karanovic-nikolic.com Guide Production Film Content
01 Introduction 2
02 Bosnia and Herzegovina 3
03 Croatia 6
04 Macedonia 9
05 Montenegro 12
06 Serbia 16
07 Slovenia 19
08 Regional Film 22 Production Summary
09 Our Network 24 Content
01 Introduction 2
02 Bosnia and Herzegovina 3
03 Croatia 6
04 Macedonia 9
05 Montenegro 12
06 Serbia 16
07 Slovenia 19
08 Regional Film 22 Production Summary
09 Our Network 24 01 Introduction
Our Guide to Film Production is designed to Our regional legal practice advises on answer some of the most common questions strategic and legal representation in the we get from our clients in this field. It is establishing companies, obtaining all the designed to provide a short overview of various permits and regulatory approvals, the advantages of film production and post in negotiations with local production and production and the challenges faced by service companies, as well as film financing international production companies in our assistance and documentation work. part of the world. We advise clients on how to prevent The Balkan region with its seemingly disputes, which is always better, but we endless fields, mountains, lakes, beaches also advise on local court and arbitration and old towns, bore witness to the changing proceedings when they arise. Finally, no European landscape throughout history. film is complete without an international The film industry in the former Yugoslavia staff, and we help with work and residence was of global importance with companies permits, tax and customs procedures for the such as Jadran Film and Avala film heavily equipment, as well as with other tailored involved in foreign film production. As a legal services as clients need them. result, there were generations of reputable With over 160 specialised service providers directors and producers hailing from our in 6 markets our aim is to provide a fully region that have worked internationally at integrated service so that clients can focus the highest standard. Today, there is a new on what they do best – making films. generation eager to reap the benefits of We hope this information is useful for you local geography, culture and skilled labour, and if you have questions please contact us at a generation that is ready to re-build the [email protected] region’s allure for this industry. There has been a huge increase in film production in a number of countries and in this guide we examine why that is and what makes those countries attractive. This Guide highlights the main issues facing international and local producers and assists in understanding the complex system of tax credits, rebates and incentives offered by many countries in the region as a way to attract more investment in this field.
2 The central government’s power is Unfortunately, under the current regulation, 02 highly limited, as the country is largely the applicable laws in both entities do decentralised and comprises two not foresee any special incentives for autonomous entities: the Federation of film production (i.e. cash rebates or tax Bosnia & Bosnia and Herzegovina and the Republic incentives). This matter has yet to be of Srpska, with a third region, the Brčko further developed in order to attract foreign District, governed under local authorities. production companies to the country. Herzegovina The Federation of Bosnia and Herzegovina is itself quite complex and consists of Funds in the Republic of Srpska 10 federal units – cantons. The country The government of the Republic of Srpska is attractive to filmmakers due to low has adopted a number of updated and relevant production costs and its competitive laws which aim to promote and strengthen labour force, best illustrated by the fact the movie industry in this entity. The Ministry that the average net salary in 2016 was of Education and Culture, as the competent approximately EUR 430, while the body, is the one providing financial aid. The minimum salary was approximately EUR Ministry can fund feature films, short films, 205. The VAT is set at 17% for all sales of documentaries, animations, and alternative goods and services. Personal and corporate (experimental) films. Financial aid is based income tax are regulated on the entity level on the allocation of the entity’s budget, (the Federation of Bosnia and Herzegovina and due to the economic crisis, it has been and the Republic of Srpska) and are set at declining in recent years. The allocation in 10% along with double taxation treaties with 2015/2016 was approximately EUR 50,000. dozens of countries worldwide. The country maintains a high rate of literacy, Funds from the Ministry of Education and life expectancy and education levels and is Culture are granted in the form of subsidies Why Film in Bosnia and Herzegovina? one of the most frequently visited countries by means of a public tendering procedure. Bosnia and Herzegovina is a heart shaped in the region, projected to have the third country that lies in the middle of South East highest tourism growth rate in the world Funds in the Federation of Bosnia and Europe. It is here that eastern and western between 1995 and 2020. Herzegovina civilizations met, and enriched the country The Government of Federation of Bosnia in a unique way by combining different and Herzegovina established the Film Fund cultural and religious elements. Sarajevo, in 2002 and since then the Fund has been the capital city, boasts a cityscape which Q1. Any Funding? operating within the Ministry of Culture combines modern buildings, centuries-old and Sport of the Federation of Bosnia and Ottoman mosques and Austro-Hungarian Herzegovina in order to provide financial inspired architecture. The diversity which is Funds in Bosnia and Hercegovina support for the development of cinema reflected in Bosnia and Herzegovina’s cities Due to the structure of Bosnia and in Bosnia and Herzegovina. The Fund’s can also be observed in the spectacular Hercegovina, funding for movie production major objective is to stimulate, develop landscape which includes one of Europe’s is regulated at the entity and cantonal and improve creativity, entrepreneurship last remaining primeval forests, Olympic ski level. In general, potential candidates and production in filmmaking within the