45% tax credit per investment in spanish productions or coproductions
Twenty points above the rest of Spain
Deduction percentages are 45% for the first million Euros, and 40% from the second million, capped at 5.4 million euros.
What type of production qualifies for the allowance?
– Feature and short films for cinema release.
– TV, animation and documentary series.
Provided that those productions obtain the Canaries Audiovisual Work* certificate, granted by the Government of the Canary Islands through Canarias Cultura en Red, as well as the other certificates of Spanish nationality and culture, granted by the Institute of Cinematographic and Audiovisual Arts (ICAA).
* Canaries Audiovisual Work Certificate
In order to obtain this certificate, the company must be registered in the Canaries Audiovisual Companies Registry. The production must have Spanish nationality (3) in addition to fulfilling the following requirements:
- Shoot a minimum of two weeks in the Canaries, either interiors or exteriors
- Hire local professionals (minimum one head of department, a leading or supporting actor resident in the Canaries)
- Co-productions will be considered Canaries productions whenever the Canaries producer provides above 20% of the cost of the production
* In the case of financial co-production, the Canaries co-producer’s contribution will not be under 10% or above 25% the cost of the production
What kind of expenses can be deducted?
The deduction base consists on the total cost of the production including the cost of making copies and publicity and promotion expenses-which are capped at 40% of the cost of production.
Grants obtained to finance investments qualifying for deduction are not deductible.
At least 50% of the deduction base should correspond to expenses made in Spanish territory.
(1) RDL 15/2014, 19th December, ammending the Canary Islands Economic and Fiscal Regime
(2) Law 27/2014, 27th November, Corporate Income Tax
(3) Under the Spanish Film Act a Spanish film is that made by a Spanish production company or that made as co-production and which has been granted the Spanish nationality certificate by the ICAA (Law 55/2007, 28th December, Cinema)
Who can benefit from the tax credit?
Investors whose economic activity is settled in the Canary Islands