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For Film Production in the Spain

Mainland Spain referred to as the Peninsula due to its location has a 20% tax rebate for foreign productions.

For Film Production in the Canary Islands

The Canary Islands offer a range of attractive tax advantages which are successfully applied thanks to the Canaries Economic and Tax Regime (REF)¹ within the legal framework of the EU and Spain.

This makes the Canary Islands one of the best places to film in Europe as in addition to the above, the islands boast great climate, superb natural conditions, a full array of sceneries and a solid film sector including equipment and qualified experienced professionals ready to take care of your every need.

Our tax breaks are as follows:

1. Deduction for investment in foreign productions: 40%
2. Deduction for investment in Spanish productions or co-productions: 45% – 40%
3. The Canary Islands Special Zone (ZEC)², to set up your company in the Canaries at a reduced rate of 4% Corporate Income Tax, compatible with the above mentioned tax breaks.

According to the Canary Islands REF, the specific incentives on film production in the Corporate Income Tax Law³, are increased by 20 percentage points and the limit is 80% higher than in the rest of Spain in general.

1. 40% Tax Rebate for Foreign Productions

Producers with tax domicile in the Canary Islands who are in charge of executing a foreign production (production service companies)benefit from a 40% deduction on the eligible expenditure in the Canaries. This incentive is capped at 5.4 million Euros, which means the maximum deduction base is 13.5 million Euros.

What kind of productions qualify?
Foreign productions of feature films leading to a master copy to be subsequently mass produced. Therefore, feature films, animation films, drama series and documentaries are included.

What kind of expenditure is eligible?
Expenses in the Canary Islands directly related to the production: Expenditure on creative staff provided that their tax residence is in Spain or in a European Economic Area Member State,capped at 100,000€ per person. Expenditure on technical industries and other suppliers.

Who can benefit from this deduction?
Production companies or production service companies whose tax domicile is in the Canary Islands and are registered in the Film and Audiovisual Arts Institute (ICAA) and have executed a foreign film.

How do I get the tax deduction?
The amount of the tax break (40% of eligible expenditure) is deducted from the corporate income tax in the tax period in which the production service is completed.

2. 45%-40% Tax Credit for Investment in Spanish Productions or Co-Productions⁵

In the case of national productions shot in the Canary Islands which obtain the Canaries Film Certificate, the deduction percentage is 45% on the first million Euros and 40% from then on.

This incentive is capped at 5.4 million Euros, which means the maximum deduction base is 13,375,000 Euros.

What kind of production can benefit from the incentive?
• Films for cinema release
• TV, animation and documentary series
• Provided that they are granted the Canaries Film Certificate⁶, issued by the Culture Department of the Government of the Canary Islands, apart from the nationality and cultural certificates issued by the Institute of Film and Audiovisual Arts (ICAA).

What kind of expenditure is eligible?
The deduction base is made up of the production costs, the expenses on making copies and expenses on publicity and promotion paid by the producer. Both are capped at 40 per cent of the production cost. Grantsobtained to finance investments qualifying for deduction are not deductible.
At least 50 per cent of the deduction base must be of expenditure in Spain.

Who can benefit from the deduction?
Investors whose economic activity is based in the Canary Islands.

*Canaries Film Certificate
To obtain the Canaries Film Certificate, the company must be registered in the Registry of Canary Islands Film Companies. The production must be Spanish and it must also meet the following requirements:

– The first unit must film a minimum of 11 effective days in the Canaries, either in interior or exterior locations, except for:

o Animation: 20% of production time in the Canaries
o Documentaries: no minimum time
o Short Films⁷: 50% of the shoot must take place in the Canaries
o TV Series: 20% of the season must be shot in the Canaries

– Hire local crew (minimum one head of department, or a leading and/or supporting actor with tax residence in the Canary Islands) Co-productions will be regarded Canaries productions provided that the Canaries producer takes care of more than 20% of the cost of production.
– In the case of financial coproduction, the contribution of the Canaries producer must not be below 10% or above 25% of the cost of production.
– The application is made by the production office based in the Canary Islands which must be registered in the Canary Islands Film Companies Registry.

