Tax Incentives for Film Production in the Canary Islands.
The Canary Islands offer a range of attractive tax advantages within the legal framework of the EU and Spain.
This makes the Canary Islands one of the best places to film in Europe as in addition to the above, the islands boast great climate, superb natural conditions, a full array of sceneries and a solid film sector including equipment and qualified experienced professionals ready to take care of your every need.
The principal three tax breaks are as follows:
- DEDUCTION FOR INVESTMENT IN FOREIGN PRODUCTIONS: 35%deduction on the eligible expenditure in the Canaries. In addition, they must be registered with the Film and Audio Arts Institute (ICAA) and have executed a film (feature film, animation, drama series, and documentaries). This incentive is capped at 4.5 million Euros, which means the maximum deduction base is 12.8 million Euros.
- 40% – 38% TAX CREDIT FOR INVESTMENT IN SPANISH PRODUCTIONS OR CO-PRODUCTIONS (theatrical feature films, drama series or documentaries) 40% deduction on the first million Euros and 38% from then on of production costs, the expenses on making copies and expenses on publicity and promotion paid by the producer. This incentive is capped at 5.4 million Euros, which means the maximum deduction base is 14.1 million Euros.
- CANARIES SPECIAL ZONE (ZEC) A company doing production and other activities related to the film sector can be established as a ZEC company and pay a reduced rate of 4% on Corporate Income Tax instead of the general 25% rate currently in force in Spain, provided that they comply with the minimum requirements, which include having a registered office in the Canaries; investing a minimum of between 50,000 and 100,000 euros on capital expenditure depending on location; create between 3 to 5 jobs depending on location.
For more information and assistance contact EBF Consulting www.ebfconsulting.com
Information by E.B.F Consulting S.L. E.B.F Consulting has been providing tax and accounting services to expatriates in Europe since 1999. Office is based in Lanzarote, Spain. Visit www.ebfconsulting.com for more details. Copyright © E.B.F Consulting 2018
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