INTERES Invest in Spain

Cinema Law 55/2007 is aimed at bolstering the promotion and development of the production, distribution and showing of films and audiovisual works, and the establishment not only of terms favoring their creation and dissemination but also of measures for the preservation of film-making and audiovisual heritage.

Apart from the tax incentives applicable to the film-making industry, some of the main incentives included in the Cinema Law, which are to be granted by the Spanish Institute for Film-making and Audiovisual Arts (Instituto de la Cinematografía y de las Artes Audiovisuales or ICAA), consist of subsidies which vary in amount depending on the beneficiaries, for, inter alia (i) script-writing and project development; (ii) cultural and non-regulated training projects; (iii) aid for the amortization of full-length motion pictures and short films; (iv) aid for the distribution of films; and (v) aid for movie theaters.

Notwithstanding the foregoing, some calls for grant applications published under the former legislation before the new Cinema Law came into force are still open (more information at www.mcu,es/cine/sc/becasayudassubvenciones/index.html).

Without prejudice to the incentives granted directly by the ICAA, referred to above, please note that there is a Film Production Financing Line promoted by the ICO and the ICA, which finances full-length motion picture production projects which have not previously been granted ICAA project aid.

The ICO also has a Financing Line for Film Projection with which to finance projects for (i) the creation, reconversion, remodeling and adaptation of movie theaters for disabled access; (ii) the acquisition of computer equipment and media for film projection, sound systems and ticket sales; and (iii) the acquisition and improvement of production equipment.

The ICO also has a Financing Agreement for audiovisual works with RTVE and FAPAE (Federation of Spanish Audiovisual Producers), executed on January 23, 2006 to manage aid to FAPAE member producers, the term of which expires on December 31, 2008.

For more information on Investment aid & incentives, you can download the following document: