The Council of Ministers has approved a law to encourage the film industry in Portugal.
The incentive is by way of a tax credit that can be deducted from corporation tax, "of an amount corresponding to 20% of the amount of eligible expenses."
The government wants to transform Portugal into an attractive country for foreign film companies, according to the Ministry of Culture which points out the country is artistic and economically attractive destination for film companies.
"In view of the reduction of foreign productions registered in recent years, this measure intends to be an important step towards reversing this situation and repositioning Portugal in the global film production market," states the Ministry.
It should also be noted that the percentage of the incentive can increase up to 25% in the case of films in the Portuguese language or "works with special cultural relevance or whose production has a very significant impact on national cinematography."
If the shooting is carried out in the interior of the country, the deduction can be further increased by 25%, with more credits allowed if the filming included actors or technicians with disabilities.