slopes, stunning waterfalls, and much more, who wish to apply for funding have to Federation of Bosnia and Herzegovina and making the country an excellent film-making go through a tender procedure where to support the organisation of film events, destination. additional information and documentation etc. In 2016, the overall budget of the Film There are a number of local production has to be submitted under the relevant rules. Fund was approximately EUR 880,000. companies, some of which have already Details on these procedures, the relevant As in the Republic of Srpska entity, finds are attained significant experience in working documentation and other additional advice granted in the form of subsidies by means of on reputable international projects. In 2015 are available upon request. a public tendering procedure. alone, a total of 51 films were produced in Bosnia and Herzegovina, including two feature films. Some Bosnian and Official name of country BOSNIA AND HERZEGOVINA Herzegovinian films have proven to be Population 3 867 3 5 great success stories, being presented at GDP in EUR (per capita) € 3,915 many acclaimed international film festivals Film Fund Sarajevo, Ministry of Culture of Republic Srpska, (inclluding Cannes and Berlin) and have Film suporting institutions (public) Ministry of Culture and Sports of Kanton Sarajevo earned many key film awards worldwide Public funding available in EUR approx. € 1,000,000 including a Golden Bear in Berlin (Grbavica by Jasmila Žbanić) and an Oscar Average production budget EUR € 750,000 (No Man’s Land by Danis Tanović). all information in the table provided by Sarajevo Film Festival 02 BOSNIA & HERZEGOVINA Q2. Who Will Support Me? Q3. A License to Film? - Stay up to 90 days: Foreign film workers can work in Bosnia and Herzegovina without a work permit if they do not stay Cultural activities are mainly regulated in In order to film at a specific location, for more than 90 days within a calendar the Federation of Bosnia and Herzegovina producers need to obtain adequate location year. Such individuals do require a at the cantonal level, meaning that every permits. certificate of work Office for Foreigners’ canton in the Federation has its own Affairs. competence to support and boost the film Depending on the location, such permits are industry. obtained from the competent Ministry of - Stay for more than 90 days: Foreign film Culture (of the Republic of Srpska or of the workers must obtain a work and residency The Association of Filmmakers of the relevant canton in the Federation), relevant permit in order to stay in the country for Federation of Bosnia and Herzegovina municipalities, and private owners (i.e. natural more than 90 days. has an important role in the development persons or legal entities) if filming is to take of Bosnian and Herzegovinian cinema, place on private property. The issuance of a work permit or an developing strategies and connecting employment permit is strictly limited by with the government, and also promoting The governing bodies or private owners quotas for certain categories of foreign Bosnian and Herzegovinian cinema abroad. have the right to ask for adequate workers. The annual quota is determined The Association of the Federation of remuneration for their participation in the by the Council of Ministers of BiH in Filmmakers of Bosnia and Herzegovina is filming process. accordance with the migration policy and a professional association, established in the situation in the labor market. Work accordance with the Law on Associations permits specified in the annual quota by and Foundations of the Federation which activities and professions shall be issued gathers professional filmmakers. Q4. A License to Film? first for the purpose of extending the already issued work permits, and then for new Although regulated by the Law on employment. Cinematography in the Republic of Srpska, Visas are not required in case of business a Centre for Film in the Republic of Srpska or tourist stays that are up to 90 days One should note that the procedure of has not yet been established. for citizens of EU countries, the United regulating the work and residence permits However, Bosnia and Herzegovina offers States, and some South-American and for foreigners is somewhat complicated one of the most important promotional Asian countries. However, foreign and requires submission of extensive platforms in the region, the Sarajevo Film nationals intending to work in Bosnia and documentation and could last several Festival. During the 15 years since its Hercegovina or to reside in Bosnia and months. launch, the Sarajevo Film Festival has Hercegovina for longer than 90 days within become a major hub for South Eastern a 6 month period, must obtain a temporary Europe’s film professionals, and has played residence permit. Q5. Can we bring our own a crucial role in the expansion of cinematic co-production in the region. It has also The Law on Foreigners of BiH, the Law Equipment? become a key destination for professionals on Employment of Foreigners in the from across Europe who are in search Federation Bosnia and Herzegovina, Law of talent and co-production possibilities, on Employment of Foreign Citizens and Bosnian and Herzegovinian customs or who simply wish to obtain in-depth Stateless Persons of Republic of Srpska legislation is not yet fully harmonised knowledge about production opportunities and the Law on Employment of Foreigners with relevant EU legislation, meaning that in this dynamic region. of Brčko District regulate foreign citizens Bosnia and Herzegovina has yet to finalise residing and working in the country. procedures to ratify its participation in the EU’s 2020 customs and fiscal program. The work and temporary residence of In general, non-commercial items intended foreign film workers is regulated depending for personal use are exempt from customs on the duration of the stay in Bosnia and duties and VAT, but professional equipment Herzegovina, according to the following must be reported to customs officials. distinctions: Foreign citizens can enter Bosnia and Herzegovina with up to EUR 5000 without notifying customs officials. If the amount of cash or checks exceeds EUR 5000, the foreigner must report it to the officials.
