Learn more about the Hungarian Film Incentive that aims to attract both domestic and international filmmakers to shoot their projects in Hungary by offering attractive financial incentives and tax benefits.
Here's an overview of how the Hungarian tax rebate system works:
1. Cash Rebate: Filmmakers can receive a cash rebate of up to 30% of their eligible production costs incurred in Hungary. This includes expenses such as production services, equipment rental, accommodation, and local labor costs.
2. Eligibility Criteria: To qualify for the tax rebate, your film or television project needs to meet specific criteria. This includes a minimum runtime requirement of 70 minutes for features, documentaries, animations, or a total runtime of at least 40 minutes per episode for television series. Additionally, the project should have a minimum budget of HUF 100 million and pass a cultural test that demonstrates its significance in Hungarian cultural terms.
3. Application Process: To be considered for the tax rebate, you need to submit an application to the Hungarian National Film Institute (NFI). Your application should provide project details, budget information, and a production plan. The NFI evaluates applications and determines eligibility.
4. Qualified Expenditure: The tax rebate applies to a wide range of production costs incurred in Hungary, including pre-production, production, and post-production expenses. However, it does not cover development, marketing, and distribution expenses.
5. Co-productions: The tax rebate system also encourages international co-productions. If you're collaborating with Hungarian and foreign production companies, you can apply for the rebate based on your share of eligible production costs.
6. Certification Process: Once your project is approved for the tax rebate, it undergoes a certification process. The NFI issues a certificate confirming its eligibility and the expected rebate amount. This certificate can be used to secure additional financing or partnerships.
7. Payment of Rebate: The cash rebate is paid out after the completion of production and the submission of necessary documentation to the NFI. Typically, the rebate is processed within a few months, pending verification of the production costs.
With the Hungarian tax rebate system on filming, Hungary has become a sought-after destination for film and television productions. Take advantage of the financial incentives, diverse locations, MinusFilm’s skilled crew, and modern production facilities available in Hungary to bring your creative vision to life. Explore our website to learn more about how this system can benefit your production.
