Deduction for investments in Spanish film productions and audiovisual series

Beneficiaries of the deduction

Regulations: see art. 39.7 LIS

1. Producers: taxpayers who produce Spanish feature films, short films, and audiovisual fiction, animation, or documentary series.

2. Funders: Since January 1, 2021, entrepreneurs or professionals who participate in the financing of Spanish productions of feature films, short films, audiovisual fiction series, animation or documentaries are allowed to apply this deduction, under the same conditions as the producers who generate the right to it, when the following circumstances occur:

   • That they provide amounts in the form of financing, to cover all or part of the production costs as well as the costs of obtaining copies, advertising and promotion at the expense of the producer up to the limit of 30% of the production costs.

   • That they do not acquire intellectual property rights or any other rights regarding the results of production , the ownership of which must in all cases belong to the producer.

   • That they are not linked , in the sense of article 18 of the LIS , with the taxpayer who generates the right to the deduction (the producer).

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 .

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.