Iceland Film Incentive: Up to 35% Cash Back on Productions

Iceland Film Incentive Overview

Hoodlum Film Fixers is your trusted partner in navigating Iceland’s film incentive landscape.
With deep expertise in the Icelandic Film Centre’s requirements and rebate processes, Hoodlum ensures your production meets all the criteria to qualify for available cash rebates, tax incentives, and location support.

Our team assists with compiling essential documentation — from scripts and detailed budgets to crew lists, location permits, and insurance certificates. We also connect you with trusted local coordinators, vendors, and production partners, streamlining the application process and maximizing your rebate potential.

With Hoodlum’s on-ground expertise, you can focus on your creative vision while we manage compliance with Iceland’s incentive regulations, ensuring your production runs smoothly, efficiently, and cost-effectively.

Read more about it here: Incentives to film in Iceland

Eligible Criteria for Iceland Film Incentive

Minimum Production Costs:

The production costs incurred in Iceland must be at least ISK 350 million.

Minimum Working Days:

The project must have a minimum of 30 working days in Iceland, which can include actual film production (shooting) days or defined post-production working days. At least 10 of these days must be shooting days in Iceland.

Minimum Staff:

The production must employ at least 50 staff members, with a total of 50 working days. Both salary and payments to employees and contractors must be taxed in Iceland.

Additionally, productions must apply for reimbursement before starting production in Iceland, and applications can be submitted at any time of the year.

The application should include:

Declaration: A declaration explaining how the motion picture or television program conforms to the aims of Act No. 43/1999.
Supporting Documents: The application should be accompanied by supporting documents, such as a detailed budget and production schedule.

The reimbursement rate can be up to 35% of production costs if all conditions are met. If more than 80% of the total production cost is incurred in Iceland, the reimbursement is calculated on the basis of the total production cost incurred within the European Economic Area, Greenland, and the Faroe Islands.

What is the minimum QPE per project for Iceland Film Incentive

Feature Films: The rebate applies to feature films with a minimum production cost of ISK 350 million (approximately $2.5 million USD) incurred in Iceland.
TV Shows: Television shows, including drama series and documentaries, are also eligible for the rebate.
Documentaries: Documentary films can qualify for the rebate, with a minimum production cost of ISK 350 million (approximately $2.5 million USD) incurred in Iceland.
Animation Series: Animation series, including those with a minimum of 10 episodes lasting at least 40 minutes in total, can qualify for the rebate.
Reality TV: Reality TV shows are also eligible for the rebate, with a minimum production cost of ISK 100 million (approximately $750,000 USD) incurred in Iceland.

What categories of production will be accepted for evaluation under the Film Rebate Scheme:

Feature Films:

Fiction films with a minimum running time of 60 minutes.

TV Dramas:

Fiction television programs with a minimum running time of 30 minutes per episode, including:

Drama series
Mini-series
TV movies

Documentaries: Non-fiction films and television programs with a minimum running time of 30 minutes, including:

Documentary series
Documentary films

Animation: Animated films and television programs, including:

Animated feature films
Animated television series
Animated documentaries

Reality TV: Non-scripted television programs, including:

Reality TV shows
Game shows
Competition shows

Commercials: Television commercials and online advertisements.

Post-Production Only: Productions that only undertake post-production work in Iceland, such as editing, visual effects, and sound design.

All applications are evaluated on a case-by-case basis, and the Icelandic Film Centre reserves the right to request additional information or documentation as needed.

What constitutes Qualifying Production Expenditures offered by the Iceland Economic Development Board:

Pre-Production:

Scouting and Location Fees: Costs related to scouting and securing locations in Iceland.
Casting: Costs related to casting Icelandic actors or actors working in Iceland.

Production:

Talent Fees: Fees paid to Icelandic actors or actors working in Iceland.
Crew Costs: Salaries and benefits paid to Icelandic crew members or crew members working in Iceland.
Equipment Rental: Costs related to renting equipment in Iceland.
Location Fees: Fees paid for using Icelandic locations.
Accommodation and Travel: Costs related to accommodating and transporting cast and crew in Iceland.

