Spanish Government Enhances International Tax Incentive & Approves Film Biz COVID-19 Support Measures

The Spanish government has approved an enhancement of its tax incentive for international productions.

The cap for qualifying spend will be lifted to €10M ($10.8M) for a single feature, up from the previous limit of €3M ($3.2M). The amount of possible rebate has also been raised to 30% on the first €1M, up from 25%, and then is set at 25% thereafter (up from 20%). Also, the amount of spend needed to be eligible for post-production and pre-production support has been lowered to €200,000 ($216,000).

Separately, the Spanish Ministry of Culture and Sport has approved a €76.4M ($82.51M) aid package in a bid to support its cultural industries through the tricky coronavirus lockdown period.

Measures for the film and TV biz include giving producers an extended period of time to put any projects that are receiving state support into production, and allowing them to claim 50% of government funding in advance to help support their companies before shooting resumes. Until August 30, films will be allowed to premiere on TV or online and still qualify for state support, breaking the typical theatrical requirement.

The government has also approved €13.3M ($14.4M) in grants for exhibitors. The country’s cinemas could partially re-open in the coming months as the government implements a gradual, multi-stage extraction from its lockdown. The ministry said the money can be used for new sanitary measures, and campaigns aimed at promoting venues once they re-open. To qualify for the aid, cinemas must meet a European film quota of 30% in the following year. Separate government financing is available to support other costs.

Source: Read Full Article