With its long Mediterranean coastline and temperate seasonal climates, Italy offers multiple advantages for filmmakers. They’re also drawn to the country by its plethora of historical and picturesque cities (Rome, Venice, Naples, Milan), its classic countryside vistas (Tuscany, the Dolomites, Sicily) and, last but not least, the nation’s 30% tax credit.
That credit has a ceiling of 20 million euros, or about $22.6 million, per company. The tax credit is based on production expenses incurred in Italy. Italian eligible production costs cannot exceed 75% of a project’s total budget
The major benefit of the Italian tax credit is that producers receive it during production, month to month, as a cost reduction. Many producers prefer this method, which can reduce costs as they go along.
For a project to qualify, 51% of below-the-line employees must be Italians or citizens of the European Union. A cultural test also applies.
Feature films recently shot in Italy include “Bond 25” (2020), “Spider-Man: Far From Home” (2019), “Aquaman” (2018), “Solo: A Star Wars Story” (2018), “The House That Jack Built” (2018), “Wonder Woman” (2017), “Call Me by Your Name” (2017), “Murder on the Orient Express” (2017) and “Kingsman: The Golden Circle” (2017).
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|22.6m||Annual cap per company|
|51%||Portion of below-the-line employees who must be Italian or EU citizens|
Information courtesy of the Production Incentives team at Entertainment Partners.