Filming incentives in the Iberian Peninsula: Portugal vs. Spain
Portugal and Spain offer highly competitive financial incentives, making the Iberian Peninsula a prime destination for international film and television productions. Portugal offers a cash rebate system, while Spain provides tax incentives. Let's break down the key features of each to help you determine which might be the best fit for your project:
Portugal and Spain offer a number of financial incentives to filmmakers based on the size of the production, cultural and economic impact and other factors. There are even breaks for productions utilizing sustainable practices.
Our job is to help you understand and utilize these incentives, and expedite the paperwork that is needed to enjoy the benefits.
Which system is right for you?
Both Portugal and Spain offer compelling incentives for international productions.
Portugal's Cash Rebate in Detail:
Rebate: Up to 30% of qualifying Portuguese production expenses (QPPE). This applies to eligible costs incurred within Portugal.
Minimum QPPE: €500,000 for fiction films and animation projects, and €250,000 for documentaries and post-production work. This lower minimum spend compared to Spain can be particularly advantageous for smaller-budget productions.
Unique Upfront Payment System: Portugal offers a unique upfront payment system in installments, significantly improving cash flow for productions:
20% paid before shooting commences.
35% paid at the start of shooting.
30% paid at the end of shooting.
The final 15% is paid after the audit is completed.
Annual Budget: The annual budget allocated for the cash rebate system is €14 million for 2024 (this is subject to change, so it's always best to check the latest figures with the Portugal Film Commission).
Maximum Rebate per Project: The maximum rebate available per project is €1.5 million.
Which is right for you?
Portugal's system with its upfront payments and lower minimum spend may be more suitable for independent films, documentaries, and smaller-budget productions that benefit from improved cash flow
Spain's Tax Incentives in Detail:
Tax Incentive: Up to 30% on the first million euros of expenses incurred in Spanish territory.
Minimum Spend: A minimum spend of €1 million within Spain is required to qualify.
Regional Variations: Spain offers higher tax incentive rates in specific regions, making them particularly attractive for productions that can film in those areas:
Canary Islands: Offer the most generous incentives, with up to 54% on the first million euros and 45% on remaining costs.
Navarra: Provides incentives of up to 40%.
Basque Country (Bizkaia, Gipuzkoa, Araba): Offers the highest incentives in mainland Spain, reaching up to 70% in some cases.
Application Process: The application process for Spanish tax incentives can be more complex compared to Portugal's rebate system and often requires working with a local tax advisor.
Which is right for you?
Spain's regional incentives offer the potential for higher rebates, making them attractive for larger productions that can strategically plan their filming locations.
4 more considerations for filming in the Iberian Peninsula:
Beyond the financial incentives, both countries offer:
Diverse Filming Locations: From stunning natural landscapes to historic cities and modern architecture.
Skilled Crews: Experienced and professional film crews are readily available in both countries.
Modern Studio Facilities: Including the cutting-edge, sustainable Tage Studios in Portugal, which will be the largest studio in Europe when completed.
Application Process: It's important to work with a local production services company that understands the specific application process for each country's incentives to ensure you meet all eligibility requirements.
Get in touch.
Contact us today for a free consultation to discuss your project and find the right set of incentives.