4 Sector specific regulations allow for the In case the foreign production or the Austro Hungarian Monarchy. Long years temporary admission of certain goods entertainment investor decides to establish a of war followed, from WWI to the Yugoslav into the territory of BiH. This means that local company of their own, the first choice wars in the 1990’s. The diversity and imported goods for the purpose of filming would usually be a limited liability company cultural exchange is also evident in social can be partially or fully relieved from (LLC). The minimal capital required in norms, religious and cultural festivities, customs duties if such goods will be re-exported this case is EUR 1,000 in the Federation of music, art, and cuisine. within 24 months of important and remain Bosnia and Herzegovina or EUR 0.50 in the in the same condition aside from normal Republic of Srpska and it may consist of money Climate depreciation due to regular use. or “in kind” contributions (e.g. equipment, In terms of climate, Bosnia and Herzegovina goods, know-how etc.). has a moderate continental climate, marked Bosnia and Herzegovina is a signatory party by hot summers and cold, snowy winters. to the Convention on Temporary Admission Alternatively, a branch office can be set up The Herzegovina region in the south of from 26 June 1990, which allows nationals in either entity, and will be considered as an the country, has more of a Mediterranean of other signatory countries to use the organisational part of the parent company. climate. benefits of ATA Carnet. Therefore, all contracts concluded by the This international document replaces branch office with third parties will be Business national customs documents and regular considered as contracts concluded by the BiH offers opportunities to well-prepared procedures for the temporary import of goods, founder, with the founder being fully liable and persistent exporters and investors. including customs duties. The validity of for the branch’s obligations. The country is open to foreign investment, this document cannot exceed one year. offers a liberal trade regime, and is richly Finally, certain productions may opt to endowed with natural resources. Many establish a representative office. projects stem from the involvement and While local companies or branches of support of development banks, the World Q6. Do I Have to Establish foreign companies can undertake business Bank, the European Union, activities in Bosnia and Herzegovina, and other international donors. a Local Company? note that representative offices are usually The Business Excellence Area represents established for conducting marketing and a development initiative between the promotional activities only. Municipalities of Teslic, Tesanj and Zepce, Having some form of direct local presence and was ranked as “Top 10” of the Southern or a production partner is required under European Regions in the category of best local rules in order to qualify for funding. European investment locations in terms of Consequently, foreign film productions and Q7. Anything Else? cost efficiency in a recent competition of filmmakers that are interested in setting up European cities and regions in 2014/15. their business in Bosnia and Herzegovina have the option to establish themselves Locations Transportation either directly through a local entity or The Association of Filmmakers in BiH Four international airports operate in Bosnia indirectly in cooperation with a local has published a location guide for Bosnia and Herzegovina (Sarajevo, Banja Luka, production company. Setting up a business and Herzegovina presenting the four Mostar and Tuzla). Bosnia and Herzegovina in Bosnia and Herzegovina depends on the geographical regions where most of the is also connected by rail with Croatia, needs and plans of the foreign investor, as filmmaking in the past ten years has taken Montenegro and Serbia, while roads lead to the establishment of a company is regulated place. These regions are centered around Croatia, Serbia and Montenegro. on the entity level. The decision of where four cities: Banja Luka, Mostar, Goražde to set up a company in order to produce and Sarajevo. Credits a film in Bosnia and Herzegovina has an Bosnia & Herzegovina has been credited impact on access to funding since some Culture as the location for a number of major funding mechanisms require funds to be Bosnia and Herzegovina’s colourful past international productions such as spent in a particular entity of the country. is evident in its centuries-old architectural The Whistleblower, The Hunting Party, Nevertheless, streamlined cooperation can marvels, art scene and cuisine. No Man’s Land, Twice Born, just to name a few. be expected due to the fact that many of Modern-day Bosnia and Herzegovina local production companies already have is a product of an interesting cultural, experience in working with international political, and social story. It started with the productions. emergence of Illyrian civilizations, which evolved into the Bosnian Kingdom. The kingdom eventually became an annexation of the Ottoman Empire and later,
02 BOSNIA & HERZEGOVINA Q1. Any Incentives? qualified costs, excluding VAT. These costs 03 include the costs of the Croatian film crew and the cost of goods and services incurred 20% Cash Rebate in Croatia. Croatia The Production Incentive Programme, which has been available since 2012, The applicant should secure at least 70% is financed by the Croatian state budget and of the costs that will be used for production is granted by the Croatian Audio Visual in Croatia, and the production crew should Centre. Following Croatia’s EU accession, be made up of at least 30-50% Croatian the European Commission prolonged the (EEA) citizens. Also, certain minimum incentive program until the end of 2019. costs must be incurred in order for the rebate to be granted. They amount to EUR An applicant for the rebate can be an entity 250,000 for feature films, EUR 40,000 for registered in Croatia (or a Croatian branch documentaries and approximately EUR of a foreign entity) and must: 70,000 for animated films.
