The European Commission has approved, under EU state aid rules, an amendment to a Spanish scheme, including a €340 million annual budget increase, to support the production of Spanish and international films and other audiovisual works.
The scheme was originally approved by the Commission in May 2014 (SA.37516), and amended in December 2015 (SA.40170) and in December 2020 (SA.57608). Under the scheme, Spanish and international film and audiovisual work producers receive support in the form of tax deductions in their corporate tax due in Spain.
Spain notified the Commission of the following amendments to the existing scheme: (i) an annual budget increase by €340 million, bringing the annual budget to €400m; (ii) an increase of the maximum amount of tax deduction that the beneficiaries can apply to €20m per film (from €10m); (iii) the setting of a maximum of €10m of tax deduction per series episode; and (iv) the extension of the duration of the scheme until 31 December 2026.
The Commission assessed the amended scheme under EU state aid rules, in particular the 2013 Communication on state aid for films and other audiovisual works. The Commission found that the Spanish scheme, as amended, remains necessary, appropriate and proportionate to promote culture in Spain and the EU, and continues to have a limited impact on competition and trade between member states. On this basis, the Commission approved the amendment under EU state aid rules.
The non-confidential version of the decision will be made available under the case number SA.105988 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.
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