Latvia

Latvia Film Incentive Overview

The Latvia Film Incentive offers a rebate of up to 25% on qualified production expenditures, with an additional 5% for culturally significant projects. The Latvia Film Incentive supports feature films, TV series, animation, and documentaries. Administered by the National Film Centre of Latvia, the Latvia Film Incentive requires international productions to collaborate with a local Latvian partner. Qualified costs under the Latvia Film Incentive include labor, equipment rentals, post-production, and location fees. With a straightforward application process, the Latvia Film Incentive is a valuable financial tool for cost-effective filming in the Baltics.

Hoodlum Introduction

Hoodlum Film Fixers offers full support to help you access the Latvia Film Incentive. We assist with finding the right local partners, preparing documentation, and guiding your project through all Latvia Film Incentive requirements. Our team manages your production’s compliance to ensure you receive the full value of the Latvia Film Incentive. From budgeting to final rebate claims, Hoodlum’s services make the Latvia Film Incentive process easy and efficient. Choose Hoodlum to optimize your access to the Latvia Film Incentive and film seamlessly in Latvia.

Incentives Offered

Latvia Co-financing Programme:

Offers a cash rebate of 20-30% on eligible production costs for international productions, including feature films, documentaries, and animation films. The program requires an agreement with a local production company and has a minimum budget requirement of €711,436 for feature and animation films, and €142,287 for documentaries.

Riga Film Fund Co-financing Programme:

Provides a cash rebate of 20-25% on eligible production costs, with 25% applicable if the film’s story is set in Riga or features Riga significantly. The program has an annual budget of €800,000 and requires a minimum budget of €700,000 for fiction films, with no specified minimum for documentaries.

Eligibility Criteria

• The film must be fully or partially shot in Latvia.
• The project must use services of individuals or legal entities established in Latvia.
• At least 50% of the total filming costs must be available.
• Foreign funding must be at least equal to the eligible costs of the film project in Latvia.

What is the minimum QPE per project

The minimum Qualifying Production Expenditure (QPE) per project in Latvia varies depending on the type of production and the specific rebate program.

Latvia Co-financing Programme:

• Feature Films and Animation: €711,436
• Documentaries: €142,287

Riga Film Fund Co-financing Programme:

• Fiction Films: €700,000
• Documentaries: No minimum budget specified

Production categories accepted:

The Latvia Film Rebate Scheme accepts various production categories for evaluation. These include:

Feature Films:

• Fiction features with a budget of at least €700,000 under the Riga Film Fund Co-financing Programme
• Feature films with a budget of at least €711,436 under the Latvia Co-financing Programme

Documentaries:

• Feature documentaries with a budget of at least €142,287 under the Latvia Co-financing Programme
• Documentaries with no specified minimum budget under the Riga Film Fund Co-financing Programme

Animation Films:

Animation films with a budget of at least €711,436 under the Latvia Co-financing Programme

TV Films:

TV films are eligible under both the Latvia Co-financing Programme and the Riga Film Fund Co-financing Programme

Qualifying Production Expenditures (QPE)

Pre-Production Expenditures

The Latvia Economic Development Board considers the following pre-production expenditures as Qualifying Production Expenditures (QPE):

• Script development costs: Costs associated with scriptwriting, research, and development.
• Location scouting costs: Costs related to finding and securing locations for filming.
• Casting costs: Costs associated with casting actors and extras.
• Storyboarding and pre-visualization costs: Costs related to creating storyboards and pre-visualizations.
• Pre-production labor costs: Costs associated with the labor of local crew members during pre-production, such as producers, production managers, and location managers.
• Other pre-production costs: Costs related to pre-production activities, such as research, permits, and licenses.

Production Expenditures

Cast and Crew Salaries and Fees:

Professional Fees:

The Latvia Economic Development Board considers the following production expenditures as Qualifying Production Expenditures (QPE):

• Cast and crew salaries and fees: Salaries, fees, and other compensation paid to cast and crew members who are residents or citizens of Latvia, or who are employed by a Latvian company.