• produce the feature film, animated film, Rebates are given in the maximum amount documentary or television drama/series of EUR 500,000, unless the total costs entirely or at least partially in Croatia exceed EUR 2.5 million, in which case Why Film in Croatia? Croatia, as the newest and must hold the role of producer, producers may apply for an increased rebate. member of the European Union, may be small co-producer or be a production service In exceptional cases, a maximum of 80% in size, but has a lot to offer the filmmaking company to the film; of the overall budget may be co-financed industry. It has natural, unspoiled beauty with with state aid, however, in general, the remarkable locations of different varieties, • hold the script copyright; incentive sums from the Croatian state aid including 6,278 km of coastline with 1,244 and other member countries of the European islands. Croatia also has proven local talents, • present evidence that within three years Economic Area do not exceed 50% of the a vibrant film industry and a number of preceding the application, the applicant overall budget of the audio-visual piece,or 60% production companies with an exceptional has produced at least one feature film or in case of cross-border co-productions record in the international filmmaking industry television piece that was commercially financed by at least two EU member states. and at international film festivals. Located distributed in cinemas, on television or in the heart of South Eastern Europe, it is at least one international film/television The complete application must be submitted easily accessible by land from other important festival; and to the Croatian Audio Visual Centre at filmmaking centers such as Vienna, Budapest, least 30 days prior to the start of principal Munich and Prague, as well as by air or water • present an estimate of the completed photography. The piece must pass a from a dozen of other major international overall production budget. qualification test and acquire 12 out of 34 cities. points in order to qualify. The qualification Croatian incentives for the production of film Producers of feature films, animated films, test assesses the cultural value of the piece and television programs in the form of cash documentaries, TV drama and TV series are and contribution of the Croatian production rebates, competitive prices and flexible teams eligible to receive the rebate, provided that and human resources throughout the entire ensure that filming on location in Croatia is the pieces are intended for public broadcast filming project. cost effective and smoothly organised. This has and distribution, while commercials, reality been confirmed by successful cooperation with TV, game shows, and soap operas are All kinds of production services may be the producers of highly popular productions, excluded from the rebate program. supported in Croatia, including location including Game of Thrones and Star Wars, scouting, scheduling, budgeting, casting and which have been filmed in different locations in The rebate program is administered on a crew. Croatia, mostly on the Adriatic coast. first-come first serve basis, and the rebates Quality of services, low production costs and a are paid directly to the applicant’s Croatian Apart from this production incentive, a film very professional and competitive labor force bank account, amounting to 20% of all project with international partners can also makes Croatia is attractive to filmmakers. The benefit from the selective Minority average gross salary in 2016 is approximately Official name of country Republic of Croatia EUR 1000, while the minimum gross salary is EUR 400. Population 4 225 300 The VAT is set at 25% for all sales of goods GDP in EUR (per capita) € 10,162.00 and services, including imports, except for Film suporting institutions (public) Croatian Audiovisual Centre, City of Zagreb, sales and import which is taxed at a lower City of Rijeka, City of Split preferential rate of 13% (e.g. for hotels and Public funding available in EUR 9 million EUR catering). Average production budget EUR 1 milion EUR 6 all information in the table provided by Sarajevo Film Festival Co-production Scheme that provides Depending on the location, such permits Q5. Can We Bring Our funding for projects originating outside of are obtained from relevant municipalities, Croatia but with Croatian participation. road companies, national parks, various Own Equipment? The Croatian Audio Visual Centre publishes state and city institutes for the protection a call with four annual submission deadlines of monuments and cultural heritage, and for films which may qualify as official private owners (i.e. natural persons or legal Croatian customs legislation is harmonised co-productions, either under bilateral entities) should the filming take place on almost entirely with relevant EU legislation. treaties or the European Convention on private property. Non-commercial items in the value of Cinematographic Co-production. approx. EUR 5,000 per individual in sea and air traffic, and EUR 3,000 in other means of transportation, intended for personal Q4. What About My Crew? use are exempt from customs duties and Q2. Who Will Support Me? VAT. However, professional equipment and devices have to be reported to customs Foreign nationals of EU member countries, officials. Foreign citizens can enter Croatia The Law on Audio-visual Activities1, EEA, as well as United States, Australia 2 with EUR 10,000 without notifying customs the Law on Copyright and Related Rights and Canada, do not need to obtain visas for officials. If the amount of cash or checks and accompanying secondary legislation business or tourist stays that are up to 90 exceeds EUR 10,000, the foreigner must regulate film production Croatia. days within a 6 months period. However, report it to customs officials. The Law on Audio-visual Activities sets foreign nationals intending to work or reside out the general framework for encouraging in Croatia for longer than 90 days within Sector specific regulations allow for the cinematography, the manner of exercising a 6 month period must obtain a temporary temporary admission of certain goods into public interest in cinema, and other issues of residence and work permit. The permit is the territory of Croatia. This means that importance for performing cinematographic issued by the Croatian Ministry of Internal imported goods for the purpose of filming activities, whereas the Law on Copyright Affairs and enables a foreign national can be partially or fully relieved from customs and Related Rights covers all the questions to leave and return to Croatia without duties if such goods are re-exportated within related to rights of authorship and related restriction. 24 months of import and have remained rights such as the rights of performers. in the same condition, aside from normal There are certain exceptions to this rule, depreciation due to regular use. The Croatian Audio Visual Centre (HAVC)3 including the case of foreigners who reside acts as a first stop service for all key in Croatia for less than 60 days within a Croatia is a signatory party to the questions that a foreign production company calendar year and who personally perform Convention on Temporary Admission may have about filming in Croatia. temporary artistic, culture or other similar from 26 June 1990, which allows nationals activities, as well as persons who perform of other signatory countries to use the accompanying technical or organisational benefits of ATA Carnet. This international Q3. Location Permits? activities. Such individuals are only document replaces the national customs required to obtain a work application documents and regular procedures for the certificate. temporary import of goods, including the customs duties thus enabling free transport Special permits are not required to film The procedure of obtaining a temporary in Croatia, but producers are required to of equipment without additional costs or residency and work permit usually takes paperwork. The validity of this document register the shooting with the Croatian between one to two months. Audio visual Centre by filing a standardised cannot exceed one year. filming registration form. Also, in order to 4 The Law on Foreigners regulates the stay Film production companies are also eligible film at a specific location, producers need to and permitting requirements for foreign obtain adequate location permits. for VAT refunds for locally purchased and nationals involved in film production in rented equipment, for amounts in excess of For any type of location in Croatia, be it Croatia. public roads, bridges, streets, national parks, approximately EUR 100. Foreign nationals protected monuments and structures, and must claim this tax refund within six months Additionally, a taxpayer who earns revenue of the receipt issue date. other, specific permits need to be obtained in Croatia may pay personal income tax in prior to shooting. another country and be exempt from taxes in Croatia provided there is a Double Taxation Treaty with his/her country of residence.