How is the tax deduction obtained?
The tax deduction is a tax credit deducted from the corporate income tax. If the tax payable was not high enough to cover the full amount of the deduction, the remaining amount can be deducted from the corporate income tax in the following years.

3. Canaries Special Zone (ZEC)

A company doing production activities and activities related to the film sector can be established as a ZEC company and pay a reduced rate of 4% on Corporate Income Tax instead of the general 30% rate currently in force in Spain, provided that they meet the following requirements. ZEC companies can carry out a wide range of activities in the film sector like:

1. Production

– Film, video, radio and television programmes

2. Production services, on set assistance and post production

– Casting, location services and dubbing
– Publishing and reproducing film copies and recordings
– Reproduction and film duplicates, compositing and photoengraving
– Brokering services to obtain contracts

3. Photography and advertising

– Photography and film developing
– Directing catalogues, publications and promotional materials
– Creating and carrying out advertising campaigns

4. Film distribution

Requirements to be a ZEC company:
a) To be a new company or branch
b) At least one of the administrators must reside in the Canary Islands.
c) Invest a minimum of 100,000 € /50,000 € (depending on whether the activity takes place in a capital island –Tenerife or Gran Canaria – or in one of the smaller islands).
d) Create at least 5 jobs / 3 jobs (depending on whether the activity takes place in a capital island –Tenerife or Gran Canaria – or in one of the smaller islands).
e) The objects of the company must be one of the ZEC authorized activities.

Benefits a ZEC company enjoys:
a) Reduced tax rate of 4% on Corporate Income Tax as opposed to the 30% currently in force.
b) Exempted from the Property Transfer and Stamp Duty Tax.
c) Exempted from IGIC on import (both of raw materials and investment materials or finished products), and exemption in operations with other ZEC companies.
d) The Double Taxation Avoidance Agreements apply as well as the exemption at origin on taxes for capital repatriation through the application of the parent subsidiary directive. Therefore, dividends sent from the ZEC company to the parent company outside Spain would be exempted from paying tax at source, applying the International Double Taxation Agreement at destination.
e) The restriction to apply the deduction on double domestic taxation on dividends has been lifted.
This ZEC tax incentive – compatible with the tax incentives for film productions described in this document – was authorized by the European Commission in 2000, to encourage the economic and social development of the archipelago. For further information

4. Other Canaries Incentives

Canaries Investment Reserve (RIC)

This tax incentive allows a reduction on the tax base of the Corporate Income Tax of up to 90% of undistributed profits. Production companies can attract RIC from other companies to invest it in their productions provided that they get the “Canaries Film Certificate” granted by the Government of the Canary Islands. RIC can be invested in feature films, short films, drama series, animation or documentaries provided that they are made in the Canaries.

Deduction for innovation: 45%

45% deduction on technological innovation activities carried out in the Canary Islands.

Deduction for advertising and publicity: 15% – 10%

10% to 15% deduction on the amount invested on advertising and publicity to launch products to open and research foreign markets and take part in trade fairs and similar events, including those held in Spain of international scope.

  1. Royal Decree-law 15/2014 of 19 December, modifying the Canaries Economic and Tax Regime.
  2. Law 19/1994, of 6 July, modifying the Canaries Economic and Tax Regime according to Law 15/2014, of 19 December.
  4. Article 36.2 of Law 27/2014, of 27 November, on Corporate Income Tax.
  5. Article 36.1 of Law 27/2014, of 27 November, on Corporate Income Tax.
  6. Royal Decree-law 18/2009, of 10 February, which regulates the procedure to obtain the Canaries Film Certificate/ order 22 may 2015 which establishes the requirement criteria to obtain the canaries film certificate.
  7. Deductions in article 36.1 and 36.2 of Law 27/2014, of 27 November on Corporate Income Tax are not applicable to short films.


