9.8.2.2.3. For investments in film productions

• Spanish film productions (art. 36.1 LIS)

  Investments in Spanish productions of feature films and short films and audiovisual fiction, animation or documentary series, which allow the preparation of a physical support prior to their serial industrial production, will entitle the producer to a 30% deduction with respect to the first million. of euros from the base of the deduction, and 25% on the excess of said amount. The amount of this deduction may not exceed 10 million euros.

  The basis of the deduction will be constituted by the total cost of production, as well as the expenses for obtaining copies and the advertising and promotion expenses borne by the producer up to the limit for both of 40% of the production cost. At least 50% of the deduction base must correspond to expenses incurred in Spanish territory. The basis for assessment will be reduced by the amount of any grants received to finance investments entitling the producer to this deduction.

  The amount of this deduction, together with the rest of the aid received, may not exceed 50 percent of the production cost. However, this limit will be raised for certain productions.

• Foreign film productions in Spain (art. 36.2LIS)

  Producers registered in the Administrative Registry of Cinematographic Companies of the Institute of Cinematography and Audiovisual Arts who are responsible for the execution of a foreign production of feature films or audiovisual works that allow the preparation of a physical support prior to their industrial production. serial will be entitled to the deduction provided for in this section for expenses incurred in Spanish territory.

  The basis of assessment will include the following expenses made in Spanish territory directly relating to the production:

  1. The expenses of creative personnel, provided they have tax residence in Spain or in a member state of the European Economic Area, with a limit of 100,000 euros per person.
  2. Expenses deriving from the use of technical industries and other suppliers.

  The deduction amount will be:

  • 30% of the first million base of the deduction and 25 percent of the excess of said amount.

    The deduction will be applied whenever the expenses incurred in Spanish territory are at least 1 million euros. However, in the case of animation productions, such expenses will be at least 200,000 euros.

    The amount of this deduction may not exceed 10 million euros for each production carried out.

    The amount of this deduction, together with the rest of the aid received by the contributing company, may not exceed 50 percent of the production cost.

  • 30% of the deduction base, when the producer is responsible for the execution of visual effects services and the expenses incurred in Spanish territory are less than 1 million euros.

    The amount of this deduction may not exceed the amount established by Commission Regulation (EU) 1407/2013, of December 18, 2013, relating to the application of articles 107 and 108 of the Treaty on the Functioning of the European Union to "minimis" aid.

    The deduction provided for in this section is excluded from the limit referred to in the last paragraph of section 1 of article 39 of this Law. This deduction will not be taken into account for the purpose of the calculation of the aforementioned limit.

• Expenses in the production and exhibition of live shows

  The costs incurred for producing and exhibiting live shows in the performing arts and music will be subject to a 20% reduction.

  The base of the deduction will consist in the direct costs of an artistic, technical and promotional nature, incurred in such activities.

  The deduction generated in each tax period may not exceed the amount of 500,000 euros per taxpayer.

  The following requirements must be met for the application of this deduction:

  • The taxpayer must have a certificate to prove this, under the terms established by Ministerial Order, issued by the National Institute of Performing Arts and Music.
  • That, of the profits obtained in the development of these activities in the year in which the right to deduction is generated, the taxpayer allocates at least 50% to the performance of activities that give the right to the application of the deduction provided for in this section. The time period for meeting this obligation is from the start of the fiscal year in which the aforementioned profits are acquired, and 4 years following the close of the same fiscal year.

  The base of this deduction will be reduced by the amount of the subsidies received to fund such expenses.

  The amount of the deduction, together with the subsidies received by the taxpayer, may not exceed 80 percent of said expenses.