Incentives Make the World Go Round: The Basque Country’s Production Surge

As a long-time resident of the Basque Country and a passionate supporter of its film industry, I can confidently say that the region is not just riding the wave of incentives, but surfing it with style and grace. The tax breaks have been a game-changer, opening doors for local talent to tell global stories and attracting international productions to our shores.


The generous tax incentives propel movie-making across the Basque Country, and Bizkaia region is particularly enticing. Boasting already appealing incentives, it has upped the ante by offering some of the most competitive tax reductions in Spain – as high as 70%. This attractive offer has promptly sparked a significant increase in film production, with EbMaster reporting a fourfold rise in 2023 alone. The list of upcoming projects remains robust and unyielding.

Riding the Wave of Incentives and Support

Koldo Zuazua, a prominent producer from Kowalski Films in the Basque region, states that tax incentives have provided a substantial impetus for us. This has not only sparked local productions but also drawn in projects from beyond our region. The impact on the industry has been profound, reshaping the production terrain dramatically over just a few years. It’s not just about the money; it’s also enhancing the caliber and scope of our projects significantly. Shows like “Querer” and Iciar Bollain’s latest film “Soy Nevenka,” both at San Sebastian, are clear indicators of this transition.

Animation Upswing: Local Talent, Global Stories

One of the region’s thriving sectors is animation. Alberto Vázquez’s “Decorado,” one of the latest co-productions from UniKo, follows last year’s “Sultana’s Dream” and the Goya-winning “Unicorn Wars,” pushing the studio’s Goya tally to six. “Our strategy has always been to work locally with a global perspective. We leverage local talent in Bilbao to tell universal stories that resonate globally, allowing us to create high-quality content that stands out beyond our borders,” UniKo CEO Ivan Miñambres said. “Animation allows us to maintain a fixed base without the need for constant travel for each shoot.” The notable surge in global animation box office will only bolster production in the years to come.

Power of Partnerships: Local Meets Global

In Europe, collaborative productions are highly valuable, and Basque production teams have mastered the art of managing them. The attractive tax benefits make these partnerships even more appealing, enhancing Basque involvement in both domestic and international ventures. As Zuazua put it, “Tax incentives have provided us with opportunities to co-produce with companies across Spain and beyond. This has allowed us to progress from being secondary partners to playing leading roles in major projects.” Leire Apellaniz, from the boutique production house Señor y Señora, which co-produced Toronto Platform nominee “Daniela Forever” and the critically acclaimed “Samsara”, agrees, stating that working with top Basque companies like Irusoin, as well as national partners such as The Mediapro Studio and Apache Entertainment, has broadened their aspirations.

Incentives Make the World Go Round: The Basque Country’s Production Surge

Breaking Boundaries: Innovation at the Heart of Basque Cinema

Each region possesses its own distinctive spirit, shaped by its past events, enriched by its tales, and manifested in its artistic expressions. However, to truly capture attention, one must take bold steps. “Our works are characterized by daring storytelling and a passion for creativity, delving into novel cinematic vocabularies and challenging genre norms. We don’t fear the risk of being overly reliant on past triumphs; our forthcoming ventures continue to break new ground,” Apellaniz explained.

Growing Pains: Navigating Talent Shortages Amid Surging Demand

The challenges of survival are gone, but the challenges of growth are apparent to all. “There’s significant rising costs of production as demand increases. The influx of projects has driven up rates for technicians and talent, and the cost of accommodation is a growing concern,” notes Xabi Berzosa, head of Irusoin whose latest “Marco” closes the festival’s best of fests Perlak section out of competition. The cities, Bilbao, San Sebastian and Vitoria-Gasteiz are vibrant but not vast. “This is not a huge territory, and we don’t have 20 DPs and 100 production teams. The number of people here is what it is, and getting a good production team for your own project takes a lot more time than some years ago,” Berzosa said.

Talent Pipeline: Cultivating the Next Generation of Filmmakers

Addressing the issue of talent drain in the Basque Country, particularly among female talents, requires strengthening small and medium-sized businesses economically and industrially. Apellaniz emphasized this need, stating that a strong industrial network must be established to foster growth within the sector. The upcoming 1.1 million-square-foot audiovisual hub in Bilbao, equipped with digital sets, studios, and post-production facilities, may serve as an incentive for both aspiring talent and investors. Additionally, grassroots initiatives like Talentuaren Gunea – a Talent Day – spearheaded by promotion organization Zineuskadi, are instrumental in nurturing local talent and encouraging growth from the ground up.

Future Proofing: Sustaining Growth and Expanding Horizons

While incentives, infrastructure, and education are crucial, the true measure of success and confidence in its future will be the quality of films and their impact beyond the region. “I strongly believe in the power of divergent films to transform society. Our region is seizing the opportunities provided by financial policies to promote environmentalism, anti-racism, feminism, and diversity through film,” Apellaniz said.

Other areas could potentially imitate our tax strategies, but Basque manufacturers view this as an opportunity instead of a threat. The secret to maintaining growth lies in striking a balance once other Spanish regions implement comparable tax breaks. Although we may witness a reduction in production output, this adjustment could maintain cost stability and secure the Basque Country’s position as an attractive and competitive destination for top-tier film production, according to Zuazua, who spoke with the calm wisdom expected of a seasoned producer.

Incentives Make the World Go Round: The Basque Country’s Production Surge

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2024-09-24 08:16