Spain, the Preferred Backlot for International Production: Key Takeaways from PRODU’s Webinar Strategic Guide to Filming

In PRODU’s webinar series dedicated to tax incentives, leaders from Spain’s main audiovisual institutions outlined the competitive advantages the country offers to the global industry.

The session, titled Strategic Guide to Filming in Spain: From Location to Screen, featured representatives from ICEX-Invest in Spain, Canary Islands Film, Castilla-La Mancha Film Commission and Film Madrid. All agreed that the combination of tax incentives, diverse landscapes and a mature infrastructure positions Spain as an exceptional partner for international projects, especially those from Ibero-America.

A BRIDGE FOR FOREIGN INVESTMENT

Elena Moreno, head of the Audiovisual sector at Shooting in Spain (ICEX-Invest in Spain), highlighted the institution’s role as a facilitator and “roadmap” for foreign producers.

“Our goal is to provide individualized guidance and coordinate information so that investors don’t have to knock on doors one by one,” Moreno said.

She noted that Spain has a network of more than 100 offices around the world to address labor, tax and immigration inquiries, in addition to offering national incentives that start with a 30% deduction on the first million euros.

One of the most notable points discussed was the competitiveness of Spain’s tax incentives. Moreno explained that there is a national deduction of 30% on the first €1 million and 25% thereafter, figures that increase in regions with special regimes such as the Canary Islands (with returns of up to 54%) or Navarra and the Basque Country.

“Tax incentives are a great foundation, but they are not everything. Spain offers a rare combination: competitive incentives, robust infrastructure and incredible location diversity. By working with a Spanish producer, you also gain access to European funds exceeding €2.4 billion for business development,” the executive explained.

For ICEX, the key to Spain’s success lies in stability and regulatory clarity. Moreno emphasized that whether for a single shoot or the establishment of a subsidiary in Spain, the institution offers flexible support that builds confidence in the return on investment.

“We want producers to understand the ecosystem in a simple way and make decisions with certainty. We facilitate contact with film, technical and tax experts so that decision-making is efficient and transparent,” Moreno concluded.

THE CANARY ISLANDS: THE ENGINE OF TAX INCENTIVES

Lorena Martín Esteban, cultural management specialist at Canary Islands Film, outlined the factors that have turned the Canary Islands into one of Europe’s most dynamic audiovisual production hubs. Thanks to their status as an EU Outermost Region and their own Economic and Fiscal Regime (REF), the islands offer unique conditions for the global industry.

Because of this special fiscal framework, the Canary Islands offer rebates of up to 54% on the first €1 million of qualifying expenditure.

“Tax incentives in the Canary Islands can reach up to a 54% rebate on the first €1 million of eligible spending and 45% thereafter. The caps are €36 million for feature films and €18 million per episode for series. This makes it an essential territory when considering filming in Europe,” Martín noted.

The Canary Islands Film representative presented the results of the 2025 production balance, revealing steady growth that has brought the sector to a mature stage. Last year, 180 productions were recorded (excluding advertising), up from 154 the previous year and triple the figure recorded in 2017.

“Since 2017 we have tripled the total number of shoots and, from 2024 to 2025 alone, investment in the islands has doubled. These figures demonstrate that the audiovisual industry in the Canary Islands is a mature sector that continues to grow, attracting both international and domestic productions,” she said.

One of the pillars of the Canary Islands’ strategy is fostering co-productions, particularly with Ibero-America. Martín highlighted the existence of a specific minority co-production fund that allows Canary Islands producers to participate in international projects (holding between 10% and 49%), facilitating access to regional subsidies.

“Co-production with Latin America is more than natural—it’s desirable. In the last three calls of our minority fund, 9 of the 16 projects have been co-productions with Argentina, Colombia, Uruguay, Mexico or Brazil. We are ‘Latin America in miniature’ within Spain, both because of our colonial architecture and landscapes and our cultural closeness,” Martín emphasized.

She also highlighted the diversification of the industry into technological sectors. The islands currently host around 30 animation studios that benefit from incentives designed to attract companies and support long-term projects. Additionally, there has been a significant increase in projects choosing the archipelago exclusively for postproduction.

“It’s not just about filming; we are seeing sustainable growth in animation and postproduction. In the Canary Islands we have a variety of locations that is hard to believe—from forests to deserts—which, combined with stable financing tools, creates an ecosystem that is booming,” she concluded.

