Financial Incentives

One of Europe’s most powerful tax incentives scheme

The Canary Islands have one of Europe’s most powerful tax incentives scheme for film and TV production.

Many international projects are heading for the Canary Islands, which boast generous rebates and have recently housed Ron Howard’s “Heart Of The Sea” for Warner Bros on La Gomera and Lanzarote, and Ridley Scott’s epic “Exodus: Gods And Kings” for 20th Century Fox on Fuerteventura, along with a large array of medium to low budget features and TV productions.

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Up to 45% tax break for Spanish co-productions

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Rebate for international non-Spanish productions

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Reduced corporation tax

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Zero VAT rate for international productions

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Up to 45% tax break for Spanish co-productions

Canary Islands’ singular tax regime offers up to 45% tax credit for both film and television productions investment from island-based companies. This new tax break edges up to 45% for the first million euros of investment and to 40% for the rest. Is is capped at 5.4 million euros per production, so it is most suitable for budgets up to 14.1 million euros. Since the Canary Islands incentive requires producers to raise private capital from island-based investors to fund up to 45% of a picture’s budget, gaining access to these local investors can be a challenge. We have developed a solid network of local investors interested in film production and we are looking for projects with international market potential to co-produce.

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40% rebate for international non-Spanish productions

Spain’s government offers a 40% rebate on local expenditure to international shoots lensing in the Canary Islands, provided a qualified local expenditure of at least €1 million. This hefty tax rebate has a ceiling of €4.5 million per production and requires teaming up with a local production service company. It covers feature films, TV series and TV movies (both real-action and animation). We have worked over the past years on the most demanding international productions shot in the islands, from Ridley Scott’s Hollywood blockbuster “Exodus: Gods and Kings” to award-winning European and Latin-American art-house co-productions. Therefore we can offer you a reliable, well seasoned local partner for your international shooting or animated production in the Canary Islands, with highly efficient and competitive rates to add to that hefty 35% rebate. Plus our partnerships with the Canary Islands Audiovisual Cluster, The Canary Islands Society of Economic Development (Canary Islands Regional Government) and other regional institutions allow us to offer first hand assistance and a seamless and efficient management of local certificates and tax incentive applications.

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Reservation of Canaries Investment (RIC) tax break

Under the RIC system, Canary Islands taxpayers may earmark up to 90% of their payments for film and TV investment, recouping before projects’ producers. Canary Islands Connection has a solid experience on financing films using the Canary Islands’ RIC tax investment vehicle due to a strong connection to Canary Islands-based high net-worth taxpayers interested in film production.

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Reduced corporation tax of 4%

The Canary Islands have the most attractive corporation tax incentive in Europe: the Canary Islands Special Zone (ZEC) that allows a fixed tax rate of 4% compared the European average of between 25% and 30%. Alongside other advantages, it also provides maximum legal security and the repatriation of dividends tax-free.

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Zero VAT rate for international productions

Canarian Indirect Tax (IGIC) replaces the Community Value Added Tax (VAT) in the Canary Islands. The nature of the IGIC is similar to VAT, but with important differences, such as a brand new zero rate for international film productions, both feature films and TV series.