The Spanish government has released a draft of the proposed fiscal reform that would set tax credits on foreign and local film investments at 20 percent in order to continue promoting the film industry in the country.

At the moment, the draft of the fiscal reform, which now is making its way through the Parliament, establishes that investments in film productions in Spain will be eligible for a 20 percent tax deduction on the first million Euros and 18 percent for everything over the first million, up to €3 million deduction at the maximum. The Government ensures that this decision is a boost for the cultural industry.

Spanish producers, which were hoping that the new deductions would be in the range of 30 percent, will keep fighting to reach a more competitive tax deduction, like the 25-40 percent offered by the U.K., Germany and other European countries. Giving international productions a greater tax incentive to shoot in Spain would make Spain a superb set, backed by its established audiovisual industry, spectacular locations and an efficient communications network.