To ensure the safety of our clients and crew on set and for the free flow of creativity we have come up with some production guidelines to ease the creative process.
These guidelines are advisory and informational in content, they may not be a perfect fit for every scenario, depending on the risk level of each project we will determine which control measures to implement.
These recommendations will continue to evolve with government and APCP guidelines.
Require anyone who is sick to stay home
Temperature checks upon arrival
Only allow essential personal on set, consider who may effectively be able to work from home during prep, shoot, and post.
Maintain social distancing of no less that 2 meters (6 feet) whenever possible
Observe respiratory etiquette such as covering coughs and sneezes
Encourage frequent and thorough hand washing by all personnel
If soap and water are not available, 60% alcohol based hand cleanser will always be available.
Maintain regular housekeeping practices of the set, including routine cleaning and disinfecting of surfaces, equipment, and other elements of the work environment.
Contactless payment should be utilized (instead of petty cash) whenever possible
Use of appropriate PPE, including but not limited too gloves, face shields, maskes that cover nose and mouth, goggles.
Ensure that PPE is correctly and consistently worn, maintained, regularly inspected and if necessary replaced.
Require PPE to be adequately removed, cleaned, and stored or disposed of to avoid contamination of self, others and the work environment.
To pass an item one should put it down and the other person is to pick it up
Maintain good ventilation. Keep windows and doors open when possible to cycle the air
Limit people entering the office to essential personnel
Deliveries should be transacted outside the entrance whenever possible
Pathways should be one-way when possible (clockwise) to avoid people having to pass each other going opposite directions in a narrow hallway
Plan how to serve food, coffee, etc. responsibly
Use disposable, ecologically-friendly, flatware, plates, and cups
Make disinfectant wipes ubiquitous
Everyone is responsible for moving their own cars
Consider and prioritize remote casting sessions and callbacks with live broadcast capabilities
Digitally distribute scripts and other documents
Any in-person casting will require temperature checks upon arrival
No “open calls”, actors/models must arrive to casting at an assigned time
Have an actor check in from outside using their cell phone
One dedicated Casting Assistant should sign all performers in and out
During in-person group auditions, actors can wear clear face shields and gloves
Handling of props may have to be simulated using an actor’s cell phone or other personal item
Identify wardrobe specs in the breakdowns to increase the likelihood the actor brings something that can be worn on the shoot
Use gloves and change them often
Each department is responsable for disinfected their own gear during pauses in activity.
Minimize the number of people having to touch the same items, in some cases this could require additional gear
Strive for consistency regarding which pieces of equipment are handled by whom
Pad the schedule to anticipate things taking longer than accustomed
Carefully consider number of shoot days required
Consider staggered call times, department by department
Build in time for one department to “step in, step out” at a time
Some locations may only allow limited truck parking resulting in the need to cross-load and drop off gear
‘Making the day’ will require efficiency and enough personnel. This will be challenging with limits on the number of people at a gathering
To minimize the total number of people on set strive to keep the same team throughout the entire job to avoid swapping in and out
Consider virtual scouting via a streaming app
Utilize appropriate PPE when entering a location
Give consideration to size, space and number of exits when deciding among location options
Carefully consider the number of locations that get scouted in-person
Schedule the tech scout as early as possible
Digitally distribute tech scout packets
Self-drive when possible
If in a people-mover, everyone should be in masks, gloves, etc. Consider renting more vechiles than we are used to into to allow for distance between seats
While on location, converse outside while maintaining suffiecent distance.
Try to maximize space and air flow when designating spaces for a shoot (video village, lunch, equipment staging, placement of monitors, etc.). Consider whether you will have to relocate any of these areas at some point during the day, in order to accommodate different camera positions
Schedule the pre-pro meeting as early as posible
Finalize as many creative decisions as possible no later than the prepro meeting so there will be fewer last minute changes on shoot days
Locations should be cleaned and disinfected pre and post production
Consider permitting backup locations in the event that a location pulls out or otherwise becomes unavailable
Location contracts should be executed as early as possible
Rely more on locations repped by agents (less cold scouting)
Anticipate providing alternative lodging to house occupants for the duration of the shoot (may be best for them to not enter at wrap in between the days that crew is in the home)
Anticipate possibility of having to board animals
Provide plenty of space for lunch
