Last week, the Estonian government decided to increase the Film Estonia cash-rebate rate from 30% to 40%, a move aimed at strengthening the country’s competitiveness in the global film-production market.

Launched in 2016 and managed by the Estonian Film Institute, the Film Estonia programme was designed to attract international productions, increase audiovisual exports and support the wider economy by encouraging foreign projects to shoot in the Baltic country.

Culture Minister Heidy Purga said the scheme had already demonstrated a strong economic impact beyond the film sector. “Film Estonia has proven itself to be a solution with a positive economic impact, creating jobs in many sectors beyond filmmaking,” she noted, adding that the rebate increase also complements the development of new film-shooting pavilions currently being built in Jõhvi and Tallinn, marking “an important step forwards in the development of the sector”.

According to government estimates, 27 projects originally planned for Estonia have moved to other countries over the past four years, representing a combined value of more than €44 million, of which around €27 million would have been spent locally. With the new 40% rebate, producers’ costs when shooting in Estonia are expected to fall by roughly 14%.

Since 2024, the programme has operated with an annual budget of €6 million. Following the rebate increase, the base budget will be adjusted to €5.2 million, ensuring that the reform does not create additional pressure on the state budget.