30% TAX REBATE IN COMMON TERRITORY
35% TAX CREDIT IN NAVARRE REGION
50% TAX REBATE IN THE CANARY ISLANDS
Spain offers tax incentives for international films and TV series which, when you add it to the many benefits offered by this country and its audiovisual industry, make it one of the most competitive destinations in the area. The current applicable legislation in common territory (except for Navarre region) is: Article 36.2 Law 27/2014 dated the 27th of November, on Corporation Tax. Rebates for investments in film and series audiovisual productions. These incentives are applicable to the registered Spanish producers, who are managing a foreign production. This means as the "service company" which takes on the executive production and will carries out the tax procedures involved in applying for a tax rebate.
SPAIN General incentive: 30% Tax Rebate
General incentive of 30% in the first million euros and 25% for the rest of the expenditure made in Spain.
Foreign production types:
Feature length films, television series, animated films and documentaries. Maximum rebate limit: 10 million Euros.
Beneficiaries: Spanish companies which are registered in the Film and Audio-visual Arts Institute's register of audio-visual producers.
Rebate base: eligible expenses incurred in Spain.
Eligible expenses: creative staff with a registered address in the country or in another European Union member state, up to a maximum of €100,000 per person/technical or complementary service.
Minimum expense incurred in Spain: 1 million Euros and 200.000 euros for Animation and VFX projects.
Procedure: the refund must applied for by the Spanish company, during the month of July of the year after the end of filming.
The law includes further details which are not listed here, so we do recommend you read Article 36.2 in its entirety and the replies posted by the Inland Revenue Agency.
NAVARRE Incentive: 35% Tax Credit
As Navarre is a chartered territory with its own taxation system, it also has its own Corporation Tax Law which applicable tax benefits are subject to in this community: Article 65.2. Regional Order 24/1996, dated the 30th of December, on Corporation Tax (Text applicable on the 31st of December 2016) Rebate for investments in film and series audiovisual productions.
Beneficiaries: Companies which are based in Navarre and which are registered in the Film and Audiovisual Arts Institute's register of audiovisual producers.
Shoot duration: at least a week.
Procedure: the incentive goes up to 35% for a mixed modality rebate of the corporation tax plus fiscal credit. If the tax to be paid is not high enough to cover the total amount of fiscal credit, the rest could be deducted from the Income Tax over the following years for a maximum of 15 years.
The law includes further details which are not listed here, so we do recommend you read Article 65.2 of the Regional Order 24/1996 on Corporation Tax, dated the 30th of December, in its entirety.
Canary Islands incentive: 50% Tax Rebate.
When shooting in the Canary Islands, there are special conditions involved if you want to access tax incentives as the region complies with two of the conditions set by the European Commission to qualify for this tax system: it is an insular and outlying territory. The same common law is applied with a series of mark-ups.
General incentive: 50% in the first million euros and 45% for the rest of the expenditure made in Spain.
Maximum rebate limit: 5.4 million Euros. (the maximum amount of deduction will likely be increased to EUR 18 million in the short term).
Beneficiary: companies with a registered address in the Canaries, which are registered in the Film and Audiovisual Arts Institute's register of audiovisual producers, and which are managing the production overseas.The law includes further details which are not listed here, so we do recommend you read Article 36.2 in its entirety and the replies posted by the Inland Revenue Agency in response to binding queries.