1 Official Gazette of the Republic of Croatia nos. 76/2007 and 90/2011. 2 Official Gazette of the Republic of Croatia nos. 167/2003, 79/2007, 125/2011, 80/2011, 141/2013 and 127/2014. 3 Croatian Audio Visual Centre website: http://www.havc.hr/eng/ 4 Published in the Official Gazette of the Republic of Croatia no. 97/2008. 03 CROATIA Q6. Do I Have to Establish Alternatively, legal entities from countries Transportation that are not members of the EU or EEA can The main form of transportation is via air, a Local Company? set up a representative office. However, although Croatia is easily accessile by land a representative office does not have the and sea as well. International air traffic goes status of a separate legal entity and is through seven airports - Zagreb, Zadar, Having some form of direct local presence considered as an organisational part of Split, Dubrovnik, Rijeka, Osijek and Pula. or a local production partner is required in the foreign company with the purpose of Maritime traffic goes through the ports of order to qualify for the Government awarded representation on the Croatian market. Rijeka, Ploče, Split, Zadar, Dubrovnik, Hvar cash rebate in Croatia. Foreign film productions As such, it is usually set up to conduct and Korčula. Croatia’s railway system offers and filmmakers that are interested in logistical support for the foreign company direct connections with Slovenia, Hungary, setting up their business in Croatia have and the investigation of the market in Italy, Austria, Switzerland, Germany, Bosnia the option to establish themselves either Croatia, performing only preliminary and and Herzegovina and Serbia, as well as directly through a local entity or indirectly preparatory work in connection with the transfer connections with almost all other in cooperation with a local production conclusion of contracts in Croatia. European countries. Croatia also has over company. Many successful projects have 1,400 km of motorways connecting the already been implemented in the country capital Zagreb to the rest of the country. based on smooth cooperation between an international production company and Q7. Anything Else? Credits Croatian producers. In recent years, Croatia has been credited In case the foreign production or as a prime location for major international entertainment investor decides to establish Locations and infrastructure productions such as Game of Thrones and a local entity of their own, the most Croatia offers a wide range of diverse Star Wars, as well as several television straightforward choice is to establish a architectural, cultural and natural locations. series such as Borgia, Christmas in the Sun, limited liability company (LLC), or a branch From beautiful costal landscapes to rural Jonathan Strange & Mr Norrell and Dig, office. Alternatively, a representative office areas with remote villages, from urban have all been produced in the country in the can also be established for specific purpose. city landscapes to forest and mountain past two years alone. ranges, and all of it located near the heart of An LLC is by far the most common Europe. With thousands of beautiful islands, corporate form present in Croatia. fortresses and medieval castles, Croatia The minimum share capital required for can accommodate a wide spectre of artistic registration is approximately EUR 3,000, expressions. and may partially be contributed “in kind” through equipment, goods, know-how, etc. Climate Croatia’s climate is mild continental climate Setting up a branch office is also possible with inland cold snowy winters and hot but is subject to limitations. A branch dry summers. Spring and fall, with their office does not have the status of a separate tremendous expressions in the nature, tend legal entity and is considered to be an to provide filmmakers with magnificent organisational part of the parent company, photography opportunities. acting in its name and for its account. Therefore, all contracts concluded by the branch office with third parties will be considered as contracts concluded by the parent company which remails fully liable for the branch’s obligations. The founders of the branch office are not legally required to contribute any monetary or in-kind contributions.
8 Q1. Any Incentives? a The MFA can fund up to 70% of the film’s 04 budget, provided that the financial aid does not exceed EUR 1,000,000; 20% Cash Rebate b The MFA can participate in the funding of Macedonia The Macedonian Film Agency (“MFA”) a debut film with up to 90% of the film’s offers incentives for both foreign and budget, provided that the financial aid domestic producers that intend to film in does not exceed EUR 400,000; Macedonia. After the wrap-up of a feature c The MFA can fund film projects of national film, documentary, animation, television interest with up to 90% of the film’s film or television series, producers are budget, providing no limitation regarding eligible for a cash rebate of the invested the total amount of the financial aid. funds for the film/television project. The refund can cover up to 20% of the eligible These thresholds depend on several other expenditures made in Macedonia for the conditions which must be fulfilled. At least making of the film and is granted only after 65% of the awarded funds have to be spent meeting certain conditions. in Macedonia and the MFA reserves the In order to qualify for the 20% cash rebate right to a portion of the net profit of the refund, the foreign production must enter film in the amount of 50% of the awarded into a co-production agreement, or an financial aid, in addition to the condition Why Film in Macedonia? Macedonia is a agreement for certain production services of the foreign producer must enter into a country at the cross-road between cultures with a Macedonian production company. co-production agreement with a Macedonian and nations in the Balkans. A variety of Furthermore, the Macedonian production production company. spectacular landscapes, ranging from company in question must have: (i) at least It should be noted that additional untouched nature to picturesque villages one produced or co-produced and publically requirements under relevant local rules also and cities, offer endless possibilities for displayed feature film; and (ii) invested at apply. Details on these procedures, developing a film project. The beautiful least EUR 100,000 in the designated film/ the relevant documentation and other mountains, rivers, lakes, waterfalls and television project, excluding funds obtained additional advice are available upon request. churches have been an inspiration for from other state support budgets. many artists and film-makers in the past, Eligible expenses include goods and and we expect this trend to grow in the services purchased in Macedonia, as well coming years. There are a number of local