Tax rebates for shooting a feature film in Hungary

Motion Picture Act and Corporate Tax Act: Introduced by the Hungarian government in 2004, this act provides favourable conditions for shooting films on location in Hungary. This financial support system has two pillars: indirect state support (tax incentives for films and related projects) and direct state support (for local films or co-productions). Feature films, short films, documentaries, science, nature and animated films, TV movies and TV series are eligible for indirect state support. Feature films, animated films and documentaries (min. 70 minutes) are eligible for direct state support. Cost benefits: Foreign Producers can reduce their costs up to 37,5% of expenses incurred directly in Hungary. Eligible expenses include all payments contained in the budget that were paid to Hungarian and partially to non-Hungarian taxpayers.



Hungarian Spend $1000
Non-Hungarian Spend (max. 25% of HUN) $250
Basis of Tax Rebate (max. 125% of HS) $1,250
Tax Rebate $375

50% of nonHUN cast/crew costs, taxable in Hungary based on treaty, is qualifying as HUN Spend!