- Novara Capital Group
Audiovisuals in the Canary Islands
A total of 30 film productions were shot in the Canary Islands bringing 30 million Euros and creating more than 1,085 jobs in 2017. The councillor for Tourism, Culture and Sport of the Government of the Canary Islands, Isaac Castellano, stated at a press conference that the good results are the product of institutional collaboration. The coordinator of Canary Islands Film, Natacha Mora, highlighted the work carried out by the Government of the Canary Islands since 2015 to encourage the collaboration between different administrations in order to attract more film shoots.(1)
The Film Industry in Canary Islands has been recognized with prestigious film awards and is ready to produce and co-produce all kind of projects. The Canary Islands’ vast experience in tourism, together with the economic and social development of the population, who are completely integrated in the European Union,make this Spanish region a safe choice for film projects of any size. European standards of comfort and safety in terms of law, work, health or even of a personal nature, contribute to the success of the projects.
The Canary Islands Key Industry Players are:
266 Registered audiovisual companies
214 Production companies
3 professional associations
30 festival and film shows
3 professional markets
The island of Gran Canaria is known due to its varied landscapes, 236 kilometers of coastline, 21 municipalities and highly valued natural heritage.The forces of nature and the volcanic origin of the Canary Islands built an unusual geography that features a variety of extraordinary natural landscapes. From white sand beaches to age-old leafy forests, breathtaking cliffs, undulating dunes by the sea, volcanic landscapes that belong to other worlds and sea beds with amazing visibility. Humans have also contributed to creating the largest number of locations imaginable: colonial-style farms, picturesque towns, lonely roads, modern European cities, industrial areas, etc. The Gran Canaria Film Commission provide information and advice needed to obtain the relevant filming permits to shoot there. (2)
The Canary Islands offer a range of tax advantages which are successfully applied thanks to the Canaries Economic and Tax Regime (REF) within the legal framework of the EU and Spain. This makes the Canary Islands one of the best places to film in Europe.
The Audiovisual industry benefits of the following Tax Incentives:
40% Tax Rebate for foreign productions:
➔ A million euros spent in the Canary Islands
➔ Minimum production budget 2 million euros
➔ Contracting a film producer registered with the Institute of Cinematography and Audiovisual Arts who has his/her tax residence in the Canary Islands
45% Tax Credit per Investment in Spanish Productions
➔ A Canaries Audiovisual Work Certificate
➔ At least 50% of the deduction base must correspond to expenditure incurred in Spain
4% Corporate Income Tax Rate (ZEC Canary Islands Special Zone)
The audiovisual companies based on the islands can benefit from the Corporate Income Tax rate of 4% as ZEC entities (Canary Islands Special Zone), under the framework of the Canary Islands Economic and Tax regime. The Islands, being a Spanish Autonomous Community, are regulated by the European Union framework, which allow the free movement of its citizens. As European residents they can enjoy all the rights and privileges granted by the agreements concerning European citizens under the 1992 Treaty of Maastricht.
A zero rate is applied to the production of feature films, drama, animation or documentary series.
In addition, excellent professionals, film production service and equipment rental companies have successful and wide experience in major international and national productions and provide top professional service. If a production company requires the entrance of audiovisuals in order to carry out cinematographic shootings, video recordings, etc, must be accompanied by an ATA carnet issued by the Chamber of Commerce.
Famous film movies and TV shows produced on the Island:
● Wild Oats
● Broken Embraces
● Wrath of Titans
● Fast & The Furious 6
● Cold Skins
● Clash of The Titans
● Nobody wants the night
● Jason Bourne
● The Kid
● Mist and the Maiden
● Han Solo (The Starwars)
● Black Mirror
If you are a film producer looking to film on the Island or if you want to set-up there and enjoy the Tax Incentives, we can give you the advice needed to reach your goals. Our experienced consultants will be glad to guide through the process. Also, if you require further information, don´t hesitate in contacting us.
Novara Capital Group is an international tax & capital investment consulting firm. We specialise in Corporate Structuring, European Union Tax Incentives, IP Positioning, and Transactions / M&A. We provide intelligent corporate structures, advice, and an integrated service which cross delivers in businesses. We advise companies globally to accelerate international growth, optimise net profits, and enhance equity value leveraging Intellectual Property and Licences. Our in-house experts specialise in International Tax Law, Company Law & Cross Border Jurisdiction, Investment & Asset Management, Mergers & Acquisitions, and Operational Management.
Get in touch today to arrange an introductory conversation for more information.
London Tel: +44 207 129 7086
Spain Tel: +34 910 085 807
#CorporateStructures #ZECZone #Tax #TaxBreaks #EUTaxIncentives #EuropeanCommission #EuropeanUnion #CanaryIslandsZEC