Malta’s film incentive programme offers an unparallelled combination of financial benefits and logistical support, making it a top choice for producers seeking both cost efficiency and cinematic appeal.
With cash rebates of up to 40 per cent on eligible expenses, including costs incurred outside Maltese jurisdiction but directly tied to local shoots, Malta stands out as a unique player in the global film industry.
Productions receive a minimum 30 per cent rebate on eligible expenses, which can increase to 35 per cent if Malta is portrayed as itself or if local facilities like the Malta Film Studios are used. Employing local crews can boost the rebate to 40 per cent, provided specific department targets are met.
Rebates are assured, as long as productions adhere to the guidelines, including strict accounting and reporting rules, ensuring transparency and compliance.
Productions can claim 10 per cent of the rebate upon the start of shooting, typically receivable within four weeks.
Eligible productions include feature films, TV shows, animation, and VFX work (even without on-location shoots, provided they collaborate with local studios). Applications must be submitted 30 working days before shooting begins. While local service companies can facilitate applications, it’s not mandatory for foreign producers to have them act as the primary applicant.
Tax Considerations
Malta’s tax environment is favourable for productions:
VAT at 18 per cent is refundable (with a 7 per cent rate on accommodation).
Foreign performers pay a 10 per cent withholding tax, while non-EU crew may face specific tax and social security obligations based on Malta’s double taxation agreements.
Support and Limitations
Producers must hire at least five trainees and provide hero props or costumes to the Malta Film Commission for promotional use.
While no cap exists on Below-the-Line (BTL) expenses, Above-the-Line (ATL) costs are capped at €5 million and must not exceed 30 per cent of the total eligible spend.
Additionally, Malta prohibits double-dipping of EU state aid and has a mandatory 0.5 per cent contribution to the “Opportunity for All: Skills Development Fund.”
The current incentive scheme is valid until October 2028. Producers are encouraged to act swiftly to capitalise on these lucrative opportunities, leveraging Malta’s world-class facilities, skilled workforce, and streamlined processes. For more information on the cash rebate scheme, visit Screen Malta’s guidelines.