Professional Fees: Fees paid to local professionals, such as:

• Directors
• Producers
• Screenwriters
• Cinematographers
• Editors
• Production designers
• Other creative and technical professionals

Labour Costs:

The Latvia Economic Development Board considers the following labor costs as Qualifying Production Expenditures (QPE):

• Salaries and wages: Payments to employees, including cast and crew, who are working on the production in Latvia.
• Social security contributions: Employer contributions to social security, health insurance, and other mandatory payments.
• Other labor-related costs: Other costs directly related to labor, such as training, accommodation, and transportation costs for local crew members.

Equipment rental fees:

The Latvia Economic Development Board considers equipment rental fees as Qualifying Production Expenditures (QPE) if:

• The equipment is rented from a Latvian company: The rental company must be registered and operating in Latvia.
• The equipment is used in Latvia: The equipment must be used for production activities within Latvia.

Examples of equipment rental fees that may qualify include:

• Camera and lighting equipment
• Sound equipment
• Grip equipment
• Generators and other support equipment

Location fees:

The Latvia Economic Development Board considers location fees as Qualifying Production Expenditures (QPE) if:

• The location is in Latvia: Fees paid for using locations within Latvia, such as filming permits, location rental fees, and other related costs.
• The fees are directly related to the production: Costs must be incurred for the purpose of filming or producing the project in Latvia.

Examples of location fees that may qualify include:

• Public location fees: Fees paid for filming in public spaces, such as parks, streets, or public buildings.
• Private location fees: Fees paid for filming on private property, such as homes, businesses, or estates.

Wardrobe and costume expenses:

The Latvia Economic Development Board considers wardrobe and costume expenses as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for wardrobe and costumes used in the production.
• The costs are incurred in Latvia: Purchases or rentals from Latvian suppliers, or services provided by Latvian individuals or companies.

Examples of qualifying wardrobe and costume expenses include:

• Costume design and creation: Fees paid to local costume designers, seamstresses, or other professionals.
• Costume rental: Rental fees for costumes from local suppliers.
• Costume purchases: Purchases of costumes or wardrobe items from local retailers.

Set design and construction costs:

The Latvia Economic Development Board considers set design and construction costs as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for designing and building sets used in the production.
• The costs are incurred in Latvia: Services provided by Latvian individuals or companies, or materials purchased from Latvian suppliers.

Examples of qualifying set design and construction costs include:

• Set designer fees: Fees paid to local set designers.
• Construction labor costs: Costs of local labor for building and installing sets.
• Materials and supplies: Costs of materials and supplies purchased from local suppliers for set construction.

Special effects and stunts expenses:

The Latvia Economic Development Board considers special effects and stunts expenses as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for creating special effects or performing stunts used in the production.
• The costs are incurred in Latvia: Services provided by Latvian individuals or companies.

Examples of qualifying special effects and stunts expenses include:

• Special effects design and execution: Fees paid to local special effects artists or companies.
• Stunt coordination and performance: Fees paid to local stunt coordinators, performers, or companies.
• Equipment and materials: Costs of equipment, materials, or supplies used for special effects or stunts.

Catering ,craft and services costs:

The Latvia Economic Development Board considers catering, craft, and services costs as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for catering, craft services, and other support services used by the production team.
• The costs are incurred in Latvia: Services provided by Latvian individuals or companies.

Examples of qualifying costs include:

• Catering services: Food and beverage services for cast and crew.
• Craft services: Provision of snacks, drinks, and other refreshments.
• Other support services: Costs of services like transportation, accommodation, or security.

Specialized Services:

The Latvia Economic Development Board considers specialized services as Qualifying Production Expenditures (QPE) if:

• The services are directly related to the production: Expenses for specialized services used in the production.
• The services are provided by Latvian individuals or companies: Services must be provided by local professionals or companies.

