Investing in Spanish cinema is no longer just a cultural bet. In recent years it has become a very attractive tax tool for companies in any sector seeking to reduce their corporate income tax in a completely legal way.
Thanks to the tax incentives provided for in Spanish legislation, many companies are allocating part of their taxes to finance films and series produced in Spain, obtaining significant deductions in return.
A tax incentive designed to attract private investment
The Corporate Income Tax Law contemplates very relevant deductions for film and audiovisual production. The objective is to encourage the entry of private capital into the cultural sector, boosting the industry and employment.
The most interesting thing is that it is not necessary to be a producer or belong to the audiovisual sector to benefit from these deductions.
How can a company invest in film?
The most common formula is to do so as a company financing a production. This is mainly articulated through:
- Financing contracts with production companies
- Specific structures such as the EIGs (Economic Interest Groupings)
Through these channels, the company contributes capital to the project and can apply the tax deduction generated by the production directly to its corporate income tax.
What tax deduction can be obtained?
For Spanish film productions and series, the general deduction is:
- 30% on the first €1,000,000 of deduction base
- 25% of the remainder of the investment
With very high limits:
- Up to 20 million euros of production deductions
- In the case of series, up to 10 million euros per episode.
This makes it possible to adapt the investment to both SMEs and large companies, depending on the tax they want to optimize.
Requirements and certifications
In order to be able to apply the deduction, the production must:
- Comply with the requirements established in the tax regulations
- Obtain the cultural certificate issued by the ICAA.
- Correctly justify the investment and the expenses that form the basis for the deduction.
For this reason, these operations are usually channeled through specialized production companies and tax advisors, who take care of the entire legal and documentary structure.
Risks and aspects to take into account
Although it is a legal and increasingly used mechanism, it is not exempt from control:
- Documentation must be rigorous and consistent
- The Tax Agency reviews in particular structured transactions via EIGs
- It is essential to verify that the deduction can be effectively applied to the tax liability.
Specialized advice is key to ensure the fiscal security of the operation.
A fiscal alternative with real impact
Investment in Spanish cinema has become a tax-efficient alternative, allowing the transformation of taxes into direct support for the audiovisual industry. For many companies, it is a smart way to optimize their taxation while contributing to the cultural and economic development of the country.
Today, investing in film is also a strategic decision.