As expected and like the rest of the industries, international audiovisual has suffered the biggest fall since the implementation of fiscal incentives aimed at attracting filming and post-production of projects from other countries to Spain. According to PROFILM data, direct investment last year reached €36,203,035.95, compared to more than 132 million euros that our country received in 2019. Hiring data also suffered significantly as only 4,413 contracts were signed compared to 13,600 the previous year, which meant a contribution to Social Security of 4,021,831.69 €, compared to more than twelve million euros collected in 2019. Thus, PROFILM partners managed to attract 27.39% of investments compared to the previous year. Only El Ranchito, a company specialized in visual effects, has managed to maintain the work pace given its special characteristics that allow for online work.
“It has been a terrible year for everyone, in which most companies have really struggled. The closure of borders with the US and the difficulties of movement within the EU prevented the mobility of actors and actresses but also of the rest of the technical team essential to carry out any project” said Adrián Guerra, president of PROFILM. Undoubtedly, the most affected community has been the Canary Islands, where the international filming sector was becoming a prototype industry complementary to tourism. “In the Canary Islands, a year later, we are still waiting for the definition of the limit of return on incentives to which we are entitled and which is currently lower than in the rest of Spain. Under these conditions, it will be impossible to recover from last year’s nightmare given the lack of security with which we work”, commented Juan Cano, Vice President of PROFILM.
The increase in fiscal incentives approved by the Government last May contributed to heightening the interest in Spain from major studios and producers worldwide. However, the closure of borders with the UK due to the pandemic, coupled with the increase in procedures for the transfer of professionals from that country caused by Brexit, is making it difficult for PROFILM member companies to recover.
“We trust that the processing of the Royal Decree-Law on cultural aid for COVID-19 will contribute to improving the regulations that govern us to guarantee both investors and Spanish companies the legal security that we so demand. Undoubtedly, this will contribute to making the audiovisual hub that the Government plans to configure a reality” stated Mr. Guerra.
