Screen Ireland has hailed the Irish Government’s strong commitment to the country’s screen industries, following the announcement of new fiscal measures for its 2026 budget. The update includes the introduction of a 40% rate of relief for productions with at least €1 million of eligible expenditure on visual effects (VFX) work, alongside an extension and enhancement of the existing digital games tax credit.

The measures were announced by Minister for Finance Paschal Donohoe TD as part of a wider effort to strengthen Ireland’s competitiveness in the creative industries. The move is designed to position the country as a leading hub for high-end VFX and digital production, on par with international competitors such as the UK, France, New Zealand and Canada.

Ray Harman, chair of the Screen Ireland board, welcomed the development, stating: “The Irish VFX sector has demonstrated huge potential for growth – and thanks to this support from the Irish Government, Screen Ireland will continue to work closely with the sector’s leading studios as they look to expand and develop the sector.

“In recent years, Screen Ireland has expanded its remit to support the digital games sector, with new pilot concept development schemes and support for all-island initiatives. We believe there is a unique opportunity to highlight Ireland’s globally recognised standard of creative and technical skills and use them to transform digital games in Ireland.”

Echoing Harman’s words, Screen Ireland chief executive Désirée Finnegan added: “Irish VFX and post-production work showcases the very best of visual artistry and technical expertise, generating commercial success and internationally award-winning work. Screen Ireland has worked closely with Ireland’s VFX and post-production studios to strengthen relationships with the world’s leading film studios to drive growth, employment and skills development opportunities through the National Talent Academy for VFX. The extension and improvements to the digital games tax credit are strongly welcomed and will support the potential for significant growth across the games sector in Ireland.”

The new 40% rate is expected to bolster Ireland’s position in the fast-growing global VFX market. Indeed, Irish studios have recently contributed to major international productions such as WandaVision and Spider-Man: No Way Home from Marvel Studios, and FX’s Shōgun for Disney+.

The revised incentive will now include claims for post-release content work, where the original game availed itself of the digital games tax credit. Details of the measure will be finalised in the forthcoming Finance Bill.

Recent studies estimate that the Irish screen industry contributes over €1 billion in gross value added (GVA) to the national economy and supports nearly 16,000 full-time equivalent jobs. Following record-breaking production levels in 2021 and the global recognition of Irish talent, both on and off screen, the new measures aim to sustain the sector’s momentum and reinforce Ireland’s position as a world-class centre for creative and technical excellence.