2023 has begun with an improvement in the tax breaks for film productions. Specifically, the deduction ceiling for the Canary Islands rises from 18 to 36 million euros for animation feature films, live action and documentaries.
In the case of series, the deduction will be determined per episode with a limit of 10 million euros per episode, and 18 million for the Canary Islands.
The tax incentive in the Canary Islands is a 50% deduction for the first million euros of investment in eligible expenses and a 45% deduction for the rest of the budget, up to the limits on reimbursements. Spanish productions of feature films and short films, along with live action and animation series, documentaries and foreign productions of feature films and audio-visual works may opt for this incentive. In some cases, this incentive may rise to 54% for the first million euros for international productions. More detailed information on these incentives can be found on the following web page of the Tenerife Film Commission.
Furthermore, this most recent improvement also includes the removal of the 100,000-euro limitation per person for expenses on creative staff for the international production incentive. Doubts are also clarified on the financing contract for national productions.
These improvements were published in the Official State Gazette (BOE) on 28 December under Final Provision 5.2 of Act 38/2022, of 27 December. Ref. BOE-A-2022-22684.
In 2022, 24 productions took advantage of these tax incentives in Tenerife, 17 for international productions and 7 for national productions.
