Loading...

Tax incentive

40% deduction for cinematographic investments and audiovisual works

The Regional Act 26/2016, Article 65.1; defines the tax incentive for film and audiovisual production. From January 2015, the Navarran tax incentive is one of the most favourable for application within Spain.

The tax incentive has two main areas of coverage and always affects Corporation Tax, in form of tax credit.

  • Producer or co-producer, with tax address in the region of Navarre (Article 65.1).
  • Company with tax address in the region of Navarre, which provides services to national or international producers (Article 65.2).

65.1

  • Areas of application: Investments in productions of films and television series (fiction, animation and/or documentaries).
  • Percentage of tax credit: 35% of deductible expenses.
  • Tax credit percentage: 40% of the deductible expenses (5 percentage points more than the first million of the deduction base)
    • In the following cases:
      • Productions whose only original version is in Basque.
      • Productions made exclusively by female directors.
      • Documentary productions.
      • Animated productions.
      • Productions directed by a person who has not directed or co-directed any feature-length film or audiovisual fiction, animation or documentary series.
    • Base of deductible expense: Total production cost, as well as expenses of copies, publicity and promotion.
    • Requirements: +40% of the base of deductible expense in Navarre.
    • Limits per production: 3 million euros.

65.2

  • Areas of application: Services for productions of films and television series.
    • Percentage of tax credit: 35% of deductible expenses.
    • Base of deductible expense: Total production cost, as well as expenses of copies, publicity and promotion
  • Requisites: Minimum filming time in Navarre of a week.
  • Limits per production: 3 million euros.