As the first of its kind in the region, the Hungarian film support scheme introduced in 2004 has seen an increasing number of large international productions shot in Hungary and also provided increased resources for the making of Hungarian films. According to the National Film Office, the direct production spending increased by 35% in 2013 compared to 2012.
After ratification by the Hungarian Parliament the changes are planned to come into force in October 2014 when the incentive scheme will be raised to 25% compared to the current 20% rebate on the Hungarian production costs.
Recent years have seen a dramatic increase in interest expressed in filming in Hungary due not only to the film support scheme, but also to the wealth of local professional expertise, unified process and flat fees related to the use of public places in Budapest and in cities of the country, and a rich selection of locations and soundstages. Raising the tax incentive to 25% will further ensure Hungary’s position as the most attractive location in the region.
Following the example set by other states in the European Union, once in force, this new legislation will mean that Hungarian filmmakers will be able to access 100% state funding, which will include the 25% tax incentives.
Hungary raises its film incentive to 25% after recent EU approval
The European Commission has given green light to raise the film incentive of Hungary to 25% in its decision on 25 June. The increase was initiated by the Hungarian National Film Fund along with other amendments aiming at harmonising the rules of film funding to the last Cinema Communication of the EU.