The Malta Film Industry
The Malta Film Industry
The first film shot in Malta dates back to 1925 and since then this industry has grown into an important economic niche. Nowadays, local or foreign productions are not limited to the silver screen but also include feature films, television series, animation productions, documentaries, advertising campaigns, transmedia and crossmedia productions. Statistics for 2014 indicate that direct expenditure amounted to approximately €30 million.
What brings such investment to Malta? Audio visual producers have chosen Malta as their preferred destination for an array of different reasons. Our diverse Mediterranean settings, pro-business attitude, craftsmanship for film set construction, long hours of natural sunlight, well connected flights, water based filming and competitive fiscal incentives are some of the potential advantageous at play.
Fiscal Incentives
Cash Rebate*
- Productions which satisfy a cultural test can benefit from a rebate up to 25% of eligible expenditure with an additional 2% if the production features Malta culturally.
Tax Credits*
- Investment aid for audio-visual facilities is available under the Malta Enterprise Act. The aid is offered in the form of tax credits. Tax credits are computed as a percentage of either the value of capital investment or the value of wages for 24 months, covering new jobs created as a result of an investment project. Furthermore, facilities for filming and audio-visual productions qualify for investment tax credits.
Co-Production Fund*
- The Government of Malta has recently allocated a €1 million budget for film co-productions. The main purpose of the fund is to encourage collaboration between Maltese and foreign companies to produce films and TV series for international distribution.
Value Added Tax*
Malta applies a blanket VAT rate of 18 percent on all goods and services however a number of exceptions apply. Foreign undertakings shooting in Malta can apply for VAT rebates in the following cases:
- Input VAT incurred on property rental or hotel accommodation during stay;
- Input VAT incurred on fuel by vehicles in connection with the film production;
- Input VAT on taxis and vehicle rentals in connection with the film production; and
- Input VAT on costs of material used for the purpose of the film production which would not be otherwise recoverable
Malta Tourism Authority Incentives*
This government agency offers certain fiscal incentives to film producers that choose to depict Malta as Malta.
* These incentives are subject to specific terms and conditions issued by different competent authorities in Malta.
Contacts
For further information please contact:
Marica Bonello
Tel: +356 21423059
