Spain’s Film and TV incentive generated EUR1.8bn gross value added between 2019-2022

Asteroid City

, Netflix’s The Crown

and Kaos, and HBO’s House of the Dragonseries. The report, entitled ‘Economic impact of international productions in Spain,’ was commissioned by Spain Film Commission and service provider association PROFILM as part of the Spain Audiovisual Hub Initiative. This EUR 1,600 million investment, launched by the Spanish government in 2021, is funded by the government and NextGenerationEU program of the European Union to boost audiovisual production by 30% by 2025. Spain offers 30% rebates on eligible costs up to EUR1m and 25% thereafter, with a EUR20m limit per feature film. The incentive rises in the Canary Islands to a 50% rebate on eligible costs for the first EUR1m of eligible expenditure and 45% thereafter.The commitment of the Spanish government to the film and TV sector was highlighted by the presence of Maria Gonzalez Veracruz, secretary of state of telecommunications and digital infrastructure, in San Sebastian. Veracruz praised the audiovisual industry as “a true engine of economic growth”.Also present was Ignasi Camos, general director of Spain’s film body ICAA, who believes the study will show “the potential, strength and impact” of the international shoots industry.According to the study, the regions with the highest spend by international shoots between 2019 and 2022 were Madrid (EUR194.8m), Catalonia (EUR119.8m), the Canary Islands (EUR106.3m) and Andalusia (EUR95.3m). Data of the impact of the recent rise of incentives in the Basque Country could not yet be assessed.

Regarding employment, the report estimated international film and television productions attracted by the incentives scheme supported an average of 7,080 jobs each year between 2019 and 2022.

The production data, according to the study, showed a decline in 2020, attributable to the impact of the Covid-19 pandemic, from EUR343.3 million in 2019 to EUR145.9 million in 2020. Production expenditures increased annually from 2020 onwards, surpassing pre-Covid-19 levels in 2022.

Total expenditures in 2022 were more than 50% higher than they were in 2019. Production volumes also increased by 33%.