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Hungary ups film tax rebate to attract more foreign productions

Hungary is set to increase its tax rebate by 5% later this year as the country aims to increase the amount of foreign film productions making use of the nation as a film location.

Under the new rules, international producers shooting in Hungary will be able to claim up to 30% of local spend.

In June the European Commission approved the country’s new rebate for productions shooting in the country to 25% - a 5% increase to its previous arrangement.

However,  under an additional rule that allows filmmakers  to also shoot across Hungary’s borders without losing any of their possible tax benefits, producers can also apply for the rebate to be applied to a maximum of 20% of their overall spend, which would then amount to a 30% rebate overall.

With the new scheme Hungary is on a par with countries such as the Netherlands, whose new cash incentive of 30% came into force in May, and the UK, which has a popular 25% tax incentive in place.

One production that is set to come to Hungary (Budapest) later this year is the feature film The Zookeeper's Wife, starring Jessica Chastain. Niki Caro’s film is an adaptation of the World War II novel by Diane Ackerman.

Other productions to have filmed in Hungary over the past few years include World War Z, 47 Ronin, The Rite and The Boy In The Striped Pyjamas, while TV productions to have spent time there include The Borgias, Pillars Of The Earth and Going Postal. 

To find out more about filming in Hungary, please check out our production guide.