Hungary's tax rebate scheme raised from 25% to 30%
- The European Commission has approved the increase in the level of Hungary’s tax incentive, available to both national and international film productions
The European Commission has given the green light to an increase from 25% to 30% in the level of the tax incentive linked to film production spending in Hungary. In addition, the film support scheme has been extended until the end of 2024.
According to the Hungarian National Film Fund, the main purpose of this increase is to preserve Hungary’s leading position and competitiveness in the European film industry, and to bolster a system that provides a significant contribution to the development of the local film industry and to the country’s GDP. Indeed, a 2015 study by the European Audiovisual Observatory estimated that film production in Hungary accounted for 0.15% of the gross domestic product – one of the highest proportions in Europe – and the volume of film production spending reached €344 million in 2017.
"In addition to the tax incentive, Hungary’s film industry has highly educated and experienced film crews, a variety of exciting and new film locations, and state-of-the-art sound stages. Budapest is the most popular location to shoot films in Continental Europe. With the increased tax incentive, we aim to strengthen the Hungarian film industry and to preserve our leading position in the international market," stressed Andrew G Vajna, Government Commissioner in charge of Hungarian film since 2011.
Currently, a raft of international productions are being filmed in Hungary, including the sixth instalment in the Terminator franchise and the thriller Gemini Man by Ang Lee, which is being toplined by Will Smith.
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