Bring sensor-activated soap dispensers, hand dryers, etc. to locations when available
Provide washing station when there is no access to running water
Have one individual put up and take down all location signs
Locations should in general be ‘closed sets’. No non-essential visitors.
Limit number of people in a passenger van at one time and try to commit to one driver per vehicle
Consider a higher-capacity bus for shuttling, to allow for social distance inside
Allow time for people who prefer to walk from crew parking to set rather than be shuttled
Add signage to van exterior identifying maximum capacity and reminding people to wear masks
When possible, keep windows down to promote ventilation
Additional shuttle trips may be necessary
Minimize touching items native to a location
Consider asking owner of location to reduce personal items before we take occupancy
Fewer pickups will be possible per day, per truck
Make decisions on the tech scout, get approvals from Agency / Client as early as possible
Consider potential value of prep and strike days. This may be combined with location cleaning requirements
Grip gear should only be handled by the grip department (apple boxes and stands often support other departments)
Art departments should communicate support needs in advance
More gear may be required
PPE must be worn for duration of person-to-person contact
Make-up stations spaced apart from one another, or provide a partition between workstations
Use only one brush, applicator, etc. per actor. No double-dipping
Mix foundation, powders, lipstick, etc. on a disposable palette for each individual
Clean hairbrushes and combs and reusable make-up brushes with appropriate disinfecting solutions
Kits will need to include multiples for most make-up
Actor may be able to wear a mask while having their eyes or hair done
Face shield may be worn by Make-up Artist or Hair Stylist
Only remove the actor’s mask when essential
Once made up, actor may consider face shield (as opposed to mask) in order to not disturb completed make-up
Make-up Artist or Hair Stylist may place and remove face shield for the actor (if the actor prefers)
Consider having the actor arrive camera ready
Camera pick-up from camera house may have to be scheduled
PA/AC doing pick-up must handle cases with gloves
Only camera personnel should handle camera gear including carts, cases, tape, etc.
Disinfect Comteks before and after each use
Label Comteks with the name of the user
Disinfect Lav mics and transmitters before and after each use
Replace Lav mounting components that can not be thoroughly cleaned
PPE must be worn for duration of person-to-person contact
Consider utilizing boom-only audio (as opposed to rigging Lav mics)
Some multi-talent scripts under the boom-only scenario may require a second Boom Operator
Consider staggering lunch to decrease number of people getting food and seating simultaneously
Most scenarios will benefit from individually boxed meals
Provide plenty of tables and seating to spread out safely
Hand washing station should be present
Some may prefer to bring their own food
Some may prefer to eat in their car
Only purchase individual, prepackaged portions
Everyone must clean their hands before entering the craft services area
Table should be set up so that people can take individual portions and only touch what they are taking
Craft services should have capability to refill an individual’s reusable water bottle brought to set without contact between refill source and bottle
Reduce and streamline variety of beverages
No bowls or canisters of snacks to reach into and no same plate sharing
Medic should patrol the set and proactively consult with personnel to help enforce a secure set
Medic can help identify surfaces that need to be wiped down and PPEs that may need to be cleaned or replaced.
Provide them with a separate monitor
Walkies should be individually bagged and handed to the user in its bag
Do not share walkie talkies
Replacement batteries must be disinfected in between uses, bagged, and handed to crew as needed
Only buy individual orders and portions
Clients will understand use of disposable items
Clients move their own cars
In-depth planning of wardrobe should be done ahead of shopping
Only the wardrobe department should touch clothing, etc. until it’s decided what the actor will actually try on
Fitting photos should be taken by one person, not multiple people touching the same phone, tablet, etc.
Use gloves when looking through garments in rental houses and retail stores
Anticipate delays at rental houses and retail stores as they are often understaffed
Review current retail return and exchange policies
Book talent as early as possible, and get sizes as early as possible
Costumes and outfits should be bagged up individually, by performer
Consider having actors bring their own wardrobe
Disinfect jewelry and glasses with disinfectant that will not cause harm
Consider a temporary clear barrier between actors while establishing marks and positions, and remove at the last moment
Consider alternate shot set-ups, camera angles, lenses, etc.
Carefully consider/limit number of Extras required
Be sure to have enough space and tables and chairs for Extras holding area to be spread out
Provide one pen for each Extra to execute paperwork and make sure they know to keep it and not share
Be sure to have PPE that fits the minors
No make-up unless absolutely necessary