04/07/2011

On Friday, July 1, the Council of Ministers approved the extension to the 18% tax deductions for film production, which were due to expire on December 31 of this year. This show of confidence towards the presence of the private sector in cinema, despite the difficult economic climate that Spain is experiencing (see news), has been welcomed with open arms by the industry. In a statement, FAPAE (Federation of Audiovisual Producers Associations) said that this measure “brings necessary stability to the audiovisual sector”.

Since their introduction at the end of 2007 as part of the Film Law, the tax deductions have “helped improve the industrial fabric of this sector thanks to the incorporation of Economic Interest Groups (EIG)”, according to the press release issued by the Culture Ministry, which describes the effects on Spanish filmmaking as “wonderful”.

There are currently 30 production companies registered as EIGs. Since 2008, the number of films produced through this system has increased significantly, from four in its first year to 13 in 2010. It has given rise to films including The Oxford Murders [+see also:
film review
trailer
interview: Álex de la Iglesia
interview: Gerardo Herrero and Mariela…
film profile], Cell 211 [+see also:
film review
trailer
interview: Daniel Monzón
film profile], Oscar-winner The Secret In Their Eyes [+see also:
trailer
making of
Interview Juan José Campanella [IT]
Interview Ricardo Darín [IT]
Interview Soledad Villemin [IT]
film profile] and Even the Rain [+see also:
film review
trailer
interview: Icíar Bollaín
film profile]. In 2009, films produced by EIGs accounted for 26% of box office takings for Spanish films.

The entry of the private sector into Spanish film financing has for some time been one of the major aims of the industry, which has seen its traditional financing sources gradually diminish both in number and percentage of investment (see news).

(Translated from Spanish)