Global Production Incentives to Watch: A Look Back at 2024 and What’s Ahead in 2025

The film and television industry is continuing to evolve as we emerge from years of social and economic challenges. Production incentives are one facet of the industry that has been particularly transformative; in the UK and across Europe, we saw groundbreaking reforms, especially around programs initiated to boost independent film production.

As 2024 comes to a close, it’s clear that global competition for production business is reaching a fever pitch and that territories (large and small) are pulling out the stops—from the UK and Ireland, respectively, introducing 40% incentive programs, to smaller countries like Denmark initiating new incentive programs. Higher incentive rates, expanded eligibility criteria, and simplified processes are catching the eyes of producers from indies to blockbusters like Wicked and Gladiator II.

So, what all happened this year and what can producers expect in 2025?

In this post, I’ll break down the major changes—and players—filmmakers need to know about, so you can make informed decisions to improve your production’s bottom line.

The UK & Europe ramp up incentive offerings

When it comes to production incentives, qualified spend matters. The UK (where Jon Chu’s mega-hit Wicked was filmed) offers a 25.5% to 40% refundable tax credit with no caps on ATL (“above-the-line” roles like directors, producers, and talent) or annual funding, giving the island nation a huge competitive advantage over other locations, including many US states.

In 2024, the UK implemented significant reforms to its film and television incentive programs in four ways:

1. Introduced the Audio-Visual Expenditure Credit (AVEC): Effective from January 1, 2024, AVEC replaced previous tax reliefs for film, high-end TV (at 25.5% after tax), animation, and children’s TV productions (at 29.25% after tax), offering a more generous and streamlined tax credit system.
2. Established the UK Independent Film Tax Credit (IFTC): At 39.75% after tax for qualifying British films with production budgets up to £15 million (approximately USD $19.5 million), the IFTC program aims to support independent filmmakers.
3. Increased Incentives for Visual Effects Expenditures (VFX): Effective April 1, 2025, qualifying costs in film and high-end TV productions will receive a 5% increase in tax relief, resulting in a net rate of 29.25%. The 80% cap on qualifying expenditures for UK VFX costs will also be removed, encouraging more extensive use of VFX in UK productions.
4. Launched a 40% Business Rate Relief: Introduced on April 1, 2024, this incentive provides eligible film studios in England with a 40% reduction in business rates through March 31, 2034, to stimulate infrastructure investment and growth.

These changes aim to enhance the competitiveness of the UK’s creative industries, attract more productions, and support the growth of independent filmmaking. Like Wicked, other blockbusters have also benefitted from such competitive international incentives. Gladiator II filmed in the UK as well as in Malta (which offers a 40% cash rebate that includes non-resident ATL) and Morocco (offering a 30% cash rebate).

Neighboring Ireland is also pursuing independent film projects (up to €20m/USD $22.1) with an 8% uplift on top of Ireland’s 32% base credit. Ireland also offers a 40% incentive for independent film (on par with the UK), establishing a hub for indies—an increasingly vital section of the market. Worth noting is that 90% of Ireland’s incentive is available upfront to producers meeting certain requirements (in effect offering interest-free loans to producers).

Expanding even further, Ireland’s 2025 budget includes a new tax incentive for unscripted television productions—20% on eligible expenditures—which applies to 80% of the total cost of production up to a cap of €15 million.

Heading south, Portugal’s 30% cash refund applies to productions with higher budgets (€2.5m), with a cap of €6M for feature films and €3m per episode for a series. Smaller productions benefit from an existing 25%-30% rebate.

Neighboring Spain continues to attract productions with federal rebates of 25%-30%, supplemented by regional incentives like the Canary Islands’ 45%-50% rebate, the Basque region’s 35%-70% tax credits, and Navarre’s 35% tax credit.

The Czech Republic’s primary incentive rate will now be 25%, up from the previous 20%. Its cap is, in effect being tripled, and the maximum amount the incentive offers has increased to $19m. A 35% production incentive rate is also being introduced for animation and digital productions that don’t include live action.

Denmark will launch a new 25% tax incentive to attract international film and TV productions, starting in 2026, with €17M ($17.5m) allocated annually to the program.

Upping its incentive offering, Germany has proposed a 30% rebate on German production costs for films and high-end series with funding from the federal government and states. Pending approval from the cabinet, parliament, and state governments, the scheme could take effect in as early as January 1, 2025.

Hungary has extended its 30% incentive program through 2030. Notably, 25% of Hungarian spend can be incurred outside of Hungary and still qualify, creating an effective rate of 37.75%. For example, $10m of Hungarian spend would allow $2.5m to be spent outside Hungary (e.g., in the UK on post-production). In this scenario, producers would earn a  $3,750,000 Hungarian credit ($12.5m @ 30%) as well as a $637,500 UK Credit ($2.5m @ 25.5%).

In the Mediterranean region, Greece’s popular 40% rebate is undergoing revisions to make it more sustainable, with the application window expected to reopen on January 1, 2025.

Italy is now offering a transferable tax credit at 30% or 40%, which can be monetized through banks or used as offsets. Italy’s “shooting day” requirement has been removed, allowing post-production-only projects to qualify.

What’s driving production to Australia

Australia’s film industry has long been a global force, supported by robust government incentives, world-class infrastructure, and a legacy of cinematic excellence. Recent updates to Australia’s incentives, such as increasing the Location Offset to 30% and enhancing the Post, Digital, and Visual Effects (PDV) Offset, underscore the country’s commitment to attracting large-scale international productions.

In addition to the federal incentives, there are regional incentives offered in New South Wales (10%), Victoria (10%), Queensland (15%), and South Australia (10%), with a new 10% rebate recently introduced in Tasmania. These state incentives can be stacked with Australia’s federal incentives for added financial benefit.

These changes include requirements for using Australian post-production providers, new workforce reporting obligations, and training components aimed at addressing skill shortages, such as the training of production accountants through partnerships like Entertainment Partners. Additionally, significant investments in virtual production technology and Screen Australia’s new below-the-line training programs solidify the country’s role as a leader in both traditional and emerging aspects of global film production.

Other international incentives to watch in 2025

As we wrap the year and look to 2025, it’s important to highlight other international jurisdictions attracting productions due to their incentives, infrastructure, crew, and locations. Three countries worth noting include:

• Japan, which offers a cash rebate of up to 50% of qualifying production costs, capped at $6.7 million (JPY1 billion), designed to attract large-scale international productions.
• India has enhanced incentives for filming in the country with the Indian federal government reimbursing up to 40% of qualifying production expenditure, up from the previous 30%. The cap limit for the reimbursement was raised to $3.6 million, with an additional 5% rebate bonus for significant Indian content. India also has similar incentives for documentaries, VFX, and animation, making it a popular destination for film and television production.
• Saudi Arabia offers a 40% incentive for local, regional, and international productions, showcasing its ambition to become a global filmmaking hub.
• Thailand’s successful 15% rebate program is set to increase to 25%.

The U.S. film and TV industry is still a powerhouse—employing nearly three million people, supporting 240,000 businesses, and paying out $242 billion in wages—but the global production landscape is shifting fast.

Countries around the world aren’t just offering better incentives—they’re investing in technology, sustainable filmmaking practices, and training programs to create thriving production hubs. Producers now face more options than ever, making the decision about where to shoot more complex, but also full of exciting possibilities. It’s no longer just about the money—it’s about finding the right mix of financial benefits, creative opportunities, and long-term support. As the race to attract productions intensifies, this is a pivotal moment for the industry, with challenges ahead but also incredible opportunities to reshape how and where stories are told.

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