50-45% TAX CREDIT PER INVESTMENT IN SPANISH PRODUCTIONS OR COPRODUCTIONS - Film Incentives - Tenerife Film Commission

50-45% Tax Credit Per Investment in Spanish Productions or Coproductions

Twenty points above the rest of Spain
45-40% Tax Credit Per Investment in Spanish Productions or Coproductions
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For Spanish productions made in the Canary Islands and with the Canarian Certificate of Audiovisual Production, deduction percentages are 50% for the first million Euros, and 45% from the second million, capped at 18 million euros* (so the maximum deduction base is 39,888,888 €) (1), (2), (4),(5) and (9). In certain cases, if the intensity level allows it, the incentive can be 54%**.


What type of production qualifies for the allowance?

  • Films for cinema release
    • TV, animation and documentary series
    • Short Films

    Provided that those productions obtain the Canarian Certificate of Audiovisual Production***, 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).

    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 per cent of the cost of production- met by the producer. 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.

    Who can benefit from the tax credit?

    Investors whose economic activity is settled in the Canary Islands.

    What are other requirements to qualify?

    The total of aids received by the taxpayer, including deductions and subsidies, cannot exceed, in general terms, 50% of the production cost.  However, it is increased for several cases**:   

    a. Short films: 85%

    b. Productions whose director has not directed or co-directed more than two films for  commercial exploitation in movie theaters, and whose production budget does not  exceed EUR 1.5 million: 80% 

    c. Productions entirely shot, shown or subtitled in any of the co-official languages  other than Spanish: 80% 

    d. Productions directed exclusively by people with disabilities: 80%

    e. Productions directed exclusively by women: 75%

    f. Productions of special cultural value that require exceptional financial support according to criteria established by Ministerial Order or in the corresponding calls for grants: 75% 

    g. Documentaries: 75%

    h. Animation works not exceeding a production cost of EUR 2.5 million: 75% 

    i. Crossborder productions financed by more than one Member State of the European  Union and involving producers from more than one Member State: 60% 

    j. International co-productions with LATAM countries: 60% 

    The same investment cannot involve more than one deduction for the same company, nor can the deduction be applied to more than one company. 

    To have access to this deduction, and for greater legal certainty, you need to apply in advance to Agencia Estatal de Administración Tributaria (AEAT) [Inland Revenue Office] that will answer within 20 days.

    *** Canarian Certificate of Audiovisual Production (6, 7 and 8)   ​

    In order to obtain this certificate, the company must be registered in the Canarian Certificate of Audiovisual Production. The production must have Spanish nationality in addition to fulfilling the following requirements:

    1. Shoot a minimum of two weeks in the Canaries the first unit, either interiors or exteriors​ for:

      Fiction feature films:
      • 11 days for budgets below two million euros.
      • 14 days for budgets from two to four million euros.
      • 16 days for budgets from four to eight million euros.
      • 18 days for budgets from 8 million euros on.
      • Or 9 shooting days provided that there is a minimum proven expenditure of 15% of the budget on postproduction in the Canary Islands.
      Animation:
      • 15% of production time in the Canaries for works with a budget above five million euros and 20% for works whose budget is below that figure.
      • Rendering cannot exceed 20% of the production time.
      Documentaries: no minimum time

      Series:
      • 20% of the season shooting time is shot in the Canaries.
      • Or 15% of the season shooting time provided that there is a minimum proven expenditure of 15% of the budget on postproduction in the Canary Islands.

      2. Hiring local professionals whose tax residency is in the Canary Islands. At least:

        For feature films and drama series:
        • A person from the creative staff (3) (Authors: director, scriptwriter, director of photography, score composer, actors and artistes and technical creative staff: chief editor, artistic director, sound engineer, costume designer, head editor, art director, head of sound, costume designer and head of prosthetic).
        • Nine technical people from a minimum of five different work teams in production; locations, direction; camera; lighting and grip; sound; art; costume; make-up and hairdressing; special effects; postproduction and effects; stunts.
        For documentaries:
      • A minimum of two people in the capacity of director, scriptwriter, score composer, director of photography or executive producer.
      For animation:
      • A head of team, failing that, an animation lead, senior animator or dubbing actor of leading or supporting role.
    • Hire local professionals (minimum one head of department, a leading or supporting actor resident in the Canaries)

    3. Co-productions will be considered Canaries productions whenever the Canaries producer provides above 20% of the cost of the production.

    4. 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.

    5. Delivery of promotional material.​


    See the procedure on this link.​

    More information through our advisory firms.​

    ​​​ 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).
    4) Law 3/2017, 27th June, General State Budget.
    (5) Law 8/2018, of 5 November, amending the Canary Islands Economic and Fiscal Regime.
    (6) Decree 88/2019, of 22 May, amending Decree 18/2009, of 10 February, which creates the Canary Islands Registry of Audiovisual Companies and Works and governs the procedure to obtain the Canarian Audiovisual Work Certificate regarding feature films, short films and fiction series, animation or documentaries produced in the Canary Islands.
    (7) Decree 18/2009, of 10 February, which creates the Canary Islands Registry of Audiovisual Companies and Works and governs the procedure to obtain the Canarian Audiovisual Work Certificate regarding feature films, short films and fiction series, animation or documentaries produced in the Canary Islands.
    (8) Order of 5 December 2016, amending the Order of 22 May 2015, on the criteria to qualify for the Canarian Audiovisual Work Certificate.
    (9) Royal Decree-law 17/2020, of 5 May, approving support measures for the cultural sector and tax measures to deal with the economic and social impact of the COVID-2019​​

    * The deduction limit is pending publication through subsequent legislative amendments.
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