The Minister of Universities, Science, Innovation and Culture of the Government of the Canary Islands, Migdalia Machín, has celebrated the agreement with the Minister of Finance, María Jesús Montero, for the elimination of the limit on tax aid to audiovisual productions in the Canary Islands, which took place on April 9 at the Ministry's headquarters in Madrid.
As a result of the agreement, the limit on tax breaks is eliminated, which, until now, could not exceed 55 million euros, which limited investment in the Canarian audiovisual sector. Before the agreement, if, for example, a large film production benefited from a deduction of 36 million euros, it only left 19 available for the rest of the productions.
For Machín, this agreement “will place the archipelago at the center of audiovisual production worldwide, making it an attractive place for large productions, and above all, it positions us as a leading enclave in Europe for the audiovisual sector.” In this sense, the counselor appreciates “the effort and demands of the Audiovisual Cluster of the Canary Islands and the entire industry for their contribution to making this agreement a reality today.”
The demands of both the Canarian executive and the sector are based on the fact that this Canarian differential went from being a sectoral aid, for which a threshold of 55 million euros per regime and per year is established, to being a regional operating aid, which means that there is no limit to annual deductions.
To receive this aid, it is necessary to obtain the Canarian Certificate of Audiovisual Work, issued by the General Directorate of Cultural Innovation and Creative Industries of the Canary Islands, headed by Cristóbal de la Rosa, which depends on the Ministry of Universities, Science and Innovation of the Government of the Canary Islands, which grants the character of a work “made in the Canary Islands”. To obtain this certificate, it is necessary to hire a series of professionals with certain profiles in the Canary Islands and comply with a minimum filming time; and in the case of foreign productions, they must accredit a required expense in the islands.
The audiovisual sector is a booming industry in the islands, with its investment in the Canary Islands increasing exponentially in recent years, as well as the creation of direct and indirect jobs. The growth in the number of productions in the Canary Islands is the issue that has led to the elimination of the 55 million limit, an issue that is now resolved with the modification of the regulations.
“The Canary Islands is a beautiful place where any corner is ideal to take it to the screen, in addition to having favorable climatic or security conditions, beyond the economic issue, which make us the focus of producers,” said the counselor, Migdalia Machín.
This deduction represents an exercise in equal opportunities for Canarians compared to other citizens of the European Union, due to the uniqueness of the outermost region of Europe, our distance from the rest of the continent and the particularity of a fragmented territory.