New Film Studios in Estonia Set to Boost Filming in the Baltics

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For approximately ten years, the film industry has been increasingly attracted to northeastern Europe, particularly Estonia, Latvia, and Lithuania, due to their appealing filming incentives. Evidence of this trend can be seen in the fact that three significant European co-productions destined for Cannes have opted to film in Latvia: “The Chronology of Water” starring Kristen Stewart, “Two Prosecutors” by Sergei Loznitsa, and “The Disappearance of Josef Mengele” directed by Kirill Serebrennikov.

The primary attractions for filming in the Baltics lie in their generous tax incentives and cash rebates of up to 30% on local spending, coupled with co-production opportunities, regional funding, and a skilled workforce. Additionally, production costs are competitive, locations vary from historic castles and Soviet architecture to rugged coastlines and untouched forests.

For instance, Swedish producer Piodor Gustafsson, who filmed Frank Spotnitz’s co-produced series “We Come in Peace” in Lithuania in 2024, was impressed by the “refreshingly simple” tax rebate system, the “exceptionally high” quality of the crew, and the abundance of strong acting talent who were also fluent in Russian and English. Likewise, French/Swedish producer Patrick Nebout had only positive things to say about his experience filming Disney+’s satire “Whiskey on the Rocks” in the largest Baltic nation in 2023.

A significant challenge for filming projects in the Baltic region has been the absence of specialized studio facilities. However, this situation is set to improve, as Estonia takes the initiative, with Latvia and Lithuania close behind.

The Cultural Endowment of Estonia is financing a new $25 million film studio in Tallinn, dubbed the Tallinnfilm. This will mark Tallinn’s first top-tier production facility, previously known as Tallinn Film Wonderland. Overseen by the Estonian Film Institute, construction on this filming hub is scheduled to start towards the end of 2025. Nikolai Mihailishin, a service provider at Münchausen and council member of Tallinn film, expects that by early 2027, there will be three studios, spanning approximately 38,000 square feet each, ready for use. Additionally, plans are in place to develop an additional 21,000-square-foot area.

According to Edith Sepp, the head of the Estonia Film Institute, the proposed film facility in Tallinn is designed to be cutting-edge and seamlessly connect with the broader Estonia Film Institute network. She highlights that this project will not only bolster local filmmakers but also adhere to top-tier international production standards, thereby enticing foreign projects and skilled professionals.

Simultaneously, in Eastern Estonia’s Ida-Viru county, another studio is set to open in early 2026. The $18.2 million Ida Hub studio complex, funded by the European Union’s Just Transition Fund, will feature a 21,000-square foot soundstage and a smaller, versatile studio. Additionally, it will offer production training facilities.

According to Sepp, the Ida-Hub complex holds both cultural and geographical importance. It’s expected to stimulate the local economy, create employment opportunities, and attract film production to a part of the country that has been underserved in this regard.

For Sepp, these two studio initiatives represent a strong commitment from the government towards boosting the local film industry. Specifically, Film Estonia’s cash rebate fund will increase from $6.8 million to $11.3 million by 2026. Notably, among the recent American projects that have been handled locally are “The Agency,” a Paramount+/Showtime production, which is the largest U.S. film project hosted in Estonia since “Tenet.

In Latvia, you can get up to a 50% cash refund on money spent locally. Out of this, 30% comes from the Latvia’s Investment and Development Agency (LIAA), while an extra 20% is provided by the Riga Film Fund. As reported by Alise Ozolina from LIAA in 2025, a total of 14 film projects have received $12.1 million as rebates for costs amounting to $39.8 million that were eligible for this incentive.

Loznitsa’s film “Two Prosecutors,” a joint production with Lithuania, was entirely filmed in Latvia, as confirmed by co-producer Alise Gelze from White Picture. On the other hand, “The Disappearance of Josef Mengele,” another production by Forma Pro Films, spent two weeks filming in Latvia, while the remainder was shot in Uruguay.

Forma Pro Films, one of the nation’s largest film service companies, recently presented “The Chronology of Water” for a 26-day run, along with several additional days at their Malta location. The production team included Forma Pro Films members Svetlana Punte, Yulia Zayceva, and Max Pavlov, who served as producers alongside Stewart’s Nevermind Pictures, CG Cinema International, and Scott Free.

To enhance round-the-year shooting possibilities, the team proactively constructed Riga’s LED Unit studio three years ago, which is among the biggest in Europe.

The upcoming world-class infrastructure project in Latvia, known as the Riga Stages, with an estimated cost of $26.2 million, is currently at the financing stage. Led by Latvia’s Film Service Producers Association (FSPA), this project is a significant step forward for Latvia. As Janis Kalejs, head of FSPA and founder of Film Angel Productions, explains, while we already have facilities like Cinevilla backlot, located 25 miles from Riga, and the Riga Film Studios (the largest stage complex in the Baltics since 1965), they are outdated. Now that Latvia’s rebate system is stable, it’s time to construct new, modern facilities.

Unlike Estonia and Latvia, Lithuania’s film production incentive operates under a tax-shelter model, with an annual budget limit set at $66.6 million. This is not a fixed or government-allocated amount; rather, it can be accessed based on demand. The head of production at the Lithuanian Film Centre, Deimantas Saladžius, explains that this system offers Lithuania a substantial advantage in terms of flexibility and predictability because of its on-demand nature.

In 2024, a total of eleven foreign projects benefited from incentives, with the American series “Truth and Conviction” and Sony Pictures Television’s futuristic show “Star City” being two examples.)

Saladžius remarks that the initial phases of constructing Lithuania’s first major soundstage are being undertaken by the Vilnius city municipality. He adds, “Any new infrastructure development in the Baltic region is a promising indicator for everyone involved.

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2025-05-17 20:48