The audiovisual sector represents not only a key cultural expression, but also an industry with a growing economic impact in Spain. Whether you are a producer, audiovisual company or investor, understanding how the specific taxation of this sector works -and how to take advantage of its tax deductions- is essential to optimize your projects.
In Advixy, digital and integral consultancy, we help our clients in the audiovisual sector to maximize their tax benefits and make the most of the special regimes both in the Canary Islands and in the Peninsula. Below, we explain how it works.
Taxation of the Audiovisual Sector in Spain
Audiovisual activities (film production, series, animation, video games, etc.) are eligible for important tax incentives included in the Corporate Income Tax Law, articles 36.1 and 36.2, under certain conditions.
1. Deduction for Domestic Production (Art. 36.1 LIS)
Production companies making Spanish productions can benefit from a deduction of up to 30% of the first 1 million euros of the deduction base, and 25% on the excess.
Key requirements:
- ICAA cultural certification.
- Minimum expenditure in Spanish territory.
- Maximum deduction limit: 10 million per production.
2. Deduction for International Production (Art. 36.2 LIS)
If the production is international, the incentive can reach 30% on the first million and 25% on the rest, provided that:
- Spending in Spanish territory exceeds 1 million euros.
- The Spanish company provides services to a foreign production company.
Tax Regime in the Canary Islands: the Great Opportunity
The Canary Islands offer even more advantageous conditions than the state regime. Thanks to the Economic and Fiscal Regime (REF), the Article 36 deductions are significantly increased:
🔹 Deduction for National Production in the Canary Islands:
- 50% on the first 1 million euros.
- 45% on the excess.
- Limit of 18 million euros per production.
🔹 Deduction for International Production in the Canary Islands:
- 50% directly on eligible expenses in the Canary Islands.
- Limit also of 18 million euros.
This makes the Canary Islands a true audiovisual hub. Not only for its climate and landscapes, but also for the fiscal profitability for filming, animation and post-production.
Other Tax and Complementary Benefits
- ZEC (Canary Islands Special Zone): Corporate Tax at 4% for audiovisual companies with real activity and personnel hired in the Canary Islands.
- Reduced IGIC instead of VAT.
- Social Security bonuses for hiring in the islands.
- Institutional support through Film Commissions and regional subsidies.
How can Advixy help you?
In Advixy we have been advising national and international production companies since 2021. We accompany you in all phases of the project:
✅ Optimal fiscal structuring of the project.
✅ Processing of certifications and deductions.
✅ Support in financing through investors who monetize deductions.
✅ Integral accounting, tax and labor management.
✅ Advice on incorporation and ZEC.
In addition, if you have an audiovisual project and want to set up in the Canary Islands or need to operate in the Peninsula with tax efficiency, we help you to make strategic and regulatory decisions with total security.
Do you have an audiovisual project and want to maximize its tax profitability?
Contact us at advixy.com and discover why we are the reference consultancy in audiovisual taxation in Spain.
