The extraordinary measures seek to “guarantee the survival of cultural structures”, and includes tax incentives for national and foreign audiovisual production, and permission to release films directly on platforms.
This Tuesday, May 5, the Spanish Council of Ministers approved a royal decree that contemplates specific aid for the cultural sector, which is greatly affected by the Covid-19 crisis.
The economic measures package has a value of 76.4 million euros, which are divided into direct subsidies, credit guarantees, improvements in tax subsidies by activity and patronage, as well as improvement of the system for intermittent workers (45% of the total) to receive an unemployment benefit during periods of inactivity.
The text acknowledges that the measures taken so far “have not been as effective as could have been expected, for not guaranteeing access to the necessary financing and liquidity.” Thus, the first measure will be the immediate injection of capital.
Through the Reciprocal Guarantee Society CREA SGR, there will be a 20 million euro grant for SMEs in the sector: 16.25 million for loans and 3.75 million for the cost of opening them.
In total, CREA SGR will enable up to 780 million euros in credits, destined to finance six lines (each one will receive a minimum of 40 million): Audiovisual, Performing Arts, Music Industry, Book Industry, Fine Arts and other companies in the sector.
TAX INCENTIVES FOR AUDIOVISUAL PRODUCTION
In the audiovisual field, the law incorporates several measures. In order for the producers that have received aid to have liquidity, up to 50% of the aid will be advanced before filming of the projects begins. Furthermore, they will be allowed to include expenses directly linked to the impact of the crisis.
In addition, the deadlines for compliance with obligations are extended to films benefiting from grants approved before the pandemic.
On the other hand, with the aim of “attracting more international productions and filming, promoting co-productions and increasing the activity of the audiovisual industry in Spain”, tax incentives for foreign and national audiovisual production (films, series, animation or documentaries) are increased.
30% may be deducted from the first million euros, and 25% from the remaining amount.
Filming can be resumed in Spain in Phase I of the de-escalation, next Monday, May 11.
PREMIERES ON PLATFORMS
The document includes direct aid to the cinematographic exhibition, for a total value of 13.2 million euros. The reopening of movie theaters in Spain is scheduled for Phase II, not before May 25.
The amount of the aid will depend on the number of screens that the room has, and will range from 8,000 euros for rooms with one screen, to 32,000 euros for rooms with more than eight screens.
Another significant measure is the “transitional adaptation” of the concept of “commercial premiere” of films, as long as the theaters remain closed. Thus, until August 31, releases on streaming platforms or TV channels are considered premieres, although the titles were required to go through theaters because they received aid.