Germany Enters the Tax Credit Arena for Hollywood Filming

It seems like everyone wants their share of the location-shooting magic. Just last week,  the German government announced plans to introduce a new tax incentive program in its 2025 budget, hoping to make Germany a more attractive destination for international film and high-end series productions. In line with recent moves from the Australian government, they will offer a rebate of up to 30% on local production costs, funded collaboratively by the federal government and German states. Brandon Blake, our entertainment attorney Los Angeles from Blake & Wang P.A., shares the news.

Brandon Blake

A Hoped-For Incentive

German studios and industry groups have been pushing for this change for a while, seeing it as key to remaining competitive in the global entertainment market. After all, their close neighbors, like Spain and parts of Eastern Europe, have already been luring international productions to their shores with generous incentives. Ironically, even some key German productions, like the recent remake of All Quiet on the Western Front, chose to film outside the country due to this lack of local incentives.

The Details of the Incentive

The proposed tax rebate plan is expected to launch in early 2025. It still needs the necessary approvals from the German cabinet, parliament, and state governments. The criteria, entry thresholds, and eligible costs will be refined in the coming weeks, so we have little detail on those for now.

Berlin, alongside Munich, Hamburg, and the picturesque Bavarian Alps, were once popular filming destinations, buoyed by well-developed infrastructure, skilled film crews, and favorable exchange rates. However, it has lost prominence recently as neighboring European countries offered more generous financial incentives. Germany is hoping that this will be a key step in regaining a competitive edge in the local film arena. It will be interesting to see if it can regain that prominence in the wake of these new tax credit reforms.

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