Croatia Introduces 20% Tax Rebate For Film, TV Shoots

COLOGNE, Germany - The tiny Balkan nation of Croatia has joined Europe's cash back club, passing a new law to give producers a 20% tax rebate on production costs for shoots in country. The tax break will apply to feature films, documentaries, animation and TV drama shot  in Croatia and will be capped at $4.2 million (€3 million) per project. A minimum local spend of $422,000 (€300,000) is required to qualify for the scheme and producers can apply for the rebate for up to a maximum of 80% of the overall budget spend in Croatia.

A favorite European holiday destination before the onset of the Yugoslav war, Croatia boasts spotless beaches, miles of pristine coastline and picturesque medieval towns and villages, which it hopes can be turned into attractive backdrops for visiting productions.  Only a few international features have been shot in Croatia in recent years, the largest being Dominic Sena's fantasy drama Season of the Witch starring Nicolas Cage. But the given the low rebate ceiling, the new initiative is more likely to attract smaller independent productions than big budget event movies.