TAX CREDIT AND FUNDS

The Italian Tax Credit is a government-backed financial incentive designed to attract international film, TV and web productions to shoot in Italy, either fully or partially.

Under the latest legislation introduced in 2025, the Italian Tax Credit scheme has undergone major revisions, now offering up to 40% in savings on eligible production costs incurred in Italy. The incentive is aimed at enhancing Italy’s global competitiveness while promoting local talent, infrastructure and locations.

• Up to 40% tax credit on qualified expenses incurred in Italy.
• Immediate benefit: the credit can be used monthly to offset tax liabilities via the Italian Production Company.
• Eligible for foreign productions working with Italian executive producers.
• Option to transfer/sell the tax credit to banks or third parties, unlocking liquidity.

To access the Italian Tax Credit, a Foreign Production Company must collaborate with an Italian Production Service Company that is legally registered and meets specific requirements set by the Italian Ministry of Culture (MiC).

1. To access the Italian Tax Credit, a Foreign Production Company must collaborate with an Italian Production Service Company that is legally registered and meets specific requirements set by the Italian Ministry of Culture (MiC).
   • Response time: within 60 days.
   • Once approved, the tax credit can start being used immediately during productionvia monthly tax offsetting.
   • This “immediate liquidity” is one of the scheme’s strongest advantages.
2. Eligible Expenses
   • Only costs paid directly by the Italian Production Companyare considered eligible.
   • New rules introduced in 2025 impose stricter caps on above-the-line costs (e.g., talent, directors, script), ensuring balanced spending and transparency.
3. Final Application
   Must be submitted within 180 days after the end of all production activities. It includes:
   • A detailed final cost report.
   • A certification by an independent chartered accountant.
   • The tax credit is automatically recognised up to a maximum of 10% more than the tax credit submitted in advance. For costs exceeding 10%, the tax credit is recognised upon specific request for exemption and based on available resources.
4. Selling the Tax Credit Italian law allows the production company to sell the tax credit to a financial institution (such as a bank), facilitating an accelerated transfer of benefits to the Foreign Production Company. This is especially useful after production has ended.

Download the Italian Tax Credit Guide (PDF)