Skip to main content
Practical Manual for Companies 2021.

Deduction for investments in Spanish cinematographic productions

Regulation: Article 36.1 LIS

  • To apply the deduction for investments in Spanish productions of feature films and audiovisual series of fiction, animation or documentaries, which allow the creation of a physical support prior to their serial industrial production carried out in the Canary Islands, entities must comply with the general requirements established for these deductions in article 36.1 of the LIS.

  • The deduction percentages established in article 36.1 of the LIS will be increased according to the provisions of article 94.1 a) of Law 20/1991. For these purposes, the following percentages will apply:

    • The 54 percent of the first million of the deduction base (the greater of: 30% x 1.8 = 54% or 30% + 20% = 50%). This 54 per cent may be applied provided that the aid intensity does not exceed 50 per cent of the eligible costs , as laid down in Article 54 of Commission Regulation ( EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

    • 45 percent on the excess of said amount (the greater of 25% x 1.8 = 45% or 25% + 20% = 45%)

  • The limits applicable to this deduction will be increased in accordance with the provisions of article 94.1.b) of Law 20/1991 , so it will be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) percent.

  • Furthermore, the Fourteenth Additional Provision of Law 19/1994 establishes, with effect for tax periods beginning on or after January 1, 2021, a specific limit for this deduction, indicating that its amount may not exceed the result of increasing by 80 percent the maximum amount set out in article 36.1 of the LIS, when it comes to productions carried out in the Canary Islands. Therefore, the maximum amount of this deduction will be 18 million euros (10 million euros x 1.8).