Financial Incentives for film production in Malta
Cash Incentive for filming in Malta
The following is a summary of the incentives offered by Malta.
In short, the incentives are in the form of a cash grant given to eligible productions on the qualifying expenditure incurred in Malta. There is also a generous allowance for expenses made to non-Maltese crew and non-Maltese entities if made in direct and physical connection with work taking place in Malta.
A minimum of 30% of the eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete. (One can apply for 10% of the rebate to be paid once shooting begins, provided all the necessary accounts is presented properly.) For films which portray Malta as Malta and/or have special Maltese cultural content, the rebate can be as high as 35%. If the Malta Film Studios (aka water tanks) forms part of the expenditure then the rebate can reach 40%.
The film commission is currently not too strict on the criteria for raising the rebate from 30 to 40% as long as there is a genuine effort to maximise local resources.
Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided that they are at least partially filmed in Malta.
A qualifying production is required to present an application which would include a detailed projection of the Malta budget for the production and completion of the Cultural Test as included in the application form. Upon assessment a provisional approval will be granted within a month or less.
The final approval would be granted upon review of a final application, including audited accounts and a detailed analysis of the production expenditure in Malta, after shooting is completed. The cash rebate is forwarded to a qualifying production no later than five months from the date of receipt of the final application. However (as of 2023) in practise this is currently taking longer because of the large amount of films shooting in Malta each year.
When handling the cash rebate incentive, the PCP places the foreign producer's production company as the direct beneficiary of the rebate and therefore the government effects payment to the company's bank account abroad.
Click here for FAQ
Fiscal Incentives - The Malta Enterprise Act
Companies or individuals investing in audiovisual infrastructure in Malta can qualify for tax credits of up to 35% of their investment on the islands. The Government of Malta, under various legislative provisions, offers filmmakers the possibility to produce and distribute audiovisual productions from Malta and pay the lowest corporate tax rates in the European
There is also an incentive for foreign company directors/investors setting up a company in Malta whereby the final company tax paid is 5% as opposed to the standard 35%.
Update as of 30 March 2023: This incentive resulting in 5% tax is expected to be removed within the next three years in order to abide to new European Commission policies regarding minimum tax rates.
The following is a summary of the incentives offered by Malta.
In short, the incentives are in the form of a cash grant given to eligible productions on the qualifying expenditure incurred in Malta. There is also a generous allowance for expenses made to non-Maltese crew and non-Maltese entities if made in direct and physical connection with work taking place in Malta.
A minimum of 30% of the eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete. (One can apply for 10% of the rebate to be paid once shooting begins, provided all the necessary accounts is presented properly.) For films which portray Malta as Malta and/or have special Maltese cultural content, the rebate can be as high as 35%. If the Malta Film Studios (aka water tanks) forms part of the expenditure then the rebate can reach 40%.
The film commission is currently not too strict on the criteria for raising the rebate from 30 to 40% as long as there is a genuine effort to maximise local resources.
Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided that they are at least partially filmed in Malta.
A qualifying production is required to present an application which would include a detailed projection of the Malta budget for the production and completion of the Cultural Test as included in the application form. Upon assessment a provisional approval will be granted within a month or less.
The final approval would be granted upon review of a final application, including audited accounts and a detailed analysis of the production expenditure in Malta, after shooting is completed. The cash rebate is forwarded to a qualifying production no later than five months from the date of receipt of the final application. However (as of 2023) in practise this is currently taking longer because of the large amount of films shooting in Malta each year.
When handling the cash rebate incentive, the PCP places the foreign producer's production company as the direct beneficiary of the rebate and therefore the government effects payment to the company's bank account abroad.
Click here for FAQ
Fiscal Incentives - The Malta Enterprise Act
Companies or individuals investing in audiovisual infrastructure in Malta can qualify for tax credits of up to 35% of their investment on the islands. The Government of Malta, under various legislative provisions, offers filmmakers the possibility to produce and distribute audiovisual productions from Malta and pay the lowest corporate tax rates in the European
There is also an incentive for foreign company directors/investors setting up a company in Malta whereby the final company tax paid is 5% as opposed to the standard 35%.
Update as of 30 March 2023: This incentive resulting in 5% tax is expected to be removed within the next three years in order to abide to new European Commission policies regarding minimum tax rates.