Hungarian Tax Rebate for Film Productions

Films (for cinema and television) produced in Hungary are eligible for a 25% rebate based on their expenditure (all the direct film production costs) emerged in the country.

The scheme is part of the film support programme approved by the European Commission until 31st of December 2019 with a budget of EUR 402 million. The incentive is available through local business companies who receive tax relief after their support of films or through the Collection Account operated by the Hungarian National Film Fund. The incentive is guaranteed by the Hungarian state through the Collection Account.The financial support is provided in the form of a cash refund (post-financing).The incentive is up to 25% of the eligible production expense (Hungarian or not-Hungarian). The non-Hungarian eligible spend is capped at 25% of the Hungarian eligible spend. See the detailed presentation below!

Source and further details: nfi.hu

Hungary’s Rebate Scheme Raised from 25% to 30%

Initiated by the Hungarian National Film Fund, the European Commission has approved the raise of Hungary’s tax incentive to 30%. The tax incentive is available for film productions shooting in Hungary. The film support scheme is extended until the end of 2024.

The main purpose of the increase is to preserve Hungary’s leading position and competitiveness in the European film industry. The Hungarian film support scheme provides significant contribution to the development of the Hungarian film industry and to the country’s GDP.

According to the European Audiovisual Observatory’s 2015 report, film production in Hungary accounted for 0.15 percent of gross domestic product — one of the highest proportions in Europe. The volume of film production spending reached $400m in Hungary 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.” – said Andy Vajna, film commissioner.

Source and further details: nfi.hu