Portugal 🇵🇹

Portugal offers two primary financial incentives to attract film and audiovisual productions: the Cash Rebate and the Cash Refund programs. Below is a detailed breakdown of the incentives:

1. Portugal Filming Incentives - Cash Rebate and Cash Refund Programs

Cash Rebate:

A financial incentive providing a percentage rebate on eligible production expenditures incurred in Portugal.

Cash Refund:

A financial incentive offering a refund on qualifying production expenses, aimed at higher-budget productions.

2. Film Incentives Breakdown

Cash Rebate:

Rebate Percentage:

• Starts at 25% and can increase up to 30%, determined by a cultural test.

Eligible Productions:

• Cinema, audiovisual, and VOD productions, including domestic, foreign (executive/services), and co-productions.

Minimum Expenditure:

• €500,000 for fiction or animation projects.
• €200,000 for documentaries or post-production projects.

Support Cap:

• Up to €1,500,000 per project.

Annual Budget:

• Up to €14,000,000 for 2024.

Application Phases:

• Two phases per year; applications for the 2nd phase of Cash Rebate 2024 closed on October 23.

Advance Payments:

• Available in installments.

Credit Requirement:

• Mention of the Cash Rebate in the work’s credits is mandatory.

Governing Body:

• Managed by the Instituto do Cinema e Audiovisual (ICA) under the Tourism and Cinema Support Fund.

Application Process:

• Applications must be submitted before incurring eligible expenditures.
• Applicants should establish a company or branch subject to tax in Portugal and register with the Register of Cinematographic and Audiovisual Entities.
• Applications are submitted through the HAL platform.

Cash Refund:

Refund Percentage:

• 30% on the first €2,000,000 of eligible expenditure.
• Up to 25% on the surplus.

Eligible Productions:

• Cinematographic and audiovisual works, including fiction, animation, and documentaries.

Minimum Expenditure:

• €2,500,000 of eligible expenditure within Portugal.

Support Cap:

• Up to €6,000,000 for cinematographic and audiovisual works.
• Up to €3,000,000 per episode for series.

Annual Budget:

• Up to €20,000,000.

Application Basis:

• First come, first served.

Credit Requirement:

• Mention of the Cash Refund in the work’s credits is mandatory.

Governing Body:

• Managed by the ICA.

Application Process:

• Applications must be submitted before the start of production or post-production work.
• Applicants should establish a company or branch subject to tax in Portugal and register with the Register of Cinematographic and Audiovisual Entities.
• Applications are submitted through the HAL platform.

3. Filming Incentives Terms and Conditions

Cultural Test:

• Both incentives require projects to pass a cultural test focusing on the project’s characteristics.

Eligible Expenditures:

• Include all production expenses related to personnel and acquisition of goods and services carried out and taxed in Portugal.
• Expenditures must be reasonable, related to the project, and supported by valid invoices and receipts.

VAT Consideration:

• VAT is deductible whenever the beneficiary entity is a taxable person subject to that tax and can exercise its right to the respective deduction.

Public Support Cap:

• Accumulation of public support is limited to 80% of the project’s eligible expenditure.

Exclusivity:

• The Cash Rebate and Cash Refund cannot be combined for the same production.

4. Governing Body for the Incentives

Instituto do Cinema e Audiovisual (ICA):

• Manages both the Cash Rebate and Cash Refund programs, overseeing applications, evaluations, and disbursements.

5. Filming Incentive Application Process

1. Registration:

• Register with the Register of Cinematographic and Audiovisual Entities.
• Establish a company or branch subject to tax in Portugal.

2. Application Submission:

• Prepare and submit the application through the HAL platform before incurring eligible expenditures.
• Include necessary documentation such as:
  • Sworn statement.
  • Contracts.
  • Budget breakdown.
  • Financing plan.
  • Distribution plan.

3. Evaluation:

• The ICA evaluates the application, focusing on eligibility criteria and the cultural test.

4. Approval and Contract:

• Upon approval, enter into a contract with the ICA outlining the terms of the incentive.

5. Production and Expenditure Tracking:

• Proceed with production, ensuring all eligible expenditures are properly documented and comply with the program’s requirements.

6. Rebate/Refund Claim:

• After production, submit the necessary documentation to claim the rebate or refund.
• The ICA processes the claim and disburses the funds accordingly.

For detailed guidelines and application forms, consult the official ICA website or contact them directly for assistance.