SAVE MORE THAN A QUARTER OF PRODUCTION COSTS
Iceland offers reimbursement of up to 35% of the costs incurred during the production of films and television programs in Iceland. Based on a special legislation, the reimbursement scheme is simple, transparent and effective. Production costs refer to all costs incurred in Iceland deductible from the revenues of enterprises pursuant to the provisions of the Act on Income Tax.
All productions for feature films, TV shows and documentaries in Iceland are eligible for a 25% refund, no matter the total cost of the project but to receive 35% a production must fulfill three requirements:
1. Production costs incurred in the production of the motion picture or television material concerned in this country must be a minimum of ISK 350 million.
2. The project in question must have a minimum of 30 working days in Iceland, either consisting of actual film production (shooting) days or defined post-production working days. Of the 30 working days, a minimum of 10 shooting days in Iceland is however always required.
3. The number of staff working directly on the project shall be 50 at a minimum and this work shall amount to 50 working days. It is a requirement that both salary and payments to employees and contractors, shall be taxed in Iceland.
Payments pertaining to employees and contractors are only to be included in production costs if they are verifiably taxable in Iceland. When more than 80% of the total production costs of a motion picture or television program are incurred in Iceland, the reimbursement is calculated based on the total production cost incurred within the European Economic Area (EEA). The reimbursement scheme does not include the production of commercials or music videos.