Q2. Who Will Support Me? as wages paid to local tax residents (both production companies, including those cast and crew) for services carried out offering visual effects and CGI/VFX post in Macedonia. The cash rebate is paid 1 production services, some of which have The Film Industry Law and accompanying upon completion of production, and the already attained significant experience in secondary legislation regulates the film submission of audited accounting reports working on reputable international projects. industry in Macedonia. The Film Industry and evidence that all legal requirements Due to low production costs and a very Law was the first to introduce different have been met. Several production competitive labour force, Macedonia is concepts for improving the film industry and companies have already received cash attractive to filmmakers from a multitude of culture in the country by offering incentives rebates under this new regime. angles. To better contextualise this fact, to filmmakers, and establishing reliable it should be noted that the average gross institutional infrastructure responsible for Additional Incentives salary in 2016 was EUR 500, while the achieving the planned goals. The MFA can also fund feature films, minimum salary was EUR 160. VAT is set short films, documentaries or animations at 18% for all sales of goods and services, Focused on the support and growth of the that are proven to be of national interest including imports, except for sales and film industry, the Macedonian Film Agency for Macedonia. The financial aid in these import which is taxed at a preferential rate (“MFA”) has a key role in enforcing the cases is determined in accordance with the of 5% (e.g. for hotel and catering). Personal sector specific regulation and in helping following, previously established thresholds: and corporate income tax are set at 10% along with very favourable double taxation Official name of country Republic of Macedonia treaties with dozens of countries worldwide (some of them providing 0% withholding Population 2,02 million tax). Low social security contributions for GDP in EUR (per capita) € 4,357.00 employees amount to only 27% of gross salaries. Film suporting institutions (public) Macedonian Film Agency Public funding available in EUR 7,000,000 Average production budget EUR approx. 5.000.000
₁ Published in the Official Gazette of the Republic of Macedonia nos. 82/2013, 18/2014, 44/2014, 129/2015, 152/2015 and 39/2016. all information in the table provided by Sarajevo Film Festival ₂ An administrative body in the scope of the Ministry of Culture, authorized to manage the cultural heritage of Macedonia and all related issues regarding its exploitation. 04 MACEDONIA producers to carry out their film projects. Q3. A License to Film? The requirements for work and temporary The MFA assists during the whole process residency of foreign film workers depends of implementation of a film/television on their duration of the stay in Macedonia, project, from its financing to promotion. Producers must obtain a location permit to according to the following distinctions: film in Macedonia. The MFA also promotes Macedonian • Stay up to 7 days: Filmmakers need to films and co-productions at all major film Depending on the location, such permits obtain an approval of their stay from the festivals and markets and administers the are obtained from the Administration of Ministry of Culture and register their Macedonian Film Production incentive Cultural Heritage, relevant municipalities, work at the Employment Agency. Foreign programme, aimed to encourage and or private owners (i.e. natural persons or filmmakers cannot work in Macedonia on stimulate investments in film/television legal entities) if filming is to take place this basis for more than 30 days per year. projects. on private property. For filming in certain Depending on the needs of international locations such as public roads, squares and • Stay up to 90 days: Based on an agreement filmmakers, the MFA provides support urban areas, producers need to consult the with a Macedonian legal entity (e.g. local with respect to the communication with Ministry of Interior and obtain relevant production company), foreign workers local companies and authorities, obtaining permits from the police. Filming in forests can obtain a work permit in Macedonia, location permits, fulfilling the legal and natural parks is subject to permits issued as well as a temporary residence permit on requirements for shooting and securing by relevant public authorities. Governing the grounds of individual provision of financial support. The MFA’s annual budget bodies or private owners have to right to services to a local entity. In exceptional for supporting cinematography in 2015 was ask for adequate remuneration for their cases, including issuance of work permits EUR 6 million. participation in the filming process. for cultural workers, the work permit in such cases can be issued for a period of up to The Ministry of Culture is in charge one year; of conducting cultural policy and the • Stay for more than 90 days, up to 1 year: implementation of cinematography Q4. What About my Crew? Foreign film workers have to obtain an strategies in the country. The Ministry employment permit and be employed at is also actively involved in and supports a local Macedonian company in order to more significant film projects filmed Foreign citizens need to have a visa carry out professional activities. in Macedonia, assisting with the for entering Macedonia. However, it communication with its internal bodies and is important to point out that no visa is The issuance of a work permit or an authorities that are responsible for awarding required in case of business or tourist stays employment permit is strictly limited by filming permits on specific locations that are up to 90 days long for the citizens quotas for certain categories of foreign (e.g. the Administration of Cultural Heritage2, of US and EU. Stays for a period of time workers that are adopted by the Macedonian theatres and other public cultural venues, longer than 90 days require the issuance Government annually. Foreign film workers intragovernmental coordination, etc.). of an appropriate visa. The procedures can obtain a work/employment permit as involved in obtaining visas, work and long as: (i) the annual quota has not been residency permits for foreigners involve filled, and (ii) there is no adequate substitute submission of extensive documentation and Macedonian worker in the records of the could last between 3 to 4 months. Employment Agency that could perform the respective work. The Law on Work and Employment of Foreigners3 regulates the stay and work engagement requirements of foreign citizens in Macedonia. No working permit is required for foreigners who are filming on a temporary basis.
