Attractive ‘cash discount’ incentive for the US, UK, Spain and France

aThe data is from a study conducted by the PlanAPP Competence Center, commissioned in August 2022 by the Minister of Culture, Pedro Adão e Silva, on the film and audiovisual production incentive program called “cash discount”, created within the framework of the Tourism and Cinema Support (FATC).

This fund was established in 2018 with the aim of promoting the country as a tourist destination and attracting more foreign production companies that wish to produce films, series or other audiovisual works in Portuguese territory, with the participation of national production companies.

In the balance of five years of existence – between 2018 and 2022 – PlanAPP has reported 168 supported projects, with a total investment of 238.1 million euros. The study says the total amount of incentives was 64.3 million euros.

Of the 168 supported projects, PlanAPP shows that 139 have actually been approved, of which 54 are from national production and 85 from international production structures.

On average, each international project – out of 85 – received incentives worth 366 thousand euros and represented an average investment of 1.3 million euros in Portugal, meaning that each euro of incentives represents four euros in return.

By country of origin with products covered through the Cash Discount, the study reveals that in five years, the US has acquired 11 supported projects, “with an accompanying investment amount of €33.5 million”. The United Kingdom followed with six projects and an investment of seven million euros.

With regard to co-production projects, where Portugal is a majority or minority partner, the co-productions with Spain and France stand out: with Spain, there were 15 co-productions, with an investment of 14.1 million euros, and with France there were 154 co-productions, including 12.9 million euros.

On the Portugal Film Commission page it is possible to check some of the projects covered by the “cash discount” system, shot in Portugal, between Portuguese productions and international co-productions and vice versa.

Among them are the Iberian series “Agua Seca”, “Maré Negra” and “Crimes submersos”, the international series “House of the Dragon”, the Spanish series “Casa de Papel” and the films “Frankie”, “Nayola”, “Amadeo” and “Restos do Vento”.

The “cash rebate” incentive covers up to 25% of eligible expenses – related to personnel and access to services, for example – by film and audiovisual production companies, especially foreign, that wish to shoot on Portuguese territory.

The Tourism and Cinema Support Fund, in which the “cash discount” was included, had to be boosted in 2022, by 10.9 million euros, to finance 28 productions that were excluded from this financing mechanism.

The initial fund for 2022, at €12m, ran out in May, given high demand for that stimulus.

After studying the “cash discount,” the Minister of Culture promised to make changes to the rules for accessing this mechanism for this year, “assuming a commitment to maintaining the incentive system until the end of 2026.”

According to the guardianship, applications to the Tourism and Cinema Support Fund will be in two stages: the first will start on April 3, although budget allocations to support the project have not yet been disclosed.

The second phase of applications, “with rules defined and budget allocated,” will open in the last quarter of this year.

This study was carried out by the Technical Policy Evaluation Unit of PlanAPP (Center for Public Administration Planning, Policy and Foresight), jointly with the Office of Strategy, Planning and Cultural Evaluation and the Office of Strategy and Studies at the Ministry of Economy.

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