Malta Film Incentive: Up to 40% Cash Rebate for Productions

Malta Film Incentive Overview

The Malta Film Incentive offers up to 40% cash rebate on eligible local expenditures for international productions. The base rebate for the Malta Film Incentive is 30%, with potential bonuses for projects contributing cultural or economic value. The Malta Film Incentive applies to feature films, series, documentaries, and animations, and covers expenses such as crew wages, equipment rental, and post-production. Administered by the Malta Film Commission, the Malta Film Incentive is designed to attract high-quality projects and promote Malta’s growing screen industry. Productions that meet criteria can fully benefit from the Malta Film Incentive.

Hoodlum Introduction

Hoodlum Film Fixers is your expert guide for accessing the Malta Film Incentive. We handle the entire application process to ensure your project aligns with the requirements of the Malta Film Incentive. From documentation to budgeting and working with local vendors, our team supports every step in unlocking the Malta Film Incentive. We know what it takes to navigate the compliance side of the Malta Film Incentive, including cultural test scoring and rebate calculations. With Hoodlum managing your engagement with the Malta Film Incentive, your production will be cost-efficient, compliant, and creatively empowered.

Incentives Offered

Malta offers attractive incentives for film productions, including a cash rebate of up to 40% on eligible expenses incurred in the country. Here’s a breakdown of the incentives:

Cash Rebate: 30% of eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete. This can increase to:
- 35%: If the film portrays Malta as Malta or has special Maltese cultural content.
- 40%: If the Malta Film Studios are used or local resources are maximized.
Eligible Expenses Include:
- Personnel costs for Maltese residents
- Facilities and services, such as local studios and post-production services
- Accommodation and transportation costs within Malta
- Production costs, like set construction and equipment rental
Additional Incentives:
- Tax credits of up to 35% of investment on audiovisual infrastructure
- Favorable corporate tax rates, with foreign company directors/investors potentially paying as low as 5% company tax
- Grants for script development, production, and distribution through the Malta Film Fund
Requirements:
- Minimum spend requirement of €100,000 (or €200,000 overall budget)
- Completion of a cultural test to evaluate the production’s cultural and economic contribution to Malta
- Engagement of a local service provider to qualify for incentives
- Hiring of at least five trainees and providing right of first refusal for hero props and costumes to the Malta Film Commission
Application Process: Involves submitting a pre-application, detailed application, and undergoing evaluation and monitoring by the Malta Film Commission ².

Eligibility Criteria

To qualify for the Malta Film Rebate, productions must meet specific eligibility criteria. Here are the key requirements:

Production Types

Feature films
Television series
Documentaries
Animated productions
Other types of audiovisual content

Minimum Spend Requirement

Minimum eligible expenditure of €100,000 in Malta (or a total budget of at least €200,000)

Cultural Test

Productions must pass a cultural test to evaluate their cultural and economic contribution to Malta

Local Engagement

Engagement of a local service provider
Hiring of at least five trainees

Other Requirements

Compliance with Maltese laws and regulations
Provision of right of first refusal for hero props and costumes to the Malta Film Commission
Use of Malta Film Studios or local resources to maximize rebate potential

Ineligible Productions

Productions with explicit content or those that may be considered harmful to Malta’s reputation
Productions that do not meet the minimum spend requirement or cultural test criteria

What is the minimum QPE per project

The minimum Qualified Production Expenditure (QPE) per project varies depending on the type of production. Here are some minimum QPE requirements for different types of productions:

Feature Films:

Foreign productions: $100,000
Local productions: $50,000
High-end productions: $1,000,000

TV Drama Series or Single Drama:

$20,000 per episode for standard productions
$150,000 per episode for high-end productions

TV Documentary Programmes:

$20,000

Music Videos:

Foreign productions: $30,000
Local productions: $15,000

Dubbing Projects:

$30,000

Post-production:

Standard productions: $30,000
High-end productions: $150,000

TV Commercials:

$30,000 for high-end international productions

Production categories accepted:

The Malta Film Rebate Scheme accepts various categories of production for evaluation, including:

Feature Films: Narrative films with a minimum duration of 70 minutes.
Television Series: Scripted or unscripted series, including dramas, comedies, and documentaries.
Documentaries: Non-fiction films that explore real-life themes, events, or issues.
Animated Productions: Animated films, series, or shorts created using various techniques.
Short Films: Films with a duration of less than 70 minutes.
High-End TV Productions: High-end television productions, including dramas, comedies, and documentaries.