Examples of qualifying specialized services include:

• Post-production services: Editing, visual effects, sound design, and color grading.
• Animation and CGI services: Creation of animated sequences or computer-generated imagery.
• Sound recording and mixing: Services related to sound recording, mixing, and design.

Accommodation and transportation costs for cast and crew:

The Latvia Economic Development Board considers accommodation and transportation costs for cast and crew as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for accommodation and transportation of cast and crew members who are working on the production in Latvia.
• The costs are incurred in Latvia: Accommodation and transportation services provided by Latvian individuals or companies.

Examples of qualifying costs include:

• Hotel accommodations: Costs of hotel rooms for cast and crew.
• Transportation services: Costs of transportation, such as car rentals, driver services, or shuttle services.

Travel:

The Latvia Economic Development Board considers travel costs as Qualifying Production Expenditures (QPE) if:

• The travel is directly related to the production: Expenses for travel to, from, or within Latvia for cast, crew, or equipment.
• The travel costs are incurred in Latvia or for travel to Latvia: Costs of flights, transportation, or other travel-related expenses.

Examples of qualifying travel costs include:

• Flights to/from Latvia: Travel costs for cast, crew, or equipment.
• Local transportation: Costs of transportation within Latvia.

Miscellaneous:

The Latvia Economic Development Board considers miscellaneous costs as Qualifying Production Expenditures (QPE) if:

• The costs are directly related to the production: Expenses for various production-related services or supplies.
• The costs are incurred in Latvia: Services or supplies provided by Latvian individuals or companies.

Examples of qualifying miscellaneous costs include:

• Office supplies: Costs of office materials and supplies.
• Communication services: Costs of phone, internet, or other communication services.
• Location permits: Fees for permits or licenses.

Post-Production Expenditures

The Latvia Economic Development Board considers post-production expenditures as Qualifying Production Expenditures (QPE) if:

• The services are provided by Latvian individuals or companies: Post-production services must be provided by local professionals or companies.
• The costs are directly related to the production: Expenses for editing, visual effects, sound design, color grading, and other post-production services.

Examples of qualifying post-production expenditures include:

• Editing services: Costs of picture editing, sound editing, and music editing.
• Visual effects: Costs of creating CGI, graphics, and other visual effects.
• Sound design and mixing: Costs of sound recording, mixing, and design.
• Color grading: Costs of color correction and grading services.

Non-Qualifying production Expenditures (NQE)

The Latvia Economic Development Board considers the following as non-qualifying expenditures:

• Expenses not directly related to the production: Costs that are not essential or directly linked to the production.
• Expenses incurred outside Latvia: Costs of services or goods provided by non-Latvian individuals or companies.
• Marketing and distribution costs: Expenses related to promoting or distributing the production.
• Development costs: Costs associated with developing the project before production begins.
• Costs not properly documented: Expenses without adequate receipts, invoices, or records.

Application process

1. Pre-Production Application: Submit an application before production begins, including:
   • Project description
   • Production schedule
   • Budget breakdown
   • Details of key personnel
2. Eligibility Assessment: The Latvia Economic Development Board assesses the application to determine eligibility.
3. Contract Signing: If approved, sign a contract outlining terms and conditions.
4. Production and Expenditure Tracking: Track and document expenditures during production.
5. Post-Production and Delivery: Complete post-production and deliver the final product.
6. Rebate Application: Submit a rebate application with required documentation.
7. Audit and Approval: The Latvia Economic Development Board reviews and audits the application.
8. Rebate Payment: Receive the rebate payment if approved.

Required Documentation

• Detailed budget
• Production schedule
• Contracts with local suppliers and service providers
• Receipts and invoices
• Proof of payment
• Timeline
• Application submission: Before production begins
• Rebate application: After production completion
• Audit and approval: Several weeks or months after rebate application submission
• Rebate payment: After approval

Tips

• Ensure eligibility: Verify that your project meets the eligibility criteria.
• Keep accurate records: Maintain detailed records of expenditures and production activities.
• Submit a complete application: Ensure all required documentation is included.

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.