Incentive for International Productions

The Reimagined System of 2023

Austria’s breathtaking nature, stunning architecture, and rich cultural heritage have made it a sought-after destination for film productions over the past decades. Following the EU trend that began in the early 2000s, Austria established its own funding system for international productions, refining and rethinking it multiple times over the years. Despite these efforts, the initial versions of the program fell short of achieving their intended impact. This led the Austrian government to introduce a much simpler and more accessible tax rebate system in 2023.

The primary goal of the 2023 system is to bolster Austria’s global standing as a premier international filming location. Additionally, it aims to boost tourism, promote sustainability, increase tax revenues, and expand job opportunities for film industry professionals.

The Foundation of the Program

A key feature of Austria’s program is its lack of a minimum overall production cost requirement for eligibility. The only minimum criteria apply to Austrian expenditures, which vary depending on the type of project. Additionally, the program operates with an unlimited annual budget. This guarantees funding for eligible productions at any time of the year, regardless of the number or scale of previously supported projects.

Unlike similar incentives in other countries, which typically support content created exclusively for cinema or television distribution, Austria’s program also includes productions intended for streaming platforms. Beyond traditional live-action projects—including fiction, non-fiction, and documentaries—animation films, VR content, VFX projects, film music production, and post-production work are also eligible. For these categories, special provisions with lower minimum local spending requirements have been introduced, making the funding accessible to an even wider range of project types and sizes.

Technical Details of the System

The program’s framework is established by Law No. 219, dated December 29, 2022 (official title: “219. Bundesgesetz, mit dem ein Filmstandortgesetz 2023 erlassen wird und das Filmförderungsgesetz und das KommAustria-Gesetz geändert werden”). This law amends the Austrian Film Law, specifically Paragraph 7 of 2023 (official title: “§ 7 Filmstandortgesetz 2023 des Bundesministers für Arbeit und Wirtschaft”). Together, these laws provide the general directives for the program, while granting FISA+ the authority to define the specific procedures and details within their published guidelines.

A distinctive feature of the Austrian system is its requirement for productions to adhere to the Austrian film crew unions’ regulations, known as the “Kollektivvertrag,” for costs to qualify for funding. This annually updated agreement outlines crew members’ employment conditions, including rights, wages, and work hours, ensuring compliance with union standards.

Other noteworthy aspects of the program include a typical evaluation period of 30 working days and a standard funding rate of 30%. Payments are made in installments: 30% of the approved funding is disbursed at the start of the shoot, while the remaining 70%—adjusted to the finalized budget—is provided after completion.
 

As previously mentioned, a local production company is required to apply for the tax rebate. Progressive Productions not only fulfills all the necessary requirements to submit funding applications but also brings extensive expertise in navigating the tax incentive system and the Austrian film industry as a whole.

Green Filming Bonus & Gender Gap Financing

In addition to the standard categories of eligible costs, Austria’s system offers two unique incentives. The first is Gender Gap Financing, which provides an additional €25,000 on top of the standard 30% tax rebate. Productions can apply for this bonus if a specified number of female employees are engaged in key departmental roles. The second is the Green Filming Bonus, offering an extra 5% tax incentive in addition to the 30% rebate.
 

As a global leader in sustainability, Austria integrates “green” solutions into both daily life and business practices. The Green Filming Bonus reflects this commitment, aiming to support and encourage productions to adopt environmentally friendly practices rather than simply focusing on cost-cutting. This is the reason that this extra 5% was chosen to be offered on top of the basic 30% funding in order to cover the extra costs of “green” services and solutions.

To qualify for this additional 5%, both production companies and their projects must meet stringent requirements. These criteria encompass equipment used by various departments, transportation of cast and crew, accommodation, meals, and most elements of the production process. Eligibility is evaluated based on a detailed sustainability plan submitted with the funding application. This plan must outline which steps defined in the program’s guide will be implemented and how they will be carried out. A Green Officer, appointed by the production, ensures compliance, while the funding organization monitors progress to confirm the goals are achieved.