The application of incentives in the audiovisual industry has been a major attraction for foreign investment, according to the third annual report on the audiovisual industry in Spain 2025, prepared by the Spain Audiovisual Hub. Between 2016 and 2019, the study indicates, foreign  spending on filming, post-production services and visual effects was around 130 million euros per year.

Following the approval of an increase in the tax incentive in 2020, the figure doubled in 2021 to 264 million euros invested in 43 projects. In the period between 2021 and 2024, the direct spending generated by foreign productions in Spain amounted to 879 million euros.

Sustainable growth
By number of projects, the report has identified 165 international productions under the incentive between 2019 and 2022, involving an estimated total expenditure of 1.32 billion euros. The effect of the pandemic led to a one-off decrease in 2020, with 145.9 million euros compared to 343.3 million euros in 2019. There was a sustained recovery from 2021 onwards, and by 2022 investment already exceeded the 2019 figure by 50%.

With this data, the Spain Audiovisual Hub report estimates that, since 2020, this foreign spending has contributed to creating an average of around 7,080 full-time equivalent jobs each year. Furthermore, it calculates that the return on tax relief was nine euros for every euro incentivised. 2.20 of this amount corresponds to the direct impact linked to filming operations.

Economic and cultural driver
In addition, the annual report on the audiovisual industry reflects the robustness and modernisation of the Spanish audiovisual industry, and its role as an economic and cultural driver with an international reach. The report explains that the Spain, Audiovisual Hub of Europe Plan and European funds are likely to have contributed to the industry’s positive transformation and strong economic growth between 2021 and 2024.

The report highlights the recovery from the pandemic and addresses the challenges associated with financing, digitisation and internationalisation. It analyses the growth of cinema, animation and international co-productions, the consolidation of television fiction, the leadership of the OTT market (audio and video on the internet) and the advance of the video game industry, esports (electronic sports) and extended reality. It also describes the growing importance of sustainability and gender equality across the industry.

^{Photo: Spain Audiovisual Hub}