Film tax incentives in the Basque Country
Comparing film tax rebates in Spain? The Basque Country, in the north, offers one of Europe's highest incentives: up to 60% of what you spend here, on the same terms for foreign and Spanish productions. Here is how it works in San Sebastián, Bilbao and Vitoria-Gasteiz, what it is really worth in cash, and how to claim it.
Estimate your incentiveTax deduction on eligible spend when more than half of it happens in the Basque Country.
At a glance
How the Basque film tax incentive works
The Basque Country (Euskadi) sets its own corporate tax. Each of its three provinces, Gipuzkoa (San Sebastián), Bizkaia (Bilbao) and Álava (Vitoria-Gasteiz), runs a film incentive that is more generous than Spain's national one.
The incentive is a deduction from corporate income tax, earned on what a production spends. It is generated as payments are made, so it builds up through prep and shoot. The cash, however, comes later: after the fiscal year in which the production wraps, once costs are audited and the tax return is filed (see section 04).
Which province's rules apply depends on where the producer claiming it is tax-resident, not where you shoot. A production serviced by a Gipuzkoa company can film anywhere in the Basque Country and still qualify for the top rate, because Gipuzkoa and Álava count spend across the whole Basque Country.
There are no rules on nationality of the story or the crew beyond a cultural test, and since the 2019–2024 reforms Spanish and foreign productions are treated the same.
Tax credit rates: Gipuzkoa, Bizkaia, Álava
| Gipuzkoa | Álava / Araba | Bizkaia | |
|---|---|---|---|
| Top rate | 60% | 60% | 60% |
| How the rate is set | Share of eligible spend in the Basque Country: over 50% → 60%; 35–50% → 50% | Same as Gipuzkoa | Share of spend in Bizkaia: over 50% → 60%; 35–50% → 50%; 20–35% → 40%; below 20% → 35% |
| Cap | €10M per production · €3M per episode | €10M per production · €3M per episode | No per-production cap |
| Aid ceiling | Deduction plus other public aid ≤ 50% of production cost (60% for some European co-productions; no limit for "difficult works" such as first and second films) | ||
| Eligible base | Production cost + copies + publicity and promotion borne by the producer, less subsidies received. For foreign productions: the production cost borne by the Spanish executive producer. | ||
| Use against tax | Up to 50% of the claimant's tax liability per year; unused amounts carry forward (Bizkaia: up to 30 years) | ||
| Legal basis | NF 2/2014 Corporate Tax, as amended by NF 2/2024 (from 1 Jan 2024) and NF 2/2025 | NF 37/2013 Corporate Tax | NF 11/2013 Corporate Tax, art. 66 quater, as amended by NF 9/2022 |
For comparison: Spain's national incentive for foreign productions (art. 36.2 Corporate Tax Law) is 30% on the first €1M and 25% above, with a €1M minimum Spanish spend and a €20M cap. The Basque regime applies instead of the national one when the claiming producer is Basque tax-resident; the two are not stacked.
Foreign productions: the executive producer route
A non-resident production company doesn't claim the Basque incentive itself, and doesn't need a Spanish co-producer. The incentive is claimed by its local executive producer: the Basque-based production service company it hires to carry out the shoot.
Turning the tax credit into cash
A service company rarely has enough tax bill to absorb a large deduction. So the deduction is usually transferred to Basque taxpayers who finance the production and use it against their own tax.
- Financing contract. Basque investors sign with the producer and fund the work in exchange for the right to use the deduction. They get no IP or ownership.
- Legal floors. An investor's deduction can't exceed 120% of what it paid in. In Gipuzkoa, for contracts signed from 1 January 2026, the producer must receive at least 78% of the deduction's value after broker fees.
- What you really net. After broker fees, costs that don't qualify and the investor's margin, productions typically net around 40–45% of their total Basque spend in cash at the top rate.
- When it pays out. After the fiscal year in which the production wraps: costs audited, certificates issued, tax return filed. Budget it as money received after delivery, not during the shoot, and arrange any bridge financing early.
Example: €1M spent through your Basque executive producer, of which around 90% typically qualifies, generates a deduction of about €540k at 60%. That turns into roughly €400k–450k of cash after the production closes. Confirm with your tax adviser and the investor terms.
Basque incentive calculator
Requirements to qualify
FAQ: Basque film incentives
How much is the Basque Country film tax incentive?
