Agência para o Investimento e Comércio Externo de Portugal


The Government is preparing "a solution" to respond to the "enormous demand" of Portugal as a filming destination, because this year's budget of tax incentives for foreign productions has already been exhausted.

According to the Institute of Cinema and Audiovisual, this year there were 43 applications for tax incentives for filming in Portugal, within the scope of the Tourism and Cinema Support Fund, with the maximum ceiling of 12 million euros budgeted for 2022 having already been reached.


This "high number" of applications "demonstrates the interest in this financial mechanism, combined with a resumption of activity in the film sector, in contrast to 2020 and 2021, years of the pandemic and consequent reduction in shootings", explained the Instituto do Cinema e Audiovisual (ICA).


At stake is a recent funding mechanism, under the 2018 Tourism and Cinema Support Fund, which provides incentives for foreign producers who want to make films, series or other audiovisual works in Portuguese territory and with the involvement of national producers.


Tax incentives

To obtain tax incentives, producers have to make a minimum expenditure in Portugal between 250,000 euros and 500,000 euros, depending on the projects to be filmed in the national territory or depending on the participation of Portuguese professionals in different areas of production.


The general rate applicable to eligible expenses to access the 'cash rebate' is 25%, which can be increased to 30%, according to legislation.


"This mechanism proved to be a success. There has, so far, been a global investment in Portugal in the total amount of 171 million euros for a total incentive value attributed of 46 million euros", revealed the ICA.


Last week, the ICA revealed that access to this financial mechanism of the Tourism and Cinema Support Fund was suspended, precisely because the budget allocation scheduled for this year had been reached.


With the application process still suspended in the first half of this year, the ICA revealed that the Government, through the areas of Economy and Culture, "is working on a solution that responds to the enormous demand that Portugal has had as a filming destination".