Written by David Lewis on Aug 19, 2008. Posted in Incentive News

Hungarian film incentive increased

Hungary’s tax relief system for the film industry has been amended to encourage even more production in the Eastern European hub. The cash rebate of up to 20% of eligible Hungarian production expenses has been amended to include a further 5% rebate on non-Hungarian spend. This is available through the European Union’s ’territorialisation rule’.

Foreign productions are now subject to a cultural test in order to qualify for the rebate. Productions have to achieve minimum 16 points out of 32. They also have to meet at least two of the eight cultural criteria. The cultural test, however, is considered to be a mere formality.