short films and audiovisual series, whether fiction, animation or documentaries.

In order to delimit the concept of producer for the purposes of accessing the deduction are established as the main aspects that must be complied with according to a resolution of the Central Economic Administrative Court, the following:

1. Initiative. It must have the capacity to decide on the realisation of the work and its final materialisation

2. Responsibility. It must assume the risk of production.

3. Be the owner of the rights derived from the audiovisual work.

Funders:Legislation currently allows for the following to be applied the deduction for the financing of Spanish productions of feature films and short films, fiction, animation or documentary audiovisual series is available to entrepreneurs and professionals who participate in such financing under the same conditions as producers if they meet the following requirements:

Who are the beneficiaries of the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate")?

Article 36.1 of the Corporate Income Tax Law establishes two possible beneficiaries of the deduction for investments in Spanish film productions in Barcelona:

ProducersThese are the taxpayers who make Spanish productions of feature and short films and audiovisual series, whether fiction, animation or documentaries.

In order to delimit the concept of producer for the purposes of accessing the deduction are established as the main aspects that must be complied withaccording to a resolution of the Central Economic Administrative Court, the following:

1. Initiative. It must have the capacity to decide on the realisation of the work and its final materialisation

2. Responsibility. It must assume the risk of production.

3. Be the owner of the rights derived from the audiovisual work.

Funders:Legislation currently allows for the following to be applied the deduction for the financing of Spanish productions of feature films and short films, fiction, animation or documentary audiovisual series is available to entrepreneurs and professionals who participate in such financing under the same conditions as producers if they meet the following requirements:

The overall limit of the amount of the deduction for investments in Spanish film productions in Barcelona ("Tax Rebate"), together with the rest of the aid received by the taxpayer, may not exceed 50 per cent of the cost of production, being the amount limit of the above mentioned deduction of 20.000.000 per production; for audiovisual series of 10.000.000 per episode.

Said limit is extended in the following cases:

a) The 80 per cent for short films

b) The 80 per cent for productions directed by a person who has not directed or co-directed more than two feature films that have been qualified for commercial exploitation in exhibition halls and whose production budget does not exceed 1.500.000 euros

c) The 80 per cent for fully shot productions at one of the co-official languages other than Spanish that are used in the screened in Spain in that co-official language or subtitled.

d) 80 per cent for productions directed exclusively with a degree of disability equal to or greater than 33 per cent which has been recognised by the competent body.

e) The 75 per cent for productions made exclusively by directors.

f) The 75 per cent for productions of particular cultural or artistic value in need of exceptional financial assistance in accordance with the criteria established by Ministerial Order or in each call for applications.

g) The 75 per cent for documentaries.

h) The 75 per cent for animation works with a budget of production not exceeding 2.500.000 euros.

(i) The 60 per cent for cross-border productions financed by more than of a Member State of the European Union and in which the following are involved producers from more than one Member State

(j) The 60 per cent for international co-productions with countries latin American countries.

In which tax period does the deduction apply? for investments in Spanish film productions in Barcelona ("Tax Rebate")

The deduction for investments in Spanish film productions in Barcelona ("Tax Rebate") is generated in each tax period for the production cost incurred in that period, and is applied from the tax period in which the production of the audiovisual work is completed.

In the case of animation productions, the deduction applies from the tax period in which the certificate of nationality is obtained.

The application of the deduction by the taxpayer(s) participating in the financing is incompatible, in whole or in part, with the deduction to which the producer is entitled.

DEDUCTION FOR INVESTMENTS IN FOREIGN FILM PRODUCTIONS IN BARCELONA ("TAX REBATE")"

Who is entitled to a deduction for investments in foreign film productions in Barcelona ("Tax Rebate")?

Producers registered in the Administrative Register of Film Companies of the Institute of Cinematography and Audiovisual Arts (ICAA) who are in charge of the execution of a foreign production of feature films or audiovisual works that allow the production of a physical support prior to industrial serialised production are entitled to a tax deduction for the expenses incurred in Spanish territory. It is therefore the spanish production company that carries out the audiovisual production which has to carry out all the procedures allowing access to the tax deduction.

What is the basis for the deduction for investments in foreign film productions in Barcelona ("Tax Rebate")?

The basis for the deduction for investments in foreign film productions in Barcelona ("Tax Rebate") is constituted by the following expenses incurred in Spanish territory that are directly related to the production:

Creative staff costs provided that they are resident for tax purposes in Spain or in a Member State of the European Economic Area with a tax residence in Spain or in a Member State of the European Economic Area with the 100,000 limit per person

Costs arising from the use of technical industries and other suppliers.

The amount of the deduction, together with the rest of the aid received, cannot exceed 50 per cent of the cost of production.

What is the deduction percentage and the maximum amount of the deduction? for investments in foreign film productions in Barcelona? ("Tax Rebate")

The amount of the deduction for investment in foreign film productions in Barcelona ("Tax Rebate") will generally be 30 per cent of the first million of the basis of the deduction, and of the 25 per cent on the excess of that amount.

The deduction may be applied provided that the expenditure incurred on Spanish territory is at least EUR 1 million. In the case of animation productions the minimum amount of expenditure is set at 200.000 euros.

The the maximum amount of the deduction may not exceed EUR 10 million for each production.

The amount of this tax deduction, together with any other aid received by the taxpayer, may not exceed 50 per cent of the cost of production.

Where the producer is responsible for the execution of visual effects services and the expenditure incurred on Spanish territory does not exceed 1.000.000 of euros: From 30 per cent of the basis for the deduction.

What is the deduction limit for investments in foreign film productions in Barcelona ("Tax Rebate")?

The deduction for investments in foreign film productions in Barcelona ("Tax Rebate") is excluded from the joint limit (25/50 per cent) provided for in the Corporate Income Tax Act for deductions that encourage the performance of certain activities, and therefore the deduction for expenses incurred in the execution of a foreign production is not computed for the purposes of calculating the limit.

If the amount of the deduction is insufficient, it cannot be claimed from the administration that granted the deduction, in accordance with the provisions of the Personal Income Tax Act.

What does CAMALEÓN CINEMA SERVICES offer to Spanish and foreign production companies that want to develop their audiovisual project in Barcelona ("Tax Rebate")?

At CAMALEÓN CINEMA SEVICES we have a film production team with extensive experience in the development of your audiovisual project, as well as a professional team of tax experts specialising in tax deductions and incentives for productions made in Barcelona, who advise production companies so that they can obtain the greatest tax advantages. We also provide services to obtain the necessary documents to obtain tax deductions and incentives (certificate of nationality y certificate attesting to the cultural nature of the work, among others). We are a Spanish production company registered with the Instituto de Cinematografía y de las Artes Audiovisuales, we provide the personnel and audiovisual equipment you need, so that the production company that wants to produce an audiovisual work in Barcelona, both in the case of Spanish and foreign productions, can carry out its project and also obtain the most advantageous taxation.

Check out our production services for film and advertising in Barcelona