Iceland offers one of the most competitive film and television reimbursement schemes in the world: up to 35% back on production costs, with a straightforward application process, no cap on total spend, and stunning locations within easy reach of each other.
A character from the TV show Katla stands by glaciers surroundings
The reimbursement incentive is based on special legislation and is simple, transparent, and effective. Production costs are all costs incurred in Iceland that are deductible under Iceland’s Income Tax Act. Whether you are producing a feature film, TV series, or documentary, Iceland offers unmatched value, professional crews, and world-class services.
Every feature film, TV series, and documentary that incurs production costs in Iceland qualifies for a 25% reimbursement. There is no minimum spend requirement and no cap on the total amount.
Productions can qualify for a 35% reimbursement in two ways:
All three of the following conditions must be met:
Feature films, documentaries, and animated productions made specifically for audiences aged 18 and under automatically qualify for the 35% rate. There is no minimum spend requirement for this category.
Children’s content is defined as film or television content intended for audiences aged 12 and under. Youth content covers audiences aged 13 to 18.
Applying for reimbursement is a straightforward procedure. Applications are submitted online to the Icelandic Film Centre and must be submitted before production begins.
What is Iceland’s film production reimbursement rate?
Iceland offers a 25% reimbursement on all eligible production costs as a baseline, with a 35% rate available for large productions and for all children’s and youth content. There is no cap on the total reimbursable amount.
Is there a minimum spend to qualify?
No minimum spend is required for the 25% base rate. For the 35% enhanced rate under the large-production route, costs incurred in Iceland must reach at least ISK 350 million.
What production costs are eligible?
All costs that are deductible under Iceland’s Income Tax Act and are directly incurred in Iceland during pre-production, principal photography, or post-production. Wages and contractor payments are only eligible if they are taxed in Iceland.
Does children’s or animated content qualify for the 35% rate?
Yes. Since December 2025, all feature films, documentaries, and animated productions made specifically for audiences aged 18 and under automatically qualify for the 35% rate — with no minimum spend requirement. Children’s content covers audiences aged 12 and under; youth content covers ages 13 to 18.
What is the 80% rule?
If more than 80% of a production’s total costs are incurred in Iceland, the reimbursement is calculated on all eligible costs across the entire European Economic Area (EEA), including Greenland and the Faroe Islands.
When must I apply?
Applications must be submitted to the Icelandic Film Centre before production begins in Iceland. The reimbursement request must then be filed within six months of the end of production.
When does the Iceland film incentive expire?
The current legislation is valid through 31 December 2028. It has been renewed regularly since 1999 and is considered a long-term pillar of Iceland’s film industry strategy.
What content is not eligible for the reimbursement?
The scheme does not cover commercials, music videos, news content, short films, recordings of sporting events or entertainment, or content made primarily for exhibition in a company’s own distribution platform.
Black sands, glaciers, and snow-capped mountains, lava fields, waterfalls, lakes and lagoons with floating icebergs, the stark highland interior, tundra, moors patched with blue ponds, steam emitting, red and yellow sulfur mountains, scenes of serene beauty. For film producers, the best part is that the varied sceneries are not far apart and easily accessible.
A short drive can take film crews from black beaches, through lush greenery and colorful towns, into barren highlands, or towards glacial tongues and majestic mountains. This nature has represented anything from the Himalayas and the US Midwest to mythical worlds and distant planets.
Apart from the unique landscapes, the light in Iceland is the first thing you'll notice as from mid-May to mid-August, the sun only sets for around 3 hours, and there is effective light for 24 hours during this period.
Finally, Iceland is closer than you think: from New York, the flying distance to Iceland and San Fransisco is the same. There are daily direct flights to Iceland from major gateways in Europe (2,5-3 hours) and North America (5-6 hours).
European content classification. Since Iceland is a member of the European Economic Area, films and television programmes made in Iceland receive European content status. This entitles Icelandic productions to be classified as European material when released in Europe, without affecting any quotas on the release of non-European content material there.
Through Iceland's membership of the European Economic Area, films and television programmes made in Iceland can receive grants for the development and distribution and promotion of Icelandic projects and for the training of professionals offered by the MEDIA Program of the European Union.
Iceland is a member of Eurimages, the Film Fund of the European Council which is based on the European Convention on Cinematographic co-production. Thus Icelandic producers can apply for production grants for European co-productions.
