Deductions to encourage certain activities
Please find information on the deductions you may be entitled to if you carry out certain activities
Deduction for investment in cinematographic production
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 deduction:
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30 percent with respect to the first million base of the deduction.
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25 percent on the excess of said amount.
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 percent of the production cost.
At least 50 percent of the deduction base must correspond to expenses incurred in Spanish territory.
The amount of this deduction may not exceed 10 million euros. With effects for tax periods that begin on or after January 1, 2023, the amount of this deduction may not exceed 20 million euros. In the case of audiovisual series, the deduction will be determined per episode and the limit referred to in the previous paragraph will be 10 million euros for each episode produced.
In the case of a co-production, the amounts indicated in this section will be determined, for each co-producer, based on their respective percentage of participation in it.
The production costs incurred in each tax period will qualify for this deduction, although it will be applied with effect from the tax period in which production of the work is concluded. Nonetheless, in the case of animations, the deduction will be applied with effect from the tax period in which the certificate of Spanish nationality is obtained.
The basis for assessment will be reduced by the amount of any grants received to finance investments entitling the producer to this deduction.
The application of this deduction is extended to taxpayers who participate in the financing of said productions.
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 to:
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85 percent for short films.
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80 percent for productions directed by a person who has not directed or co-directed more than two feature films qualified for commercial exploitation in cinema exhibition halls, whose production budget does not exceed 1,500,000 euros.
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80 percent in the case of productions shot entirely in one of the co-official languages other than Spanish that are projected in Spain in said co-official language or with subtitles.
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80 percent in the case of productions directed exclusively by people with a degree of disability equal to or greater than 33 percent recognized by the competent body.
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75 percent in the case of productions made exclusively by female directors.
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75 percent in the case of productions with a special cultural and artistic value that need exceptional financing support according to the criteria established by Ministerial Order or in the corresponding calls for aid.
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75 percent in the case of documentaries.
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75 percent in the case of animation works whose production budget does not exceed 2,500,000 euros.
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60 percent in the case of cross-border productions financed by more than one Member State of the European Union and in which producers from more than one Member State participate.
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60 percent in the case of international co-productions with Ibero-American countries.
The following requirements must be met for the application of this deduction:
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That the production obtains the corresponding certificate of nationality and the certificate that accredits the cultural character in relation to its content, its connection with the Spanish cultural reality or its contribution to the enrichment of the cultural diversity of the cinematographic works that are exhibited in Spain, issued by the Institute of Cinematography and Audiovisual Arts, the certificates required for its application are binding for the AEAT regardless of their date of issue.
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A new copy of the production in mint condition must be lodged with the Spanish Film Archive or the film archive officially recognised by the respective Autonomous Community, as specified in Order CUL/2834/2009.
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 a deduction for expenses incurred in Spanish territory:
a) 30 percent of the first million base of the deduction.
b) 25 percent of the excess of said amount.
The deduction will be applied whenever such expenses are at least 1 million euros. However, for pre-production and post-production expenses for animation and visual effects carried out in Spanish territory, the limit is set at 200,000 euros.
The basis of assessment will include the following expenses made in Spanish territory directly relating to the production:
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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. With effect for tax periods beginning on or after January 1, 2023, the limit of 100,000 euros per person for creative personnel expenses is eliminated.
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Expenses deriving from the use of technical industries and other suppliers.
The amount of this deduction may not exceed 10 million euros for each production carried out. With effects for tax periods beginning on or after January 1, 2023, the amount of this deduction may not exceed 20 million euros for each production carried out. In the case of audiovisual series, the deduction will be determined per episode and the limit referred to in the previous paragraph will be 10 million euros for each episode produced.
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.
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.
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 cannot exceed the amount of 500,000 euros per taxpayer.
The base of this deduction will be reduced by the amount of the subsidies received to fund such expenses.
Together with the subsidies received by the taxpayer, the amount of this deduction cannot exceed 80% of said expenses.
The application of this deduction is extended to taxpayers who participate in the financing of said productions.
The following requirements must be met for the application of this deduction:
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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.
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The taxpayer must use at least 50% of the profits acquired, in the fiscal year in which the right to the deduction is generated, to carry out activities that give rise to this deduction. 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.