Transformations in the Audiovisual Sector: Insights from the Producing in Canarias Panel

The audiovisual sector is undergoing significant changes, as highlighted during the recent panel discussion titled “Producing in Canarias,” which took place on Tuesday as part of the CIIF Market 2025 and Tenerife Networking Day, organized in partnership with the Tenerife Film Commission.

Impact of New Legislation on the Industry

One of the primary focuses of the panel was the implications of the new Film Law, which is currently pending state approval. Experts expressed concerns about the slow progress of this legislation, attributing it to challenges in defining what qualifies as an independent production. Despite these hurdles, there is optimism that the new law will replace the outdated 2007 legislation, thereby aligning with the current dynamics of the industry.

Lawyer Carmen Aguado, who is a partner at Écija Abogados and serves as vice president of the Audiovisual Cluster of Canarias, pointed out that existing Spanish and European laws do not yet acknowledge works created solely by artificial intelligence. However, she noted that recent regulations mandating the disclosure of AI usage in productions indicate a growing recognition of the interplay between human creativity and technology.

Financial Developments in Film Production

Financial considerations were another crucial topic during the discussion. Fernando Rodríguez, the International Business Director at Bankinter in Canarias, remarked on the evolution of the banking sector’s approach to film financing. He noted that banks have transitioned from a lack of interest in the film industry to developing tailored financial products for filmmakers. The tax rebate advance has emerged as a popular financing mechanism, allowing producers to receive fiscal returns reimbursed by the Treasury.

Rodríguez also highlighted the importance of instruments such as CESCE guarantees and Mutual Guarantee Societies, which help mitigate risks and facilitate access to credit for producers.

Canarias’ Competitive Tax Incentives

The panel also addressed the advantages offered by the Economic and Tax Regime (REF) in Canarias. José Ramón Barrera, the REF Commissioner, reminded participants that Canarias was a pioneer in applying tax incentives to the audiovisual sector, citing the filming of Jason Bourne in Santa Cruz de Tenerife in 2015 as a landmark case. The initial tax incentive of 4.5 million euros has now increased to 36 million euros.

Barrera explained that the deductions available in the Archipelago—50% on the first million euros and 45% on the remainder, capped at 36 million per film—are significantly more favorable than the state regime by twenty points. This positions Canarias as one of the most attractive filming locations in Europe. Additionally, the zero IGIC rate for audiovisual productions has removed financial burdens associated with VAT, enhancing the sector’s competitiveness.

Legal Security and Industry Growth

The panelists unanimously agreed that legal security is a cornerstone of the Canarian model. Aguado stressed the necessity of maintaining organized and transparent accounting practices, assuring that tax inspections should not instill fear if compliance requirements are met.

The discussion concluded with a unified message: the REF continues to be a vital instrument for attracting film projects and bolstering the audiovisual landscape in Canarias. The banking sector and private investors have adapted to the industry’s specific needs, contributing to its professional growth. Participants noted that Canarias has now become an international benchmark for reliable film production.

Overview of CIIF Market 2025

The Canary Islands International Film Market is currently in its 21st edition, taking place in Santa Cruz de Tenerife until October 31. This event gathers producers, distributors, financial agents, and institutions to foster co-production and audiovisual investment. It is supported by various entities, including the Cabildo of Tenerife, the Government of Canarias, Santa Cruz City Council, Tenerife Tourism, and the Audiovisual Cluster of Canarias.

Key points

• The “Producing in Canarias” panel discussed the evolving audiovisual industry during the CIIF Market 2025.
• The new Film Law is pending state approval and aims to replace the outdated 2007 legislation.
• Experts highlighted the challenges in defining independent productions under the new law.
• Financial tools like tax rebate advances and guarantees are becoming essential for film financing.
• Canarias offers competitive tax incentives, making it an attractive filming location in Europe.
• Legal security is emphasized as a fundamental aspect of the Canarian audiovisual model.
• The CIIF Market 2025 is promoting co-production and investment in the audiovisual sector.