Deduction for investments in Spanish film productions and audiovisual series

(Art. 36.1 LIS)

Beneficiaries of the deduction

Regulations: see art. 39.7 LIS

Since January 1, 2021, this deduction may be applied by, in addition to taxpayers who make Spanish productions of feature films, short films, and audiovisual series of fiction, animation, or documentaries ( producers ), taxpayers, businessmen or professionals, who participate in the financing of these productions made by another taxpayer ( investors ), when the latter provide amounts as financing, to cover all or part of the costs of the production without acquiring intellectual property or other rights with respect to the results thereof , the ownership of which must in all cases belong to the producer. These contributions can be made at any stage of production until the nationality certificate is obtained.

Deduction base

The basis for the deduction will be the total cost of production, as well as the costs of obtaining copies and the advertising and promotion costs borne by the producer up to the limit for both of 40% of the cost of production .

At least 50% of the deduction base must correspond to expenses incurred in Spanish territory .

The deduction base will be reduced by the amount of the subsidies received to finance the investments that generate the right to deduction.

Deduction percentage and maximum deduction amount

Percentage

Investments in Spanish productions of feature films and short films and audiovisual series of fiction, animation or documentary , which allow the creation of a physical support prior to their serial industrial production will entitle the producer or taxpayers who participate in the financing (investor), to a deduction that will be:

From 30% with respect to the first million of the deduction base.
From 25% on the excess of said amount.

Maximum deduction amount

The amount of this deduction may not exceed 10 million euros .

However, in the case of investor , although he may apply the deduction on the contributions disbursed in each tax period under the same conditions as if it had been applied by the producer, the maximum amount of the same may not exceed , in terms of quota, the result of multiplying by 1.20 the amount of the amounts disbursed by him for the financing of that . The excess may be applied by producer .

In summary
Deduction percentage	Maximum amount	Deduction base
Up to €1 million: 30% Regarding the excess of €1 million: 25%	€10 million In addition, in the case of the investor, the result of multiplying by 1.20 the amount of the sums disbursed by him in each tax period for the financing of the latter. Without exceeding the limits indicated below.	(+) Total cost of production together with costs of obtaining copies, advertising and promotion costs to be borne by the producer up to a limit of 40% of the cost of production. (-) Amount of subsidies received to finance investments that generate the right to deduction.

Limits

The amount of this deduction, together with the rest of the aid received by the taxpayer, may not exceed 50% of the cost of production . However, this limit is raised to 80% in the case of productions directed exclusively by persons with a degree of disability equal to or greater than 33% recognized by the competent body.

To apply this deduction, it is necessary to meet the established requirements.