In Gipuzkoa and Álava the deduction is 60% when more than half of the eligible spend is incurred in the Basque Country, and 50% when it is between 35% and 50%. In Bizkaia it ranges from 35% to 60% depending on the share spent in Bizkaia.
Can foreign productions use the Basque tax incentive?
Yes. Spanish and foreign productions are treated the same. A non-resident production company claims it through its local executive producer: a Basque-based production service company that carries out the shoot, never holds the IP and is registered with the ICAA.
Do I need a Spanish co-producer?
No. A production service agreement with a Basque-based executive producer is enough. You keep 100% of the rights. A co-production is a different structure, with shared IP.
Is it a tax rebate like the UK or Ireland?
No. It is a corporate tax deduction. Productions convert it to cash by transferring it to Basque tax investors under a financing contract. In practice, after broker fees, non-qualifying costs and the investor's margin, productions typically net around 40–45% of their total Basque spend.
When does the money come in?
Later than most producers expect. The deduction builds up as you spend, but the cash comes back after the fiscal year in which the production wraps, once costs are audited, the certificates are issued and the tax return is filed. Budget it as money you receive after delivery, not during the shoot, and plan any bridge financing early.
How does it compare with Spain's national incentive?
Spain's national incentive for foreign productions is 30% on the first €1M and 25% above, with a €1M minimum spend and a €20M cap. The Basque Country offers up to 60%, with the cash arriving through tax investors. Which works best depends on your budget, locations and cash-flow needs.
Is there a minimum spend?
The Basque rules don't set a fixed minimum like Spain's €1M. The rate depends on the share of eligible spend made locally: in Gipuzkoa and Álava you need at least 35% in the Basque Country, while Bizkaia gives 35% even with a small local share.
Is there a cap?
In Gipuzkoa and Álava the deduction is capped at €10 million per production and €3 million per series episode. Bizkaia has no per-production cap. In all three territories the incentive plus other public aid generally can't exceed 50% of the production cost.
What costs qualify?
The production cost, plus copies, publicity and promotion borne by the producer, minus any subsidies received. For a foreign production, it is the production cost borne by the Basque executive producer: local crew and cast, locations, equipment, accommodation, transport and services.
Do TV series, documentaries and animation qualify?
Yes. Feature films, TV and streaming series, documentaries, animation and shorts can all qualify if they obtain the cultural certificate. Series in Gipuzkoa and Álava are capped at €3 million per episode.
Do commercials qualify?
The incentive is written for audiovisual works such as films, series, documentaries, animation and shorts that obtain a cultural certificate. Advertising generally doesn't fit those requirements. Commercials still benefit from Basque locations, crews and costs; we're happy to quote either way.
Can I shoot in Bilbao with a San Sebastián service company?
Yes. Under Gipuzkoa's rules, spend anywhere in the Basque Country counts toward the rate, so a shoot split between San Sebastián, Bilbao and the coast can still reach 60%.
What about shooting across the border in France?
Spend in France doesn't count toward the Basque share. Many productions combine a Basque base with a few French Basque locations such as Biarritz, Saint-Jean-de-Luz or Guéthary. We plan the split so the Basque share stays above the 50% threshold.
Can I combine it with other incentives?
The Basque regime replaces Spain's national incentive for the claiming producer; it doesn't stack with it. Other public aid is allowed, but the total, including the deduction, generally can't exceed 50% of production cost.
Planning a shoot in the Basque Country?
Txapela Films is a production service company in San Sebastián, covering the Basque Country, northern Spain and the French Basque coast. We act as your local executive producer and handle locations, permits, crew, equipment, budgets and the incentive paperwork, in English, German, French or Spanish.
- Diputación Foral de Gipuzkoa, Norma Foral 2/2024 of 10 May on tax incentives for culture (BOG 17 May 2024), effective 1 January 2024; summary by Garrigues.
- Diputación Foral de Gipuzkoa, Norma Foral 2/2025 of 24 November (financing contracts from 1 January 2026).
- Diputación Foral de Bizkaia, culture incentives (NF 9/2022); PwC summary and Invest in Biscay presentation.
- Spain Film Commission, Manual on tax incentives for audiovisual productions in Spain (reviewed June 2025).
- Film Basque Country / Basque Audiovisual, comparison of tax incentives by historical territory (October 2024).
This page is a general guide, not tax or legal advice. Rules change and each production's eligibility depends on its structure, so confirm with a qualified adviser before relying on any figure.