Tax breaks / incentives
The Croatian Audiovisual Centre (HAVC) was set up in 2008 to help stimulate the local production industry. Under CEO Hrvoje Hribar, it is widely acknowledged to have done a good job of promoting and stimulating the country’s production sector while also encouraging more inward investment. HAVC recently estimated that foreign film production spend in 2014 was almost as much as 2012 and 2013 combined.
The HAVC’s efforts were boosted in 2012 when Croatia’s Parliament greenlit a 20% cash rebate aimed at film and television productions made in the country. TV genres covered by the incentive include documentaries, animation and TV drama. At present, there are no tax incentives for foreign commercials shooting in Croatia.
In terms of the numbers, the minimum local spend per project is €300,000 and the maximum qualifying spend per project is €3m. The HAVC adds the following detail: “The benefit is based on the cost of Croatian cast and crew working in Croatia, as well as goods and services purchased in Croatia up to a maximum value of 80% of the overall budget spent in Croatia.”
The rationale for the incentive was to keep Croatia competitive with its central and eastern European rivals. It was designed in partnership with the HAVC & the Croatian Producers’ Association. In order to be eligible, foreign producers are expected to work with a Croatian co-producer and satisfy a cultural test.