Enróllate Films
ES

Tax incentives

Up to 54% tax rebate for shooting in the Canary Islands

The Canary Islands offer one of Europe's most competitive audiovisual tax frameworks: 54% on the first €1M of eligible spend, 40% on the rest, plus a 4% corporate tax rate through the ZEC regime. Enróllate Films coordinates with specialist tax advisors so your production captures every euro available.

54%

Rebate on first €1M

40%

Rebate on remaining spend

€36M

Max rebate per production

€18M per episode in series

4%

Corporate tax rate in ZEC

vs 25% elsewhere in Spain

Overview

A framework designed to attract international production

The audiovisual rebates from Law 19/1994, the Canary Islands Special Zone (ZEC) regime, the Canary Islands Investment Reserve (RIC) and the reduced indirect tax (IGIC at 7% versus mainland VAT at 21%) combine to make the islands the most attractive fiscal jurisdiction in Europe for audiovisual production. Studios such as Amazon, Apple TV+ and Warner Bros have already filmed here taking advantage of this framework.

The incentives

The four main incentives

Not every incentive applies to every production. Our tax team reviews your project and combines the ones your production qualifies for to maximise savings.

01

Canary Islands audiovisual rebate (Art. 36 LIS + Law 19/1994)

The headline incentive. A direct tax credit on spend incurred in the Canary Islands, available both for domestic productions (art. 36.1 LIS) and for foreign producers hiring execution services here (art. 36.2 LIS). The Canary Islands uplift the mainland rates (30% / 25%) to reach 54% / 40%.

  • 54% on the first €1M of eligible spend
  • 40% on eligible spend above the first €1M
  • Cap: €36M rebate per production
  • Series: €18M rebate per episode
  • Minimum €1M eligible spend in the Canary Islands (foreign productions)
  • Cultural certificate from ICAA or the competent island council

02

Canary Islands Special Zone (ZEC) — 4% corporate tax

ZEC is a low-tax zone authorised by the European Union. An audiovisual company incorporated as a ZEC entity pays 4% corporate tax, compared with Spain's 25% general rate. Compatible with the audiovisual rebate.

  • 4% corporate tax rate
  • Minimum investment: €50,000 (capital islands) or €25,000 (non-capital islands)
  • Create 5 jobs (capital islands) or 3 jobs (rest)
  • Audiovisual activity is on the list of authorised sectors
  • Exemption from Capital Transfer Tax

03

Canary Islands Investment Reserve (RIC)

Allows up to 90% of retained profits to be exempt from corporate tax, provided the amount is reinvested in qualifying Canary Islands assets within the next four years. Useful for production companies planning ongoing operations in the islands.

  • Up to 90% of retained profits exempt
  • Reinvestment in productive assets in the Canary Islands
  • Four-year window to materialise the investment
  • Combinable with audiovisual rebate and ZEC

04

IGIC — 7% indirect tax (vs 21% VAT on mainland)

VAT doesn't apply in the Canary Islands — the equivalent indirect tax is IGIC, with a 7% general rate. It's reflected in every local supplier invoice: equipment rental, crew accommodation, catering, transport, fixer services.

  • 7% standard IGIC (vs 21% mainland VAT)
  • Reduced rates of 3% and 0% for specific services
  • Recoverable for productions registered in the Canary Islands
  • Immediate saving on every invoice

Example

Numerical example

Simplified example showing how the audiovisual rebate applies. Final figures depend on the exact spend profile and must be validated with the tax advisor before budgeting.

Scenario

International production with a total budget of €3M and €2M of eligible spend in the Canary Islands.

First €1M eligible × 54%
€540.000
Second €1M eligible × 40%
€400.000
Total rebate
€940.000
Saving on total spend in the Canary Islands
~47%

Indicative figures. The rebate is applied to spend that's actually incurred and properly evidenced. The overall cap per production is €36M. In series, the cap is €18M per episode.

Requirements

Key requirements

Requirements vary by incentive. These are the most common ones to account for from the budgeting stage:

  • 01Minimum €1M spend in the Canary Islands for foreign producers (art. 36.2).
  • 02A Canarian executive producer registered with ICAA must be engaged.
  • 03Cultural certificate (ICAA or island Cabildo) evidencing European cultural status.
  • 04Eligible spend: crew, services, equipment, accommodation and post-production contracted in the Canary Islands.
  • 05At least 50% of the spend must be in Spain (for art. 36.2).
  • 06The Canarian production company must file its corporate tax return on time.
  • 07Minimum duration: 45 minutes (feature films and works of fiction, animation and documentary).

Our process

How we handle it

You don't need to understand every article of the law. We coordinate the people who do.

01

Initial analysis

We review your brief and estimate which rebates apply and what savings are realistic. No cost, no commitment.

02

Tax team

We connect you with tax advisors specialised in audiovisual. We work with several firms with a track record in international productions.

03

Execution

During the shoot we make sure expenses are invoiced correctly in the Canary Islands and that paperwork is valid for the rebate.

04

Certification

We process the cultural certificate and accompany the Canarian producer through the corporate tax filing.

FAQ

Frequently asked questions

What's the minimum spend required in the Canary Islands?+

For foreign producers using the art. 36.2 LIS rebate, the minimum is €1M of eligible spend in the Canary Islands. Spanish productions don't face that floor for art. 36.1 but must still meet requirements on Spanish-territory spend.

Which costs are eligible?+

All costs directly tied to the shoot when contracted in the Canary Islands: crew, technicians, resident cast, equipment rental, transport, accommodation, catering, location fees, permits, insurance and post-production carried out in the islands. Director and screenplay fees have specific caps.

Can I combine the audiovisual rebate with ZEC and RIC?+

Yes. They're complementary. The typical structure is a Canarian production company incorporated as a ZEC entity that executes the shoot, claims the audiovisual rebate and applies RIC on its profits. The tax advisor designs the optimal structure for each case.

How long until the rebate turns into cash?+

The rebate is applied on the corporate tax return for the fiscal year in which it arises. When the rebate exceeds the tax due, the Spanish Tax Agency refunds the balance — typically 18 to 24 months after the end of the shoot. Some advisors offer bridge financing to advance the cash.

Does it apply to commercials, animation and documentary?+

Animation and documentary: yes, same rates. Advertising has a separate regime — Law 19/1994 provides incentives for international advertising shot in the Canary Islands with distinct rates and requirements. International co-productions also qualify.

What paperwork do I need from day one?+

A production brief with a preliminary budget, tentative shoot schedule, synopsis and basic tech sheet. From there the advisor prepares an incentive analysis and savings estimate. Formal paperwork (cultural certificate, contracts, invoices) is structured during pre-production.

What if my production doesn't reach €1M?+

If you're a foreign producer, you don't meet the art. 36.2 threshold. You can still benefit from ZEC, reduced IGIC and RIC if you structure production through a Canarian entity. Options include co-production with a Spanish producer (art. 36.1) or the advertising regime if your format fits.

Is there any risk that the rates will change?+

The current rates (54%/40%) are enshrined in Law 19/1994. Any change would require legislation and European Commission approval. Over the past decade the trend has been upward, not downward. Even so, we recommend locking the tax structure before the shoot so the framework is fixed.

Informational content. Every production must be validated with a tax advisor.

How much could your production save?

Send us your brief (budget, schedule, production type) and within 48h we'll come back with an estimate of applicable incentives and real savings for your project.

Request analysis →