Deduction for investments in Spanish film productions and audiovisual series

Deduction beneficiaries

Regulations: see art. 39.7 LIS

Since January 1, 2021, this deduction is allowed to apply, in addition to taxpayers who make Spanish productions of feature films and short films and audiovisual fiction, animation or documentary series ( producers ), taxpayers, businessmen or professionals, who participate in the financing of these productions carried out by another taxpayer ( investors ), when the latter contribute amounts as financing, to cover the entire or part of the production costs without acquiring intellectual or other property rights regarding the results of the same , the property of which must in all cases belong to the production company. These contributions can be made at any stage of production until the nationality certificate is obtained.

Basis of deduction

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 base of the deduction will be reduced by the amount of 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 documentaries , which allow the preparation 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:

• 30% with respect to the first million base of the deduction.

• 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 the investor , although he can apply the deduction on the contributions disbursed in each tax period under the same conditions as if the producer had applied it, 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 it for the financing of that . The excess may be applied by the producer .

Limits

The amount of this deduction, together with the rest of the aid received by the taxpayer, may not exceed 50% of the production cost . However, this limit is raised to 80% in the case of productions directed exclusively by people with a degree of disability equal to or greater than 33% recognized by the competent body.

To apply this deduction, it is necessary to comply with the established requirements.