QUICK GUIDE TO NATIONAL FILM FUNDING IN ITALY

QUICK GUIDE TO NATIONAL
FILM FUNDING IN ITALY

WHO WE ARE
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ART. 9 of the Italian Constitution
The Republic promotes the
development of culture and scientific
and
technical research.
It safeguards natural landscape and the
historical and artistic heritage of the
Nation.
Directorate-General Cinema
is the department of the
Ministry of Cultural Heritage and Activities and Tourism
that manages the National Film Fund.
DG Cinema supports film industry through
Direct aids: GRANTS
Indirect aids: FISCAL INCENTIVES
State aids are available for all sectors of film industry: development,
production, distribution, exhibition, film festivals and promotion

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DIRECT FINANCING SCHEMES FOR
PRODUCTION
SUPPORT TO THE PRODUCTION OF FILM PROJECTS
Support to feature films and short films recognized as of Cultural Relevance:
•contribution aimed at the production of films by established directors
Up to 35% of the Italian share – max € 1,5M
•contribution aimed at the production of debut and second films
Up to 80% of the Italian share – max € 750K
•contribution aimed at the production of short films (under 75’)
max € 40K
• contribution aimed at the development of original screenplays
Max € 35K
SELECTIVE
2015 6M€
budget for
films
directed by
young
director
(under 35)
Support to films
regardless of their genre
(live action or documentary)
and of the Italian quota
(100% IT / IT MAJ / IT MIN)
THE TALE OF TALES (Matteo Garrone, 2015) made with DG Cinema contribution

INDIRECT SUPPORT – FISCAL INCENTIVES
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AUTOMATIC
TAX CREDIT for FILMS/AUDIOVISUAL WORKS
NATIONAL & COPRODUCTIONS
FISCAL INCENTIVES for FOREIGN
FILMS/AUDIOVISUAL WORKS
TAX CREDIT for FILM/TV/WEB PRODUCERS
(within the Italian share)
TAX CREDIT for FOREIGN FILMS
TAX CREDIT for OUTSIDE INVESTORS in film
production ( within the Italian share)
TAX CREDIT for FILM DISTRIBUTORS in Italy
TAX CREDIT for DIGITIZATION OF CINEMA
THEATERS
PER AMOR VOSTRO (Giuseppe Gaudino, 2015) made with DG Cinema contribution

Relevant Definitions: National VS Foreign Film
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National film
Foreign film
Film that received a positive
Italian nationality assessment
Beneficiary
Film production companies
taxable in Italy, registered in the
Film Industry lists established
and kept by the Directorate-
General Cinema
Film which has not received a positive Italian
nationality assessment
Beneficiary
Executive Production Companies (line
producers ) and Technical Industries taxable in
Italy, registered in the Film Industry lists
established and kept by the Directorate-
General Cinema, on commission by foreign
production companies
Foreign film production company
Company which does not have a registered
office, fiscal domicile or permanent
establishment in Italy

Co-productions
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An authorized co-production gives access to all benefits intended for national films such as:
‣ direct selective funding to film production (Films of Cultural Relevance)
‣ direct selective funding to script development
‣ tax credit for producers (within the Italian share)
‣ tax credit for outside investors who share the production costs (40% tax credit on their
investment within the 49% of the italian share)
‣ tax credit for distribution in Italy (10% or 15% tax credit on national distribution expenses )
‣ percentage on box office revenues
YOUTH
(Paolo Sorrentino, 2015)
Made with DG Cinema contribution

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CO-DEVELOPMENT FUNDS
FOR CO-PRODUCTIONS
EUROPE
Directorate General Cinema has signed different agreements aimed at the development of screenplays of projects made as coproductions
with other countries. As for now, the following funds are in force:
France
Agreement between DG Cinema and
CNC for the development of Italian-
French feature films
Maximum contribution : € 50.000
and not > to 70% of development
budget
Macedonia
Agreement between DG Cinema and
MFA for the development of Italian-
Macedonian feature films
Max contribution: min. 5.000 € per
no more than 3 projects
2015 € 500.000 2015 € 60.000
Next deadline : 29 th February 2016 Next deadline : 15 th March 2016
Germany
Agreement between DG Cinema an
FFA for the development of Italian-
German feature films
Maximum contribution : € 30.000
(min € 10.000) and not > 80% of
development budget
Next deadline: 15 th December
2015
2015 € 100.000
Elegibility Criteria:
• feature film (=>75 minutes), any genre (live action, documentary,
animation)
• Project primarily destined to the theatrical release
• Do NOT submit the Declaration of PP
• Application submitted by at least an Italian producer and a foreign
producer
• NO financial co-productions
• Minimum 20% maximum 80% of co-production share
• Deal memo (no letter of intent)

