Tax Breaks and Filming in Ireland
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Filming in Ireland offers a wide array of settings only a short flight from the East Coast of the United States - locations vary from sweeping landscapes to cobblestoned Georgian streets, quaint stone farmhouses to splendid manors. Ireland has long been a favoured shoot location for international production companies, boasting the likes of blockbuster features such as Game of Thrones and Star Wars.
As film location scouts, we know that one of the key factors that make Ireland an attractive location for hire is the generous tax breaks offered by the Irish government. These incentives, coupled with the country’s unique scenery and professional production services, makes filming in Ireland a lucrative proposition.
At the heart of Ireland's film incentives program lies the Section 481 Film Tax Credit, a generous tax relief designed to support film and television productions that choose to shoot in the country.
The film relief includes the production of feature films, short films of feature quality, television dramas, animations, and creative documentaries. Under this scheme, eligible productions can benefit from a tax credit of up to 32% of eligible Irish expenditure.
To qualify for Section 481 Film Relief, productions must meet certain criteria, including a minimum spend requirement in Ireland and adherence to cultural and employment standards set by the Irish government.
In addition, the Irish legislation specifies that a special purpose production company, referred to as a qualifying company, is set up for each film and that the costs be incurred by the qualifying company. This producer company must be resident in the State or an EEA State and carries on a business in the State through a branch or agency. As a result, many international production companies will opt to work with a local Irish production company to avail more seamlessly of the Film Tax Credit.
To qualify for the tax relief, the minimum amount that must be spent on the production is €250,000 (this is known as the qualifying expenditure in the legislation) and the minimum eligible expenditure is €125,000.
Eligible expenditure is more specifically the total cost of production less costs expended outside the State and, of the costs expended in the State, less those costs not incurred on employees, labour only services or certain goods, services or facilities under Part 8, Regulations. International production companies should carefully read up on the relevant materials published by Revenue in order to calculate these accurately.
The third and final piece of the criteria to be met is achieved by having a cultural certificate issued by the Minister for Tourism, Arts, Culture, Gaeltacht, Sport and Media.
To receive a cultural certificate, the film must satisfy either or both the Culture test or the Industry development test.
The Culture test states that the film must be of importance to the promotion, development and enhancement of the national culture including, where applicable, the Irish language.
To pass the Industry development test, the production company must show that the film production will act as an effective stimulus to film making in the State through, among other things, the provisions of quality employment and training and skills development opportunities. More guidance on the cultural certificate application can be found here.
The amount of relief due depends on the production costs of the qualifying film. The credit is 32% of whichever is the lowest of: eligible expenditure, 80% of total qualifying film production costs or €70 million.
A claim for the credit can be made in full after the film is completed. Alternatively, a claim for up to 90% of the credit based on budgeted expenditure can be made, with the balance claimed on completion. The submission of all of these documents is directly via the Irish Revenue online portal (ROS), however seeking appropriate tax advice from local authorities or qualified professionals familiar with Section 481 is recommended.
Beyond the basic tax relief on the core production expenditure in the State, Ireland also offers a few other relief options that may give additional incentive to a production company considering shooting in Ireland.
As a known film production hub, Ireland has entered into co-production treaties with several countries, providing additional benefits for projects that are official co-productions between Ireland and a treaty partner. These treaties offer filmmakers access to international funding, creative resources, and distribution networks, enhancing the overall competitiveness of Irish productions on the global stage. These include EU states and select EEA states, as well as Canada, Australia, New Zealand, and South Africa. Learn more about international co-productions here at Screen Ireland.
Ireland also offers incentives for post-production work, including a Section 481 credit for post-production on eligible projects. Productions can avail of a Section 481 credit for post-production activities carried out in Ireland, such as editing, sound design, and visual effects. This holistic approach to incentivizing the entire production process further solidifies Ireland's position as a top destination for filmmakers seeking high-quality services and support.
International production companies should take note that the Regional Uplift scheme, where productions that film in specific regions designated by the state for an increased tax credit percentage, is in the process of being phased out and will not apply from production undertaken in 2024 and onwards.
While the benefits of filming in Ireland are clear, navigating the application process for tax incentives can be a complex task.
To ensure a smooth and successful application, filmmakers are advised to consult with experienced tax professionals or local production companies who are well-versed in Ireland's film incentives program. By seeking guidance early in the planning stages, filmmakers can maximise their chances of securing the full range of incentives available to them.
SoScout’s shoot and accommodation booking services are helping to further develop the resources available to production companies coming to Ireland, making the experience more professional and tailored to your production’s needs.
Ireland offers various incentives for filmmakers to bring their creative visions to life in a dynamic and supportive environment. Whether you are a seasoned producer or a first-time filmmaker, Ireland's rich cultural heritage, breathtaking landscapes, local network of production offerings and financial incentives make it an ideal destination for your next production.
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