Post-Production:

Editing: Costs related to editing the production in Iceland.
Visual Effects: Costs related to creating visual effects for the production in Iceland.
Sound Design and Mixing: Costs related to sound design and mixing for the production in Iceland.
Music Composition and Recording: Costs related to composing and recording music for the production in Iceland.

Other:

Insurance: Costs related to insuring the production in Iceland.
Bonding: Costs related to bonding the production in Iceland.
Permits and Licenses: Costs related to obtaining permits and licenses for filming in Iceland.

Non-Qualifying Expenditures for Iceland Film Incentive:

Development Costs: Script development, including writer fees and research costs.
Marketing and Distribution Costs: Advertising, publicity, festival fees, and distribution expenses.
Financing Costs: Interest payments and financing fees.
Insurance Premiums: Coverage premiums for production and liability insurance.
Bonding Costs: Expenses for completion bonds and payment bonds.
Taxes and Duties: VAT, customs duties, and other taxes on goods and services.
Equipment Purchases: Buying equipment like cameras, lighting, and grip gear.
Set Construction and Design Outside Iceland: Costs for building and designing sets outside Iceland.
Special Effects Outside Iceland: Expenses for VFX or special effects work done outside Iceland.
Travel & Accommodation for Non-Icelandic Cast & Crew: Costs of bringing in and housing non-Icelandic personnel.
Catering & Craft Services Outside Iceland: Food and beverage costs incurred outside Iceland.
Location Fees to Non-Icelandic Owners: Payments for locations outside Iceland.
Permitting & Licensing Fees Outside Iceland: Fees for permits and licenses acquired outside Iceland.
Security & Safety Costs Outside Iceland: Services for security and safety provided outside Iceland.

Note: The Icelandic Film Centre may request additional documentation or information to verify the eligibility of expenditures.

Application Process:

Step 1: Initial Contact

Contact the Icelandic Film Centre: Reach out to discuss your project and confirm eligibility for the rebate scheme.
Provide Project Details: Submit key information, including your script, budget, and production schedule.

Step 2: Application Submission

Submit the Application Form: Complete the official form available on the Icelandic Film Centre’s website.

Attach Required Documents:

Script
Budget
Production schedule
Cast and crew lists
Location list
Insurance certificates

Pay the Application Fee: ISK 50,000 (approximately EUR 350).

Step 3: Application Review

Application Review: The Icelandic Film Centre evaluates your submission to ensure it meets eligibility criteria.
Request for Additional Information: You may be asked to provide clarifications or extra documentation.

Step 4: Approval and Contract

Approval: If accepted, you’ll receive an official letter of approval.
Contract Signing: Sign an agreement outlining the terms and conditions of the rebate scheme.

Step 5: Production and Audit

Begin Production: Start filming, ensuring compliance with the contract’s requirements.
Audit: The Film Centre may conduct audits to verify adherence to the rebate conditions.

Step 6: Rebate Payment

Submit Rebate Claim: File your claim with all supporting documents.
Receive Payment: Once approved, you’ll receive your rebate—typically 20-35% of qualifying production expenditure.

Incentives Offered

Rebate Percentages

20% Rebate: On qualifying production expenditures incurred in Iceland.
25% Rebate: For qualifying expenses in Iceland’s rural areas.
35% Rebate: For productions filmed in rural areas and meeting specific cultural and creative criteria.

Additional Incentives

VAT Exemption: No value-added tax (VAT) on qualifying production costs.
No Withholding Tax: No withholding tax on payments to foreign cast and crew.
Streamlined Permitting: Simplified permitting process for filming in national parks and protected areas.

