The panel zeroed in on success stories and case studies on building a “sustainable, happy film sector” in a small nation

A moment during the panel (© Dumitru Doru/Dumitru Goncear)

Success requires “curated and focused policies”, remarked Doina Nistor, chief of party at Chemonics International/Moldova Future Technologies Activity, while moderating the panel “Synergies Between Film Industry, Economy and Regional Development” at the second edition of the CinemaHora Forum. Organised by the Moldovan National Film Center, the event took place in Chișinău on 28-29 November, exploring synergetic ties between film, society, the economy and education – one of the edition’s central themes. Held under the “FILM 360° – Broaden Horizons” banner, this year’s forum featured seven panel discussions and brought together industry professionals from 23 countries, including 52 international attendees and approximately 90-100 local participants.

Several case studies took centre stage during the panel. Marina Bzovîi, the administrator of the Moldova Innovation Technology Park, discussed their incentive programme geared towards the IT sector, which has expanded to include activities such as game development, digital design, animation, special effects and sound recording. Detailing what she described as an “entirely different” model, Bzovîi noted that this approach recognises the convergence between IT and related creative activities, leveraging their synergies to attract businesses in these niches. Companies that generate no less than 70% of their revenue from the eligible activities qualify for a 7% flat tax on sales. When applied, this rate reduces the tax burden for companies and employees, replacing multiple tax categories, including corporate income, personal income, social security, medical insurance as well as local road usage and real-estate taxes. The process is straightforward, as Bzovîi explained, and is designed to minimise bureaucratic hurdles. The incentive regime, introduced in 2018 for an initial ten-year period and subsequently extended for another decade, will remain in effect until 2037. This extension, alongside the state guarantee in place until 2035, further underpins long-term stability and prospects for development in the sectors. Reflecting on the programme’s impact, Bzovîi observed that while Moldova may not currently aim to establish itself as a leading filming destination, the country’s attention to niche sectors that complement the filmmaking sector – such as animation, special effects and sound recording – holds notable potential.

Meanwhile, Laimonas Ubavičius, the head of the Lithuanian Film Centre, brought into focus his country’s film tax incentive, touching on the tangible benefits that a targeted and well-functioning scheme offers to the local economy and film industry. Unlike the more widely implemented cash-rebate programmes that involve state-provided funds, the Lithuanian film tax incentive does not rely on a fixed state budget allocation. Instead, it is structured as “a tax shelter”, directly tied to the tax on profit. This approach can alleviate pressure on state finances and incentivises private companies to invest in film productions. Firms willing to invest up to 30% of a film production budget can use the tax incentive “to deduct the amount granted for the filmmaking process” from their taxable income (as stated on the Lithuanian Film Centre’s website), receiving a net benefit of up to 11.25% of the invested sum. Operating through the private investment scheme ultimately benefits film productions – which may secure private investments if they meet the eligibility criteria set by the Lithuanian Film Centre – and investors, who gain tax relief. As Ubavičius pointed out at the panel, the figures illustrate its economic impact. Since its implementation in 2014, the country’s scheme has benefitted some 472 productions (277 national, 99 foreign/service-based and 96 co-productions), which received a total of €89.72 million in investment. This led to a staggering expenditure of €331.71 million in the country. In 2023 alone, 101 productions made use of the scheme, receiving €21 million (€6.47 million for national productions, €12.8 million for foreign/service-based productions and €1.8 million for co-productions). As a result, spending in 2023 amounted to €70.82 million.

The measurable economic impact and data-driven approach of the Lithuanian model not only ensure its economic viability, but also help secure continued government and legislative support. This, in turn, bolsters credibility with stakeholders and creates a predictable climate for film producers and private investors. The programme’s flexibility is another advantage: with no application deadlines, projects may apply to the scheme according to their individual timelines and needs. A wide range of productions are eligible, including fiction feature films, documentaries, animations and TV dramas – whether they are national, service-based or co-productions. In a bid to boost economic impact and advance local talent, the Lithuanian Film Centre established a set of production criteria: at least 80% of eligible film production costs must be incurred in Lithuania, with a minimum total spend of €43,000, at least three shooting days in the country, and 51% of the crew comprising nationals from Lithuania or other European Economic Area countries (with separate production criteria for animation). Cultural criteria are also in place to ensure the cultural relevance of film productions, although only two out of eight criteria must be met for a production to be eligible. According to Ubavičius, the programme has experienced considerable growth over the years, with film productions receiving over €20 million in investment in 2023, up from just over €10 million in 2020. Such figures, he argued, not only attest to the effectiveness of the streamlined, “investor-friendly” scheme, but also demonstrate how such policies can position a small nation like Lithuania as a dependable filming destination. This growing appeal is further evidenced by Lithuania’s recent selection as a shooting location by major players such as Netflix and HBO. Such targeted mechanisms have not only drawn international productions, but also helped strengthen the local film industry, which sees improvements in production infrastructure, capacity-building for professional crews, and the nurturing of homegrown talent. Ubavičius elaborated on this positive momentum, noting the emergence of a new generation of Lithuanian filmmakers whose works are gaining international recognition. Most recently, for instance, Saulė Bliuvaitė debuted her feature Toxic [+see also:
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