₃ Published in the Official Gazette of the Republic of Macedonia nos. 82/2013, 18/2014 and 44/2014. 10 Q5. Can We Bring Our Q6. Do I Have to Establish Q7. Anything Else? Own Equipment? a Local Company? Culture and Climate There are over 1,000 churches and Macedonian customs legislation is As already seen, having a local company or monasteries in Macedonia, most of them harmonised to a great extent with the a production partner can be required under several centuries old, making the country relevant EU legislation. Non-commercial local rules (e.g. in order to apply and receive one of the most attractive destinations for items intended for personal use are incentives). Foreign film productions and cultural tourism in the region. exempt from customs duties and VAT, filmmakers that are interested in setting up The Mediterranean climate makes the but professional equipment and devices their business in Macedonia have the option location even more attractive, as 280 sunny have to be reported to customs officials. to establish a local entity or cooperate with days per year make the filming easy for Foreign citizens can enter Macedonia with local productions. The most convenient way most of filmmakers’ needs. EUR 10,000 without notifying the customs of setting up the business in Macedonia officials. If the amount of cash or checks depends on the needs and plans of the Business exceeds EUR 10,000, the foreigner must foreign investor, however, most opt to work Macedonia has cut down the costs and report it to the officials. with local production companies. time for registration of a business and has improved business environment significantly The sector specific regulation allows for In case the foreign production or over the past years. According to the World a temporary admission of certain goods entertainment investor decides to establish Bank Group, Macedonia ranks second best on the territory of Macedonia. This means a local entity of their own, the first choice in the world for ease of starting a business. that the imported goods for the purpose of would usually be a limited liability company Registration procedures of a new company filming can be partially or fully relieved (LLC). The minimal capital required in this can be completed within a day, while the from customs duties if such goods are either case is EUR 5,000 and it may consist of flat tax rate at 10% is one of the lowest in intended for re-export within a specified money or “in kind” (e.g. equipment, goods, Europe. period or have not undergone any changes, know-how etc.). aside from normal depreciation due to Transportation regular use. The goods subject of temporary Alternatively, a branch office can be set up, Two international airports operate in admission procedure must be exported in a and it will be considered as an organisational Macedonia, one in the capital of Skopje specific period which cannot be longer than part of the parent company. Therefore, all (23 km from the city centre) and one in 24 months. contracts concluded by the branch office Ohrid (10km from the city centre). with third parties will be considered as Skopje is connected 34 destinations in Macedonia is a signatory party to the contracts concluded by the founder, with the Europe and the Middle East via direct Convention on Temporary Admission from founder being fully liable for the branch’s flights. Macedonia is also connected by train 26 June 1990, which allows nationals of obligations. The founders of the branch with Serbia and Greece, while roads lead other signatory countries to use the benefits office are not legally required to contribute to Albania, Bulgaria, Greece, Kosovo and of ATA Carnet. This international document any monetary or in-kind contribution. Serbia. Thessaloniki port in Greece is 60km replaces the national customs documents from Macedonian border and approximately and regular procedures for the temporary Finally, setting up a representative office is 200km from the capital Skopje. import of goods, including the customs also an option for those who find it to suit duties. The validity of this document cannot their needs. However, it should be taken into Credits exceed one year. consideration that while a foreign company Macedonia has been featured as the location can act and undertake business activities in for major international productions such as Macedonia via its branch, this cannot be the 12 Monkeys (TV Show), The Peacemaker, case through an established representative An Idiot Abroad (TV Show), Welcome to office, since they are usually used for Sarajevo, Ulysses’ Gaze, just to name a few. marketing and promotion purposes only.
04 MACEDONIA Due to quality services, low production costs 1 the funds spent for the realisation of a 05 and a very professional and competitive cinematographic work in Montenegro labour force, Montenegro is attractive to are not provided from the budget of filmmakers for many reasons. The average Montenegro or the MFC and are not less Montenegro gross salary in 2016 was EUR 500, while the than EUR 100,000; minimum salary was EUR 190, making film production in Montenegro cost efficient. The 2 all taxes, contributions and other fiscal VAT is set at 19% for all sales of goods and obligations prescribed by law have been services, including imports, except for sales previously settled in Montenegro; and import which is taxed at a preferential rate of 7% (e.g. for hotels and catering). 3 there are no bankruptcy or liquidation Personal and corporate income tax are set proceedings against the producer; and at 9%, along with very favourable double taxation treaties with dozens of countries 4 a producer or co-producer has at least one worldwide (some of them providing 0% feature film that was shown to the public. withholding tax). Low social security contributions for The funds intended for the cash rebate are employees amount to only 34% of gross salaries. provided from the budget of Montenegrin Government but do not have the qualities of a refund in terms of tax regulations. Rather, cash rebates for the film industry Q1. Any Incentives? are paid out in accordance with the rules on Montenegro, the youngest country in state aid. Europe, gained its independence in 2006. It has inherited a part of the Yugoslavian 20% Cash Rebate The right to a cash rebate for a part of legacy in film making, having hosted The Montenegrin Film Centre (“MFC”) the funds spent in film production can be Sylvester Stallone, Sophia Loren, Nicholas offers incentives for both foreign and acquired by a producer for the production Lyndhurst, Brad Pitt and Angelina Jolie. domestic producers that intend to film in of live-action, animated and documentary Aside from its filmmaking legacy, modern Montenegro. After the wrap-up of a feature films, television films and series, which are day Montenegro offers an accommodating film, documentary, animation, television fully or partially produced in Montenegro climate, the beautiful Adriatic Sea and many film or television series, the producer and which are intended for public breath-taking landscapes and beaches. has the possibility to get a cash rebate of presentation. The producer may be entitled Montenegro is a small Mediterranean the