La Fábrika Films is well versed in navigating the complicated financing and co-financing of international co-productions within Spain. We are experienced with the regional and national cultural government grants as well as tax rebates, tax credits, and private investor options available.
The regional and national cultural grants are awarded annually, they are dispersed the year after they are awarded. These grants are available to national productions and international coproductions. Qualifications for these grants require a specific percentage of the crew and cast be Spanish, as well as fulfilling a cultural test. These grants are awarded to independent spanish producers for feature films and documentaries that are screened in film venues (screening are mandatory). The grant limit is 40% of the Spanish producer’s contribution to the budget and it is capped at 1,4 million euros. The Ministry of Culture through ICAA (Spain’s Audiovisual Arts and Film Institute) advances 70% of this grant.
Tax exemptions are available with no time limits or restrictions on funds.
Article 36.1. The Tax Shelter system is dedicated to Spanish films and tv fiction (including co-productions). The requirement for this classification is 50% of the film expense must be spent within Spanish territory.
– Spain mainland: 20% (25% for the first million) capped at 3 million euros.
– Navarra 35%
– Canary Islands 38% (40% for the first million) capped at 5,4 million euros.
– Two weeks of the shooting must be performed within Canary Islands territory. Additionally, one actor and one HOD must be locals.
On top of this, there is a 40% tax shelter for promotion and publicity expenses.
Article 36.2. Tax Rebate: Ideal for International Productions filming in Spain. Eligibility for a tax rebate require there is a mínimum budget of one million euros. For this, foreign producers obtain a tax rebate of:
– Spain mainland: 20% capped at 3 million euros.
– Navarra 35%
– Canary Islands 35% capped at 4,5 million euros.
The tax rebate funds would be delivered to the production company 18 months after the project has been filmed. La Fábrika Films advances the 15% or 35% (minus a small commission) once the shooting has commenced. Therefore the company would not have to wait for the funds.