For investments in film productions, audiovisual series and live performances of performing arts and music

1. For investments in Spanish film productions and audiovisual series (art. 36.1 LIS)

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

   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 a 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 basis for assessment will be reduced by the amount of any grants received to finance investments entitling the producer to this deduction.

   In order to apply the deduction, certain requirements must be met.

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

2. For investments in foreign film productions in Spain (art. 36.2 LIS)

   Producers registered in the Administrative Registry of Film Companies of the Institute of Cinematography and Audiovisual Arts who are in charge of the execution of a foreign production of feature films or audiovisual works that allow the creation of a physical support prior to their serial industrial production 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. Expenses for creative staff, provided that 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 of the deduction base and 25% of the excess over said amount.

     The deduction will be applied provided that 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% of the cost of production.

   • 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 de 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. In order to apply the deduction, certain requirements must be met.

3. For investments in live productions of performing arts and music (art. 36.3 LIS)

   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 benefits obtained from the development of these activities in the year in which the right to the deduction is generated, the taxpayer allocates at least 50% to carrying out activities that give the right to apply 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 any subsidies received by the taxpayer, may not exceed 80% of said expenses.

4. Businessmen or professionals who participate in the financing of Spanish audiovisual productions and performing arts and musical shows (art. 39.7 LIS)

   The taxpayer who participates in the financing of Spanish productions of feature films, short films, audiovisual series of fiction, animation or documentaries, or in the production and exhibition of live shows of performing arts and music made by other taxpayers, may apply the deductions provided for in sections 1 and 3 of article 36 of the LIS, under the conditions and terms indicated therein, determining their amount under the same conditions as those applied to the producer, provided that they have been generated by the latter, when they contribute amounts destined to finance all or part of the production costs, as well as the expenses for obtaining copies, advertising and promotion charged to the producer up to the limit of 30% of the production costs, without acquiring intellectual property rights or other rights with respect to the results of the productions or shows, the ownership of which must in all cases belong to the producer.

   The amounts to finance production costs may be contributed at any stage of production, before or after the moment in which the producer incurs the aforementioned production costs, but never after the tax period in which the producer incurs them.

   Amounts to finance expenses for obtaining copies, advertising and promotion charged to the producer may be contributed before or after the producer incurs the aforementioned expenses, but never after the tax period in which the producer incurs them.

   The maximum amount of the deduction generated by the producer that the taxpayer participating in the financing may apply will be the result of multiplying by 1.20 the amount that the latter has contributed to finance the aforementioned production costs or the expenses for obtaining copies, advertising and promotion charged to the producer referred to in the previous paragraphs.

   The excess deduction may be applied by the producer who generated the right to it.

   The producer and the contributors who participate in the financing of the production must sign one or more financing contracts, which may also be signed at any stage of production, provided that they contain certain requirements.

   The application of the deduction by the taxpayer participating in the financing will be incompatible, totally or partially, with the deduction to which the producer would be entitled by application of the provisions of art. 36.1 and 3 LIS.