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    Hungary’s Film Tax Rebate in 2024: An Attractive Incentive for Filmmakers

    Key Highlights

    • 30% cash rebate on qualifying expenses
    • Up to 37.5% rebate for the Hungarian budget
    • No cap on total rebate budget

    Hungary has long been a popular destination for filmmakers, and its updated tax rebate scheme for 2024 makes it an even more attractive option for international productions.Hungary offers a 30% tax rebate on all qualifying expenses, making it one of the most competitive film production incentives in Europe.

    Recent notable productions filmed in Hungary include ‘Blade Runner 2049,’ ‘Dune: Part Two,’ and ‘The Witcher,’ showcasing the country’s versatility and appeal to major studios. The Hungarian government has increased the film production tax rebate to 30%, offering substantial savings on costs such as location, crew, and logistical expenses. This incentive has been extended until the end of 2030, making it ideal for filmmakers planning their upcoming projects.

    What is the Film Tax Rebate?

    The Hungarian film tax rebate is a non-recourse, non-repayable cash rebate on qualified film production expenses. This rebate is available to a wide range of productions, including feature films, TV series, documentaries, and animations. Productions can claim a rebate of 30% on their Hungarian spend, effectively reducing the overall costs for foreign and local productions. The scheme applies to both foreign and local spend, provided that the production is carried out through a registered Hungarian film production service company.

    Eligibility and Process

    Productions must work with a licensed Hungarian production company, such as SYSPLEX Film, which handles applications and compliance. Eligible expenses include direct production costs like cast and crew wages, location rentals, production services, and other associated expenditures. Foreign expenditures are also eligible up to 25% of the total qualifying Hungarian expenses, which helps boost the overall potential rebate. Productions can request rebates periodically throughout their projects, and the local production company facilitates a streamlined process by offering clear guidance, a dedicated support team, and expedited permit approvals, often working to ensure minimal bureaucratic delays.

    How the 30% Rebate Boosts Savings

    With the updated tax rebate scheme, Hungary now offers a 30% rebate on qualifying production expenses.

    No cap on the rebate budget means productions of all sizes can benefit without limits, ensuring that Hungary remains open to accommodating even the largest international projects.

    This increase translates into a more competitive offer compared to other European countries. For example, the effective benefit on local Hungarian spend can go up to 37.25% when factoring in the multiplier effect of eligible foreign spend. This is due to additional indirect financial advantages that foreign productions can capitalize on, making Hungary one of the most cost-efficient filming locations in Europe.

    Advantages Beyond the Tax Rebate

    Apart from financial savings, Hungary is known for its diverse shooting locations that range from medieval castles and historic cities to modern urban settings—all easily accessible without extensive travel. The country boasts a highly skilled workforce, including experienced crew members and state-of-the-art production facilities such as Korda Studios, Origo Studios, and Mafilm Studios. This combination of attractive locations, infrastructure, and financial benefits has made Hungary the second most popular filming destination in Europe, trailing only behind London.

    Government Support and Ease of Production

    The Hungarian government continues to play a pivotal role in supporting the film industry by streamlining permitting processes and fostering cooperation among various government agencies. Productions benefit from an efficient workflow that allows them to focus more on creativity and less on administrative hurdles. The Hungarian National Film Fund manages a collection account to facilitate these rebates, ensuring that productions can rely on timely support throughout their projects.

    How to Apply

    It is advisable to contact a licensed local film production company, such as SYSPLEX Film, which can assist in creating a budget, a schedule, and managing all necessary steps and paperwork. Applications are assessed by the Hungarian National Film Office, and the rebate is granted based on the extent of local expenditure and the project’s adherence to cultural eligibility criteria. There is no cap for the total budget for this tax incentive, but last year it exceeded HUF 100 billion (approximately USD 280 million or EUR 260 million), allowing Hungary to accommodate a growing number of international productions. Compared to other European countries, this budget places Hungary among the top contenders for film production support, offering one of the most generous funding capacities, which makes it highly competitive for international filmmakers.

    Conclusion

    Hungary’s film tax rebate of 30% is a significant draw for production companies looking to optimize their budgets while leveraging one of Europe’s best-equipped film ecosystems. With financial incentives, stunning filming locations, and a dedicated support system, Hungary continues to be a premier choice for international filmmakers.

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