MADRID: EPICENTER OF INDUSTRY AND TALENT

Xiomara García, General Coordinator of Film Madrid Region, presented record figures and the ambitious roadmap of the Community of Madrid.

Under a new “one-stop shop” vision, the region has evolved from a traditional film commission into a comprehensive audiovisual office designed to attract investment, talent and project development from start to finish.

García highlighted Madrid’s strength as an economic engine, with an audiovisual industry that generated more than €7.2 billion in 2024. This represents 2.6% of the region’s Gross Domestic Product, more than double the national industry average.

“We offer a very mature ecosystem with large-scale, sustained activity. We estimate that 500 shoots took place in our region in the first half of 2025 alone. This level guarantees any company wishing to establish itself here a continuous flow of opportunities and access to more than 29,000 direct professionals,” García said.

She also emphasized the support of the regional government through its Audiovisual Strategic Plan, built on pillars such as competitiveness, internationalization and talent. As a new development, she announced a significant increase in financial support for the industry.

“As part of our strategic plan, we have already announced that we will double the funding for our current aid programs, adding a fourth line specifically dedicated to video games. It is vital to support projects from their earliest stages; one success story is the film *Los Domingos*, whose ‘first stone’ was laid through our development grants before going on to succeed at festivals such as San Sebastián,” she explained.

García stressed Madrid’s strategic connectivity, with the country’s largest airport and direct flights to more than 72 countries, positioning it as the natural entry point for international productions. She also reaffirmed the region’s commitment to the “Spain Brand” through active participation in the board of the Spain Film Commission.

“We promote Madrid, but we promote the Spain Brand. We want to play in a league of collaboration. With Latin America we share not only the language, but also a very similar way of seeing life, and that is where we must work so that Spain occupies the place it deserves in the international industry,” she said.

García added that Film Madrid is organizing professional “dating” meetings to foster co-productions between Madrid producers and those from other regions such as Andalusia and the Canary Islands.

“We want other regions to also have audiovisual activity to showcase the richness of Spanish culture. Madrid is the national production hub par excellence, but we firmly believe in governance and public-private collaboration to strengthen the entire territory,” she concluded.

CASTILLA-LA MANCHA: CREATIVE SPACE AND ADMINISTRATIVE AGILITY

Miguel “Mike” Ángel Villanueva, Film Commissioner of Castilla-La Mancha Film Commission, highlighted the competitive advantages that make this region a key destination for international production.

Located in the “heart of Spain” and being the country’s third-largest territory, Castilla-La Mancha offers a unique combination of privileged logistics and administrative management designed to facilitate producers’ work.

“We are a strategic territory that complements established hubs such as Madrid or Barcelona. Many productions choose our region because they find a place to expand creatively and access infrastructure—roads, buildings, landscapes—that their production requires, with greater agility in the permitting process,” Villanueva explained.

One of the pillars of the Film Commission’s management is the simplification of processes through what they call soft incentives. With a network that reaches nearly 400 of the region’s 919 municipalities, the institution guarantees quick responses in managing permits for heritage sites and natural environments.

“We work hand in hand with local and regional administrations to move quickly with permits. Our community is highly integrated; the Film Commission works in parallel with municipalities and provincial councils to facilitate not only permits, but also access to local technical talent and service companies,” the Film Commissioner said.

As a major announcement, Villanueva detailed the creation of an annual €300,000 fund under a sponsorship model, managed through the Directorate-General of Tourism. Unlike traditional subsidies, this fund seeks projects that use recognizable regional locations to promote film-induced tourism.

“We have created a €300,000 annual fund through a competitive process that functions as pure sponsorship, without the need for cultural certification. What we are looking for are projects that allow our locations to be recognizable. We want audiences in Mexico, Argentina or Colombia to know that Castilla-La Mancha is part of their narrative; we are interested in visual impact and tourism return,” Villanueva emphasized.

The Film Commission not only offers locations, but also conducts an in-depth analysis of the creative-production fit of each script. Villanueva recalled success stories such as the filming of the western *The English*, where the plains of Castilla-La Mancha successfully doubled for the American landscape.

“We curate locations to identify territories that maximize visual value and optimize the budget. We seek the best cost per minute versus aesthetic impact. We accompany the producer in structuring eligible spending in the region to enhance all national incentives, ensuring that the project is both viable and visually distinctive,” he concluded.

Watch the complete webinar