Just over two years ago, Hungary passed a dynamic domestic film law, which is still gaining international attention. Many producers hail it as the most cinema-friendly incentive package in the world.
In a bid to boost domestic cinema and attract international productions, Hungarian lawmakers OK’d a statute that offers rebates to foreign films shooting in country and investment incentives designed to encourage corporate sponsorship of the industry.
According to the law, a foreign (or Hungarian) producer can receive a rebate up to 20% on all money spent while shooting on Hungarian soil, which local producers have called a lightning rod for business. Laszlo Krisan, managing director of the Korda Film Studio (see In Focus, below) admits the new tax regime is a major draw.
“It is a simple question of calculation,” he says. “Productions get 20% of their budget in Hungary rebated, which is significant. Spending $8 million is not the same thing as spending $10 million.”
To further fuel Hungarian-based productions, the same law offers tax deductions to individuals and businesses investing in films shot in Hungary. A Hungarian company can receive 100% deduction on all money invested in a film produced on native soil for a total amount that does not exceed 20% of the movie’s total budget. Translation: Foreign producers may find investment funds in Hungary to further supplement their budgets.
- Hungarian Film Commission: Web: filmunion.hu; Contacts: Budapest Office, Phone: +36 1 351 7696; Fax: +36 1 352 8789; Los Angeles Office, Phone: (323) 656-1805; Fax: (323) 259-8700
- Hungarian Film Office: Phone: +36 1 327 7070; Fax: +36 1 327 0220
- Legal Advice on Law: Web: law-now.com;Ormai es Tarsai, CMS Camera McKenna. The Hungarian partners of this British law office offers services in applying for and facilitating incentives.
nYbl Palota: Phone: 36 1 483 4800; Fax: 36 1 483 4801; Email: email@example.com
Budapest real estate pro Sandor Demjan, in a service partnership with Hungarian-born indie producer Andrew Vajna, is building the x150 million ($188 million) Korda Film Studio just outside of Budapest. The project is expected to dramatically boost Hungary’s competitiveness as a European destination for foreign films when it is completed in early 2007.
With six soundstages and state-of-the-art facilities, the Korda studio will boast both high-tech facilities (specialized soundstages with air conditioning and NC 25-standard soundproofing) capable of accommodating top Hollywood productions, support services such as on-site computer-graphic teams and soundtrack recording studios.