Qualifying Production Expenditures (QPE)

Qualifying Production Expenditures (QPE) under the Malta Film Rebate Scheme include various costs incurred during pre-production, production, and post-production. Here are some examples of QPE for pre-production expenditures:

Pre-Production Expenditures

Script development: Costs associated with scriptwriting, editing, and revisions.
Location scouting: Expenses related to finding and securing locations for filming.
Casting: Costs of hiring actors, casting directors, and related services.
Storyboarding: Expenses for creating storyboards, animatics, or other visual planning tools.
Budgeting and scheduling: Costs of creating detailed budgets and shooting schedules.
Permits and licenses: Fees for obtaining necessary permits, licenses, and approvals.
Pre-production labor: Salaries, fees, and benefits for crew members and staff during pre-production.

Production Expenditures

Production expenditures under the Malta Film Rebate Scheme include:

Cast and Crew Salaries and Fees:

Actor fees and salaries
Director fees and salaries
Crew member salaries and wages (e.g., cinematographer, production designer, editors)
Benefits, pension contributions, and other related costs

Professional Fees:

Director’s fees: Fees paid to the director for their services
Producer’s fees: Fees paid to producers for their services
Screenwriter’s fees: Fees paid to screenwriters for script development
Other professional fees: Fees paid to experts, consultants, or specialists (e.g., stunt coordinators, special effects experts)

Labour Costs:

Salaries and wages: Payments to cast and crew members, including bonuses and overtime
Benefits and allowances: Contributions to pension funds, health insurance, and other benefits
Payroll taxes and social security contributions: Payments to government agencies for taxes and social security
Fringe benefits: Additional benefits, such as accommodation, transportation, or meal allowances

Equipment rental fees:

Camera and lighting equipment: Rental fees for cameras, lenses, lighting, and grip equipment
Sound equipment: Rental fees for sound recording equipment, such as microphones and mixers
Specialized equipment: Rental fees for specialized equipment, such as cranes, drones, or Steadicams
Generators and power supply: Rental fees for generators and power supply equipment
Other equipment: Rental fees for other equipment necessary for production, such as camera dollies or jibs

Location fees:

Site fees: Payments to location owners or managers for the use of their property
Permits and licenses: Fees for obtaining necessary permits and licenses to film at a location
Location management: Costs associated with scouting, securing, and managing locations

Wardrobe and costume expenses:

Costume design and creation: Costs of designing, creating, and purchasing costumes
Costume rental: Rental fees for costumes and wardrobe items
Costume maintenance and alteration: Costs of cleaning, altering, and repairing costumes
Wardrobe department salaries: Salaries and fees for wardrobe department staff, including costume designers, supervisors, and assistants

Set design and construction costs:

Set design: Costs of designing and planning sets, including drafting and modeling
Set construction: Costs of building, installing, and dressing sets
Set decoration: Costs of furnishing, decorating, and dressing sets
Set materials and supplies: Costs of materials and supplies used in set construction and decoration
Set construction labor: Salaries and fees for set construction crew members

Special effects and stunts expenses:

Visual effects: Costs of creating CGI, graphics, and other visual effects.
Special effects: Costs of creating pyrotechnics, smoke, fog, and other on-set effects.
Stunt coordination: Fees for stunt coordinators, performers, and related expenses.
Stunt equipment: Costs of renting or purchasing equipment for stunts.
Safety measures: Costs of ensuring safety during stunt performances

Catering ,craft and services costs:

