Italy confirms once again its role as a highly competitive destination for international film and audiovisual productions. With one of the most attractive incentive systems in Europe, the International Tax Credit provides a solid framework for foreign companies that choose Italy as a filming or post-production hub.

Source: Directorate General for Cinema and Audiovisual (DGCA), Italian Ministry of Culture (MiC)- Dott.ssa Elena Giacone and Dott.ssa Rossella Gaudio.

Current Status

The application window for the International Tax Credit reopened on June 3 and will remain open until August 31. Applications must be submitted through the DGCOL online platform managed by the Directorate General for Cinema and Audiovisual (DGCA) of the Italian Ministry of Culture.

Why Filming in Italy

The International Tax Credit is recognized for executive production and post-production companies in relation to the actual realization of audiovisual works on Italian soil, commissioned by foreign production companies. Tax credits made in Italy allow companies to offset tax liabilities with credits accrued on film production investments.

For tax relief purposes, qualifying expenditure is defined as costs used and consumed on Italian soil. All eligible costs must be incurred by Italian executive producers, since the relevant tax relief is claimed through the company’s corporate tax return.

The Main Features

Tax Credit Rate: 40% on the eligible cost of productions. A 30% rate applies to above-the-line costs related to non-European subjects only.

Cap: a maximum of €20 million per year per company, allocated through an Italian executive producer. There is no maximum limit per individual work. The national production tax credit, when used by the same company, is not included when calculating the €20 million annual cap.

Eligible projects: feature films, short films, TV series, documentaries, animations, and web products.

Eligible activities: all forms of production activities qualify. Shooting in Italy is not mandatory — post-production activities also qualify.

Minimum spent: production companies must spend at least €250,000 in Italy.

Availability: the tax credit is immediately available as a monthly tax deduction, paid in Italy through a local executive producer, and can be used even during filming.

Transferability: the tax credit can be transferred to banks, converting it into a direct contribution.

What’s New

The obligation to deliver a copy of the completed work has been extended to the international tax credit: to obtain final recognition of the credit, a copy of the work must be submitted.

Dedicated current account: beneficiaries must use a bank account dedicated exclusively to managing the financial flows related to the incentive.

Cost verification: the DGCA may request, also for transferability purposes, an independent appraisal of the adequacy of the declared eligible costs.

Recruitment and third-party services: existing rules on staff recruitment and outsourcing of services have been strengthened.

Application Process

The application process is managed through the DGCOL online platform by the Italian Ministry of Culture (DGCA).

Only the Italian Production Service Company (IPSC) is authorized to file the application.

The IPSC must be legally registered in Italy and handle all financial and administrative aspects of the Italian portion of the budget.

Three-Step Submission Process

Preliminary application: at least 90 days before principal photography starts.

Production start notification: within 120 days of the preliminary request.

Final application: within 180 days after completion of the Italian activities.

Important: all applications must be submitted digitally via the DGCOL portal. The IPSC must use a digital signature and a certified Italian email address (PEC) to finalize submission.

Funding opportunities