A new tax-incentive scheme enters into force in Portugal
by Vitor Pinto
- The scheme is applicable to productions whose expenditures in Portugal are equal to or higher than €1 million
Portugal’s new tax-incentive scheme has entered into force. Announced at the latest Berlinale but partially eclipsed by the controversy that saw the local industry come into conflict with the Ministry of Culture (read more), the scheme is applicable to feature-length fiction projects, documentaries and animation works whose production expenditures in Portugal are equal to or higher than €1 million.
Potential beneficiaries include national productions, official co-productions and foreign films (executive productions/services), with the scheme offering a refundable tax credit of 20%-25%, depending on the particular characteristics of the production.
Until now, Portugal has been one of the few countries in Europe not to offer an incentive to attract productions; it had been “the missing pillar in ICA’s development policy for film and audiovisual”, as ICA president Filomena Serras Pereira pointed out to Cineuropa.
Now, the new scheme, which may help to boost international shoots in the country, “will reinforce our competitive potential, aiming to attract productions to our territory. It will allow us to emphasise the many positive aspects that characterise Portugal as a shooting location: its great variety of natural sets, short distances, excellent roads, qualified workers – a lot of them internationally trained, renowned for their know-how and versatility – competitive costs, security and pleasant work environments,” concluded Serras Pereira.
The scheme was approved by the government in December 2016, thus bringing into force a legislative authorisation that was provided for in the 2016 general budget.