Spain Film Tax Incentive

How Does Spain's Film Tax Incentive Work?

Spain offers a multi-layered incentive system where national tax credits combine with powerful regional programs. The result: some of the highest effective incentive rates in Europe, particularly in the Canary Islands and Basque Country. The national program is administered by the ICAA (Institute of Cinematography and Audiovisual Arts).

National Tax Credit

The national incentive provides 30% on the first EUR 1 million of eligible local spend by an international production and 25% thereafter. The cap is EUR 20 million per feature film and EUR 10 million per TV episode.

Regional Incentives

Canary Islands

The Canary Islands offer the highest rates in Spain: 54% on the first EUR 1 million of eligible expenditure and 45% on the remainder. Caps are EUR 36 million per feature and EUR 18 million per series episode. Minimum eligible spend is EUR 1 million (EUR 200,000 for animation/post-production).

Basque Country

The Basque Country offers up to 60% tax incentive, with an additional 10% possible for productions in the Basque language. This makes it one of the highest film incentive rates available anywhere in the world.

Navarre

Navarre offers up to 50% tax rebate for qualifying productions.

Why Productions Choose Spain

Climate. Over 300 days of sunshine annually in many regions, reducing weather-related production delays.

Location diversity. Mediterranean coastline, desert landscapes (Almería, used for countless Westerns), historic cities (Barcelona, Madrid, Seville), and Atlantic islands.

Cost efficiency. Spanish crew rates and local costs are lower than UK, France, and Germany, stretching production budgets further.

Spain Film Tax Incentive: Key Facts

• National rate: 30% (first EUR 1M) + 25% (remainder)
• Canary Islands: 54% (first EUR 1M) + 45% (remainder)
• Basque Country: Up to 60% (+10% for Basque language)
• Navarre: Up to 50%
• National cap: EUR 20M per feature
• Official resource: Spain Film Commission