The Canary Islands have a specific tax regime (REF) which allows them to offer international production companies greater tax incentives than in the rest of Spain, being one of the largest in the world.
Fiscal Incentives for Productions
54-45% deduction for foreign productions (tax rebate)
- Producers providing services to foreign films
- Tax reduction of 54% of eligible expenditure in the Canary Islands for the first million euros and 45% thereafter.
- Minimum expenditure: EUR 1 million
- 54% on the first million euros when expenditure in the Canary Islands exceeds 1.9 million euros.
Eligible expenditure in the Canary Islands directly related to production
- Creative team with residence in the European Community
- Spending on technical industries and other suppliers
- The local production or service company must be resident for tax purposes in the Canary Islands.
- The total cost of production will be at least EUR 2,000,000.
- Investments in feature film, TV series, animation, documentary and short film production
- 54-45% tax credit for investments in Spanish productions and co-productions.
- Investments in the production of feature films, TV series, animation, documentaries and short films.
In addition, audiovisual works, except for advertising works, which are produced through a production service, can benefit from 0% IGIC.
If you need more information, please do not hesitate to contact Tom Perry, our EP in the Spanish office.