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CO-DEVELOPMENT FUNDS FOR CO-
PRODUCTIONS
REST OF THE WORLD
Canada
Agreement between DG
Cinema and CMF ( Canada
Media Fund)
2015 € 150.000
2015 € 150.000
Elegibility Criteria:
- One- off documentary , more than 31
minutes;
- Projects destination: theatrical release or to
Tv and Web;
- Do NOT submit the Declaration of PP;
- at least an Italian producer (enrolled in the
lists of Mibact) and at least a Canadian
producer;
- Co-produciton Deal memo;
- For the Canadian part of the budget, at least
a 25% development fee by a Canadian
broadcaster
Notification of sucessful applicants: mid
December 2015
Development of screenplays
Brazil
Agreement between DG Cinema
and ANCINE for the development of
Italian-Brazilian feature films
Elegibility Criteria:
2015 € 80.000
- feuture film (more than 75 minutes) of any
genre (live action, documentary, animation);
- Project primarily destined to the theatrical
release;
- Shooting not started yet;
- at least an Italian producer and at least a
Brazilian producer;

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Italian Tax Credit for
National Films and Coproductions
Cultural eligibility test aimed at
guaranteeing Italian cultural identity.
Minimum total score: 50/100.
TERRITORIALISATION
REQUIREMENTS
At least 80% of the
amount of the benefit
must incur in Italy
If more than 50% of the total shooting
days are carried out in Italy all
production expenses are taken into
account for territorialisation.
15%
Of the eligible Italian
production expenses
within the Italian share
CAP
Up to a maximum amount
of € 3.5 M per production
company per year
€ 23 M is the maximum
eligibile expenditure by the
Italian producer
Eligible costs - production expenses paid by the Italian producer within its share:
• Financial, insurance and warranty expenses up to a 7.5% of the production cost
• Overhead expenses up to 7.5% of the production cost
• Production staff costs up to 25% of the production cost
• Producer fee not included

Italian Tax Credit for
Foreign Films
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Cultural eligibility test aimed at
guaranteeing Italian or European
cultural identity.
Minimum total score: 50/100.
Eligible production
expenses on Italian
territory, not exceeding the
60% of the total budget
Any expenses incurred in another
EU member State are to be treated
as expenses incurred in Italy up to
30% of the overall budget
25%
Of the eligible executive
production cost per each
work
CAP
Up to a maximum amount
of € 10 M per line producer
per year
€ 40 M is the maximum
eligibile expenditure in
Italy
THE TOURIST (Florian Henckel von Donnersmarck
2010) made with the Italian tax credit

Tax credit for indipendent
tv and web producers
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National works and co-productions
• Beneficiary: Italian indipendent tv and
web producers
• Cap: € 3.5 M per production company
per fiscal year
• Tax credit rate: 15% of the eligible costs
• Spending obligations on the territory:
50% of the eligible costs
Foreign works
• Beneficiary: Italian executive production
company (line producer)
• Cap: € 10 M per line producer per fiscal
year
• Tax credit rate: 25% of the eligible costs
• Eligible expenses < or = 60% of the work's
production budget (Any expenses
incurred in another EU member State are
to be treated as expenses in Italy up to
10% of the budget)

Italian Tax Credit for Foreign Films
Foreign production companies useful steps
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Pick up an Italian executive production company (line producer)
registered in the Official Film Industry List and able to offset tax debts.
Negotiate the production service contract considering tax credit
percentage in the rebate agreement.
Supervise the administrative procedure:
Countersign the
preliminary application
submitted by the line
producer and ascertain
the achievement of a
Cultural eligibility
positive assessment
Follow the line producer
monthly offsetting of tax debts
such as local VAT, corporate
income tax, regional income tax,
social contribution, etc.
Countersign the final
application submitted
by the line producer and
ascertain the
achievement of the final
authorization

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Please, contact us at:
Directorate General Cinema
Ministry of Cultural Heritage and Activities and Tourism
Piazza Santa Croce in Gerusalemme 9A, Roma
www.cinema.beniculturali.it
dg-c@beniculturali.it