Incentives to film in Iceland
Special legislation has been passed in Iceland. The goal is "To enhance domestic culture and promote the history and nature of Iceland" by temporarily supporting motion pictures and television programs produced in Iceland.
The State Treasury's reimbursement is 25% of the cost incurred in the production of films and television programs in Iceland.
Production cost refers to all costs incurred in Iceland deductible from enterprises' revenues under the provisions of the Act on Income. Payments pertaining to employees and contractors are only to be included in production costs if they are verifiably taxable in Iceland. When more than 80% of the total production costs of a motion picture or television program are incurred in Iceland, the reimbursement is calculated based on the total production cost incurred within the European Economic Area (EEA). The reimbursement scheme does not include the production of commercials or music videos.
Fjord in Iceland
ICELAND AND EUROPEAN COUNTRIES COOPERATIONS
European content classification
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.
The media program of the European Union
Through Iceland's membership of the European Economic Area, films and television programmes made in Iceland can receive grants for development and distribution and promotion of Icelandic projects and for 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.