Cultural and Creative Criteria for 35% Rebate

Promotion of Icelandic Culture: Productions highlighting Icelandic culture, history, or language.
Collaboration with Icelandic Talent: Involvement of Icelandic writers, directors, or producers.
Filming in Rural Areas: Projects that contribute to regional development by shooting outside urban centres.

Eligible Projects

Feature Films: Fiction films with a runtime of at least 60 minutes.
Television Dramas: Fiction TV series with episodes running 30 minutes or longer.
Documentary Films: Non-fiction films with a minimum runtime of 30 minutes.
Documentary TV Series: Non-fiction TV programs with episodes of at least 30 minutes.
Reality TV Shows: Unscripted shows featuring real people and situations.
Animated Films & TV Series: Includes 2D, 3D, and stop-motion animated productions.
Post-Production & VFX Projects: Projects focused on editing, sound design, CGI, and visual effects completed in Iceland.

Eligible Reality TV Formats

Competition Shows: Game shows, talent contests, and challenge-based series.
Documentary-Style Reality Shows: Programs featuring real-life stories and situations, such as makeover or observational shows.
Factual Entertainment: Shows that deliver educational or informative content, including cooking and travel series.
Lifestyle Shows: Programs cantered on home renovation, fashion, wellness, or related themes.

Eligibility Criteria

Minimum Budget for Iceland Film Incentive: ISK 100 million (approx. EUR 700,000).
Minimum Shooting Days: At least 5 production days in Iceland.
Icelandic Content: Must prominently feature Icelandic locations, characters, or storylines.
Cultural & Creative Requirements for Iceland Film Incentive: Must meet criteria such as promoting Icelandic culture or involving Icelandic creative talent.

Qualifying Production Expenditures (QPE) for Iceland Film Incentive

Talent Fees: Fees paid to Icelandic actors or actors working in Iceland.
Crew Costs: Salaries and benefits paid to Icelandic crew members or crew members working in Iceland.
Equipment Rental: Rental costs for cameras, lighting, grip, and other production equipment sourced in Iceland.
Location Fees: Fees for using Icelandic locations, including private properties, public spaces, and national parks.
Set Construction & Design: Costs for building and designing sets in Iceland.
Special Effects: Expenses for practical effects such as pyrotechnics, explosives, and mechanical effects performed in Iceland.
Wardrobe & Costumes: Costs for creating or renting wardrobe and costumes within Iceland.
Makeup & Hair: Makeup and hairstyling services provided for cast members in Iceland.
Catering & Craft Services: Provision of food and beverages for cast and crew in Iceland.
Accommodation & Travel: Expenses for lodging and local transportation for cast and crew in Iceland.
Location Management: Costs related to managing locations, including location fees and obtaining permits in Iceland.
Permitting & Licensing: Fees for securing permits and licenses required for filming in Iceland.
Security & Safety: Expenses for security and safety services provided during production in Iceland.
Equipment Transportation: Costs for transporting production equipment to and from filming locations within Iceland.

Additional Qualifying Expenditures for Iceland Film Incentive

Visual Effects (VFX): CGI, animation, compositing, and other VFX work executed in Iceland.
Sound Design & Mixing: Foley, ADR, sound editing, and mixing services completed in Iceland.
Music Composition & Recording: Fees for composing and recording original music for the production in Iceland.

In conclusion, the Iceland film incentive offers a compelling opportunity for international producers seeking both breathtaking landscapes and financial benefits. With a rebate of up to 35% on eligible production costs, the Iceland film incentive is one of the most attractive in Europe. Productions ranging from feature films to television series have successfully utilized the Iceland film incentive to stretch their budgets while capturing Iceland’s dramatic scenery.

The straightforward application process and supportive local infrastructure further enhance the appeal of the Iceland film incentive. Whether you’re planning a large-scale blockbuster or an independent project, the Iceland film incentive ensures your production receives both fiscal value and visual impact. Take advantage of the Iceland film incentive today and elevate your next project with the magic of Iceland.

Iceland

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