In a bold move to attract big-budget Hollywood productions, France is overhauling its tax rebate scheme to make it more appealing to international filmmakers. The newly revamped tax incentive, aimed at boosting France’s appeal as a shooting location, now includes actors’ salaries as part of eligible expenses. This strategic enhancement positions France as a formidable rival to other European hubs like London, Prague, and Budapest.
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Improved Tax Incentives for International Productions
France is making significant changes to its tax incentive for international productions, known as TRIP. The adjustments come after strong lobbying efforts by both French and American industry leaders, including Netflix co-CEO Ted Sarandos and Paramount Skydance CEO David Ellison. These modifications mean that expenses like non-European actors’ salaries and accommodation costs will now qualify for a 30% tax rebate, which can increase to 40% for projects investing over €2 million ($2.3 million) in French VFX work. The updated tax credit is capped at €30 million ($35 million) per project.
Positioning France as a Competitive Filming Destination
Pending approval from the European Commission, the revamped tax rebate is expected to roll out shortly. Though some projects like the upcoming season of “The White Lotus” might narrowly miss out, the changes are heralded by Gaëtan Bruel, president of the National Film Board (CNC), as “indispensable.” He emphasized the need for France to reclaim its competitive edge in the face of a “weakened” Hollywood where global production volumes have dipped.
The drop in TRIP-approved productions from 100 in 2022 to 55 in 2024 underscores the urgency of this initiative. Bruel noted how these enhancements could drive significant economic benefits like increased hotel bookings, merchant revenue, and job opportunities. The collaboration between industry leaders and President Emmanuel Macron highlighted the necessity of this reform to strengthen France’s position as a premier destination for large-scale, ambitious productions.
Boosting Economic Impact and Industry Growth
President Macron’s France 2030 plan has already directed substantial funding toward infrastructure, studio expansions, and training programs. However, the realization that these efforts would fall short without a modernized incentive was pivotal. As a source in the industry put it, “France 2030 would have been for nothing without an improved rebate.”
With a significant presence of streaming services like Netflix reshaping the local film and TV landscape, France has witnessed a surge in production spending, doubling from €1.5 billion to €3 billion annually. Bruel pointed to high-profile series like “Emily in Paris” and “The New Look” as evidence of the fruitful collaboration between American expectations and French technical excellence.
The expanded eligibility, particularly including actors’ salaries, is critical in maintaining this momentum amid global industry contractions. By supporting both domestic and international production, France aims to foster its broader creative ecosystem and stimulate economic growth.