Spanish Corporate income tax rules maintain certain tax reliefs whose purpose is fomenting qualifying activities. Besides the well – known R&D or job creation tax credits, Spanish rules include, from January 01, 2015, a renewed tax credit for investments in film productions and audio visual series as well as introduce a new tax credit related to the production and exhibition of live musical and arts performances.
The establishment of associative forms can, with due caution, permit attract private investors to this type of activities, increasing the appealing of these tax incentives that can be of your interest.
✔ 1st Category: Investments in Spanish film productions and audio visual series
This tax credit is subject to obtaining the nationality and cultural contents certificates that are granted by the INAEM (National Institute of Music and Arts performance) and the deposit of a new copy in the Spanish or Regional Film Library.
The film producer can benefit from a tax credit of 20% on the first million euro and 18% on the excess, subject to the limit of 3 million euro. 50% of the expenses must be incurred in the Spanish territory.
✔ 2nd Category: Execution expenses of foreign productions
With the aim of attracting foreign super productions to Spain with high economic and touristic impact, producers executing a foreign production and registered in the Spanish Registry of motion picture companies depending from the Spanish Education, Culture and Sports Ministry can apply a tax credit of 15% of the expenses incurred in Spanish territory. It is required that such expenses are of, at least, 1 million euro. This tax credit cannot exceed 2.5 million euro per production.
✔ 3rd Category: Expenses for the production and exhibition of live musical and arts performances
Taxpayers having a certificate granted by the INAEM can deduct 20% of the direct artistic, technical and promotional costs incurred in such activities. The tax credit cannot exceed 500,000.00 euro per fiscal year.
In summary, the introduction of these measures is very good news not only for the economic sector but also for potential investors looking for the best financial and fiscal returns that, as always, have to be analysed with due care.