The legal framework for audiovisual coproductions in Spain is a fundamental pillar for the growth of the industry. This article details the essential laws, treaties, and requirements, highlighting how Spain positions itself as an attractive and strategic destination for international film projects.
Spain’s coproduction regime in brief
The coproduction legal framework in Spain can be summarized by the following laws:
• Film Law (Law 55/2007): This law establishes the legal framework for film production in Spain, including international coproductions.
• Regulation of the Film Law: This regulation develops the Film Law and sets out specific rules for coproductions.
• Order CUD/582/2020: This order regulates state aid for the production of feature films and short films, including coproductions.
Eligibility criteria and treaty options
Spain has bilateral and multilateral agreements for film and audiovisual coproductions. These treaties facilitate collaboration between Spanish and foreign companies, allowing joint projects and access to benefits and aid. Among the most relevant agreements are those with Ibero-American and European countries. Let’s see what they are.
Bilateral treaties and European Convention
The European Convention on Cinematographic Co-Production is of special relevance, in force since April 1, 1994, and adopted by the Council of Europe on October 2, 1992, in Strasbourg. This treaty establishes guidelines and regulations for film coproductions among the signatory countries. Its main objective is to promote cultural diversity and cooperation in the European film industry.
On the other hand, Spain has coproduction agreements for the creation of films with Latin American countries such as Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Uruguay, Peru, and the Dominican Republic. Additionally, there are international treaties focused on collaborations between Spain and countries with a different idiosyncrasy, such as Canada.
Official and non-official coproductions
Both the European Convention on Cinematographic Co-Production and the other agreements define the criteria for a coproduction to be considered as such. Additionally, these treaties establish the mechanisms to ensure the participation of coproducers from various countries. This includes aspects such as technical and artistic participation, financing, and the distribution of the film.
Contracting requirements for co-production agreements
Film and audiovisual coproduction projects must be approved by the Spanish Ministry of Culture in order to access the benefits of the agreements. The Ministry verifies that the project complies with the requirements established in Spanish legislation and in the applicable international agreements.
Key clauses in the coproduction agreement
The coproduction agreements we have mentioned include key clauses to ensure proper project management and distribution of benefits. These rules define very important aspects:
• Participation of each producer.
• Distribution of benefits.
• Budget management.
• VAT treatment.
• Responsibility for possible cost overruns.
Creative contribution and financial split clauses
Among the main clauses, those related to each country’s participation and the distribution of benefits are especially relevant. Who contributes the highest percentage of resources?
In Spain’s film coproduction agreements, each producer’s participation is variable but generally ranges between 20% and 80% of the total film budget. In multipartite coproductions, the smallest participation cannot be less than 10% and the largest cannot exceed 70%. These participations determine each producer’s investment, usually proportional to their percentage of exploitation rights and profit.
Financing structure and tax incentives
Spain offers tax benefits for the creation of international coproductions. These are the most relevant incentives in the country.
Accessing the Spanish tax rebate
Spain offers attractive tax incentives in the film sector, essential for both national and international productions. The tax deductions, regulated by the Corporate Income Tax Law, allow production companies to recover part of their investment. Economic Interest Groupings (AIEs) are crucial, facilitating financing and the transfer of tax benefits to their partners, making Spain a privileged destination for shooting audiovisual works.
Combining regional funds and Eurimages support
Film coproductions can access different financing channels. It is important to seek financial support in each country. It is easy to find aid at the regional level, such as tax deductions in Spain. In addition, this financial boost can be combined with support from Eurimages, a fund from the Council of Europe that supports the coproduction, distribution, and exhibition of European films, especially feature films.
Application process and timelines
The process for applying for a coproduction in Spain involves submitting an application to the Institute of Cinematography and Audiovisual Arts (ICAA) or the competent body of the Autonomous Community, along with the required documentation. This application must be submitted by the Spanish production company involved in the coproduction and can be submitted either online or in person.
Provisional certification
Within an estimated period of 4 months from the submission of the corresponding application, a provisional certificate of international coproduction is issued. This document temporarily certifies the coproduction status of an audiovisual project between different countries, prior to final approval. The approval must be requested before the start of filming, in accordance with Royal Decree 1084/2015, and once obtained, it facilitates administrative procedures and opens the door to benefits such as access to financing and participation in the market.
Final approval and payment Schedule
The process for obtaining final approval of an international coproduction certificate is as follows:
- Application: A formal application must be submitted, which usually includes project documentation such as the script, budget, shooting plan, coproduction contracts, and details about each coproducer’s participation.
- Evaluation: The competent authorities evaluate the application, verifying that the project complies with the established legal and cultural requirements, as well as the terms of the coproduction agreement.
- Resolution: An official resolution is issued approving or rejecting the coproduction, which must be notified within a set period, depending on the corresponding body.
The timeframe for obtaining the final coproduction certificate is variable, depending on the complexity of the project, the workload of the processing body, and the required documentation.
Compliance and reporting obligations
In the application for a film coproduction in Spain, there are various obligations and requirements, both documentary and economic/contractual. It is crucial to comply with all of them to ensure the approval of the coproduction by the Ministry of Culture. Essentially, the following documentation is required:
- Application form: The official application form for the approval of a coproduction project must be submitted along with the rest of the required documentation.
- Proof of rights assignment: A document proving the assignment of the script rights by the author(s), or where applicable, the option or assignment of the pre-existing work, must be provided, as well as proof of registration of the script in the Intellectual Property Registry.
- Script and shooting plan: The film script and a detailed shooting plan must be attached.
- Budget: A detailed project budget must be submitted, indicating the items and cost breakdown for each participating country, following the official model.
- List of personnel: A nominal list of creative and technical personnel, including their nationality, is required.
- Coproduction agreement: The coproduction contract must be submitted, specifying the agreements between the parties, including each coproducer’s participation, contributions, transfers, and distribution of profits.
- Contract translation: If the contract is not written in Spanish, a translation into Spanish must be provided.
Frequently asked legal questions
- What happens if a project does not meet the minimum percentage of Spanish participation? If a coproduction does not reach the minimum percentage of Spanish participation (generally 20% for bilateral coproductions and 10% for multipartite ones), it may not qualify for tax benefits and official coproduction status. This does not prevent the project from being made, but it would operate as a foreign production in Spain, without the associated incentives.
- Are there limits on the size of the foreign team that can participate in a coproduction? Although coproduction agreements encourage balance, there is no strict limit on the size of the foreign team. However, to qualify as an official coproduction and access the benefits, the technical and artistic contribution of each country is evaluated, seeking substantial participation of Spanish talents in key roles, which influences eligibility.
- Must coproductions have a commercial release in Spain? To fully benefit from the incentives and official coproduction status, it is a requirement that the film has a commercial release in Spain, ensuring the local audience has access to the work and promoting the national film market.
How Shooting in Spain can support your coproduction
Filming movies in Spain benefits from a favorable legal framework that provides access to significant tax incentives and strategic support from agencies like Shooting in Spain, your ideal partner when it comes to understanding complex legal requirements and carrying out the application process. We will assist you at every stage, ensuring your coproduction accesses all available benefits and successfully develops in this top-tier filming destination.
If you don’t know how to apply for coproduction status in Spain, Shooting in Spain is the path to success on the big screen.
