THE PORTUGUESE CASH REBATE INCENTIVE
Portugal created one of the most competitive incentive systems in Europe: a cash rebate, funded by the Tourism Board. It applies to film and TV with the minimum qualified Portuguese production expenses (QPPE) of €500.000,00 (around $600.000,00) for fiction and animation and €250.000,00 (around $300.000,00) for documentaries and post-production.
- Films, TV and VOD productions - national and foreign (line/services) films, official and international physical co-productions;
- Incentive: 25% or 30% of QPPE - rebate rate is determined by a “Cultural Test” that focuses on the project characteristics.
- First come first served basis.
- Maximum recap per project of €4M (circa $5M).
The €4M cash rebate per production, and yearly fiscal estimates, are just budgetary place markers, not inscribed allocations. The incentive management authority has the funds and legal autonomy to expand them both as to accommodate any particular projects it approves. Projects submitted for appreciation will be notified of a final binding decision of approval within 30 days, upon which cash rebate instalments will be made available.
- Upfront payments in instalments.
- Above-the-line expenses are considered QPPE until the limit of 35% of total QPPE.
- Appreciation timing: 20 working days.