Italy’s thriving movie industry: tax credits and a promising future

While the AFM has taken up residence in Las Vegas, one thing remains unchanged: Italy’s unwavering dedication to becoming a premier destination for international film production.

Italy: A cinematic powerhouse with more to offer

Italy’s legacy in the film industry spans decades, characterized by its rich culture, fashion, and scenic beauty. However, it’s not merely the picturesque landscapes and historical sites that have filmmakers flocking to Italy; the country has significantly bolstered its infrastructure, thanks to the world-renowned Cinecittà Studios. As Marco Valerio Pugini, president of the Association of Executive Producers – Production Service Companies (APE), aptly puts it, Italy is not resting on its laurels. The nation is striving to refine an already impressive film production environment.

A showcase of incentives

On November 7, the “Focus on Italy” showcase, coordinated by DGCA-MiC, Cinecittà, APE, and ITA (Italian Trade Agency), will delve into why filming in Italy has never been more enticing. A substantial part of this allure is the newly crafted tax credit system focused on non-Italian productions.

A booming production scene

According to recent industry reports, Italy produced 402 films last year, marking a 13% increase from 2022 and a 27% increase compared to 2019. This boom is not limited to films; the audiovisual sector also saw a significant uptick, with 248 products created, which is more than double the output of 2019.

Prominent productions such as Luca Guadagnino’s “Queer” featuring Daniel Craig, Edward Berger’s “Conclave,” and Netflix’s “Ripley” have chosen Italy as their backdrop. It’s clear that Italy’s allure is not just geographical but also financial.

Discover more about the latest productions in Italy

The tax credit advantage

Marco Valerio Pugini emphasizes the transformative power of the 40% tax credit on the landscape of Italian cinema. During the Focus on Italy showcase, Pugini will be joined by key industry figures such as APE’s vice president Cristina Giubetti, Cinecittà CEO Manuela Cacciamani, senior international sales manager Francesca Rotondo, and Roberto Stabile, head of DGCA-MiC Special Projects.

“It has allowed our entire infrastructure to grow and broaden its horizons,” says Pugini, projecting optimism about a future where both international and Italian productions flourish. He points out that the tax credit benefits all types of projects, from large-scale feature films to small documentaries, providing they meet criteria such as spending at least €250,000 in Italy and passing the cultural eligibility test.

Read more about Italy’s tax incentives

Enhancing infrastructure and talent

The positive changes brought about by the tax credit system have been manifold. It’s not just about the financial incentives but also the growth in infrastructure and talent. Given that a significant number of the crew involved in international productions are local, Italy has seen a surge in employment and skill development within the industry.

Industry insiders are optimistic. The planned developments at Cinecittà Studios, aimed at constructing new stages by next year, are expected to further elevate Italy’s capacity to host major productions.

“We’ve built a Ferrari with our tax credit system. Now, we need a circuit for it to run,” Pugini metaphorically states, underscoring the importance of matching an excellent system with the necessary physical and logistical infrastructure.

The path ahead

The upcoming Focus on Italy event seeks to attract new investments and sustain the current momentum of the Italian film industry. Detailed presentations on the reformed tax credit will go hand-in-hand with showcasing Cinecittà’s facilities, affirming its technical prowess and reputation as a cradle for creativity.

APE’s support has been instrumental for many international projects, significantly impacting the local job market and revenue generation. The involvement of ITA with a delegation of 12 companies, spanning production and distribution, emphasizes Italy’s commitment to growing its cinematic footprint.

Pugini’s reflections capture the industry’s dual nature of challenges and excitement. As Cinecittà continues to expand, the prospects for Italy as a global filming destination look promising. The robust tax credit system, combined with continuous infrastructure improvements, offers a compelling reason for filmmakers worldwide to consider Italy their next filming location.

For those hungry for more updates on Italy’s ever-evolving film production landscape, stay tuned and share this exciting news with fellow enthusiasts across social media platforms. Keep up with the trends, and witness how Italy transforms into the centerpiece of global cinema.