At a very generous 35%, The Canary Islands offer the international film producer one of the highest tax incentives in the world, making the islands an even more attractive location for your next movie.
How does it work?
This scheme is open to foreign productions and includes feature films, documentaries, drama series and animation films.
To take advantage of the tax breaks in the Canary Islands, you would need to employ the services of a Spanish production company, with tax domicile in the Canary Islands and registered with the Instituto de la cinematografía y de las artes audiovisuales (ICAA). FilmCanaryIslands S.L. meets all these prerequisites, and has more than 10 years production experience in the Canary Islands.
The minimum amount that a producer must invest is set at 1 million euros, and the maximum amount of tax that can be returned is capped at 4.5 million euros, giving a maximum base limit of 12,857,143€. Eligible expenditure is considered to be:
* Expenses in the Canary Islands directly related to the production.
* Expenditure on creative staff provided that their tax residence is in Spain or in a European Economic Area Member State,
capped at 50,000€ per person.
* Expenditure on technical industries and other suppliers.
The final amount of tax, 35% of eligible expenditure, is deducted from the corporate income tax of the appointed local production company at the end of the tax period in which the production service is completed.
Once the scheme has been approved for a production, the letters of guarantee should be enough to raise capital in advance from a financial institution, if needed.