12/05/2011

The Croatian Audiovisual Centre (HAVC) has announced the introduction of a 20% tax rebate for international film and TV productions shooting in the country. The incentive is a part of the four-year National Strategic Programme for the Audiovisual Industry, which was launched in January.

The new incentive is a cash rebate of up to 20% of a project’s qualifying expenditure. The benefit is based on the cost of a Croatian cast and crew working in Croatia, as well as goods and services purchased in Croatia, up to a maximum value of 80% of the overall budget spent in Croatia. There is a ceiling of €3m on qualifying local expenditure per project and the minimum local spend per project is €300,000. The rebate applies to feature films, documentaries, short films, television drama and animation.

Technically, a foreign producer needs a Croatian co-producer who then applies to the HAVC for a provisional certificate before the start of production, and for a final certificate upon completion of the production in the country. The Croatian co-producer is responsible for compliance with prescribed formal requirements and provides the full range of production services including locations scouting, scheduling, budgeting, casting, crewing and takes full responsibility for all production services carried out in the country throughout the production.

The net benefit will be made available upon completion of production, audit of the final cost statement and evidence that all the requirements have been met.

Qualifying projects have to pass a cultural test that comprises three categories: cultural content, creative talent and production.

HAVC will present the incentive in Cannes, and it is expected that the new law will be voted on in the Croatian Parliament in December.