Catering: Costs of food and beverages for cast and crew.
Craft services: Costs of snacks, refreshments, and other amenities.
Accommodation and transportation: Costs of lodging and transportation for cast and crew.
Security services: Costs of hiring security personnel and services
Other services: Costs of services such as cleaning, waste management, and facilities management

Specialized Services:

Animation and visual effects services: Costs of creating animation, CGI, and visual effects
Sound design and mixing services: Costs of sound design, editing, and mixing
Post-production services: Costs of editing, color grading, and finishing
Drone services: Costs of drone operation and aerial footage
Stunt coordination services: Costs of planning and executing stunts
Catering and hospitality services: Costs of providing food and beverages for cast and crew

Accommodation and transportation costs for cast and crew:

Accommodation Costs

Hotel stays
Rental of apartments or villas
Per diem allowances for cast and crew

Transportation Costs

Airfare for cast and crew
Car rentals or transportation services
Fuel costs for production vehicles
Parking and toll fees

Travel:

Airfare: Flights for cast, crew, and equipment
Hotel stays: Accommodation costs for cast and crew
Car rentals: Vehicle rentals for production purposes
Taxis and transportation: Costs of transporting cast, crew, and equipment
Travel agency fees: Fees for booking travel arrangements

Miscellaneous:

Office expenses: Costs of office supplies, rent, and utilities
Communication costs: Costs of phone, internet, and data services
Insurance premiums: Costs of insuring production assets and personnel
Permits and licenses: Fees for obtaining necessary permits and licenses
Other incidental expenses: Costs of unexpected expenses or contingencies

Post-Production Expenditures

Editing: Costs of picture editing, sound editing, and visual effects editing.
Visual effects: Costs of creating CGI, graphics, and other visual effects.
Sound design: Costs of sound recording, mixing, and mastering.
Color grading: Costs of color correction and grading.
Music composition: Costs of composing and licensing music.
Post-production software and equipment: Costs of renting or purchasing software and equipment for post-production.
Post-production facility fees: Costs of renting post-production facilities and studios

Non-Qualifying production Expenditures (NQE)

Expenditures incurred outside Malta: Costs incurred outside of Malta are generally not eligible.
Deferments and accruals: Deferred payments or accruals not actually incurred during the production period.
Financing costs: Interest payments, bank fees, and other financing costs.
Publicity and marketing expenses: Costs related to promoting the production.
Distribution costs: Costs associated with distributing the production.
Expenditures not directly related to production: Costs not directly tied to the production process.

Application process

Step 1: Pre-Production Application

Submit an application to the Malta Film Commission before production begins
Provide project details, including script, budget, and production schedule
Identify key personnel, such as the director, producers, and cast
Estimate the amount of rebate being applied for

Step 2: Eligibility Assessment

The Malta Film Commission assesses the application’s eligibility
Verify that the project meets the scheme’s requirements, such as:
- Minimum budget requirements
- Cultural test or points system
- Production schedule and locations
- Reserve the rebate amount, pending final application and audit

Step 3: Production

Proceed with production, tracking and documenting expenditures incurred in Malta
Ensure that all eligible expenditures are properly documented and recorded
Keep records of receipts, invoices, and contracts

Step 4: Final Application

Submit a final application after production is completed
Provide detailed financial reports, including:
Final budget and expenditure breakdown
Proof of eligible expenditures
Supporting documentation, such as receipts and invoices
Confirm that the production has met all scheme requirements

Step 5: Audit and Verification

The Malta Film Commission reviews and audits the final application
Verify eligible expenditures and ensure compliance with scheme requirements
May request additional documentation or clarification

Step 6: Rebate Payment

If approved, receive the rebate payment based on eligible expenditures
Payment is typically made after the audit and verification process is complete
Rebate amount is calculated based on eligible expenditures and scheme rates

Ready to maximize your film incentives?

Partner with Hoodlum Film Fixers to navigate rebate programs, streamline compliance, and connect with trusted local partners. Let us handle the logistics so you can focus on creating. Contact us today to get started.

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