invested funds for the film/television to a rebate of 20% of the total production country with a rich architectural and project. The refund can cover up to 20% of cost of the cinematographic work in cultural heritage, diverse landscapes and eligible expenditures spent in Montenegro Montenegro, excluding VAT. climates, and a well-preserved natural for the making of the film and is granted The cash rebate is paid upon completion of environment. Situated in the heart of the after meeting certain conditions. The right to production and the submission of audited Balkans, with access to sea, it is easily a cash rebate may be granted to the producer accounting reports and evidence that all accessible by land, air or water from a of a cinematographic work, a co-producer or legal requirements have been met. The cash dozen major international cities and ports. production company that performs a service, rebate system has already been put into provided that: practice with rebates having already been Naturally well-suited for the development received by several producers. of all kinds of tourism, Montenegro has focused its recent economic development efforts on becoming an elite tourist destination. Montenegro is considered to be one of the Europe’s fastest-growing tourist destinations. In 2007, over a million tourists visited Montenegro, amounting to some Official name of country Montenegro 7.3 million overnight stays (23% increase, Population 620 02 compared to 2006). This accounted for some EUR 480 million in tourism revenue in GDP in EUR (per capita) € 6.45 2007 (39% increase, compared to previous Film suporting institutions (public) Ministry Culture of Montenegro year). In 2015 tourism realised 1.5 million Public funding available in EUR € 420.00 arrivals. Average production budget EUR n/a ₁ Published in the “Official Gazette of Montenegro”, no. 42/2015. all information in the table provided by Sarajevo Film Festival
12 Q2. Who Will Support Me? Q3. A License to Film? The work and temporary residence of foreign film workers is regulated depending on the duration of the stay in Montenegro, The Law on Cinematography1 regulates the A producer must obtain a location permit according to the following distinctions: film industry in Montenegro. to film in Montenegro. Depending on the This law was the first to introduce location, such permits are obtained from • Stay for more than 90 days, up to 1 incentives to filmmakers, while at the same the Ministry of Culture and the relevant year: Foreign film workers must obtain time establishing a reliable institutional municipalities or private owners (i.e. natural temporary residence and work permits framework for film production in the country. persons or legal entities) if filming is to and be employed in order to carry out take place on private property. For filming professional activities, and regulate their Focused on the support and growth of the in certain locations such as public roads, temporary residence in Montenegro on an film industry, the Montenegrin Ministry squares and urban areas, producers need to annual basis. of Culture and MFC play key roles in consult the Ministry of Interior and obtain implementing the legal framework and relevant permits from the police. Filming The issuance of a temporary residence and helping producers to carry out their film in forests and natural parks is subject to work permit is strictly limited by quotas for projects. The MFC and the Ministry assist permits issued by relevant public authorities certain categories of foreign workers that are with the whole process of implementation of responsible for these areas. The governing adopted by the Montenegrin Government a film/television project, from its financing bodies or private owners have the right to annually. Foreign film workers can obtain to promotion. ask for adequate remuneration for their temporary residency and work permits as participation in the filming process. long as the annual quota has not been filled. The Ministry and the MFC also promote Montenegrin films and co-productions at all major film festivals and markets and administer the incentive programme, aimed Q4. What About My Crew? to encourage and stimulate investments in film/television projects. Depending on their country of residence, Depending on the needs of the international foreign citizens need to have a visa to enter filmmakers, these authorities provide Montenegro. No visa is required, however, support in communication with local in case of business or tourist stays that are companies and authorities, obtaining up to 90 days long for the citizens of the US location permits, meeting the legal and the EU. Work and residency permits for requirements for shooting and securing foreigners are obtained by submitting the financial support. The Ministry’s annual required documentation, a procedure which budget for supporting cinematography in can last between one to two months. 2015 was approximately EUR 2.3 million. Foreign citizens involved in film production The Ministry of Culture is in charge must meet the requirements set out in the 2 of conducting cultural policy and the Law on Foreigners . implementation of cinematography strategies in the country. The Ministry is also actively involved and supports more significant film projects filmed in Montenegro, through assisting with the communication with its internal bodies and authorities that are responsible for awarding filming permits on specific locations.
₂ Published in the “Official Gazette of Montenegro”, nos. 56/2014, 28/2015 and 16/2016. 05 MONTENEGRO Q5. Can We Bring Our Q6. Do I Have to Establish An LLC is by far the most common corporate form present in Montenegro. Own Equipment? a Local Company? The minimum share capital required for registration is EUR 1.00. Share capital may also be contributed “in kind” through The Montenegrin customs legislation is Having some form of direct local presence equipment, goods, know-how, etc. harmonised with the relevant EU legislation or a production partner is required to a great extent. Non-commercial items under local rules in order to qualify for Alternatively, a branch office may be set intended for personal use are exempt from the Government awarded cash rebate. up. A branch office does not have the status customs duties and VAT, but professional Consequently, foreign film productions of a separate legal entity and is considered equipment and devices have to be reported and filmmakers that are interested in to be an organisational part of the parent to customs officials. Foreign citizens setting up their business in Montenegro company, acting in its name and for its can enter Montenegro with EUR 10,000 have the option to establish themselves account. Therefore, all contracts concluded without notifying the customs officials. If in Montenegro either directly through a by the branch office with third parties will the amount of cash or checks exceeds EUR local entity or indirectly in cooperation be considered as contracts concluded by its 10,000, the foreigner must report it to the with a local production company. The most parent company and will be held fully liable officials. convenient way of setting up a business in for the branch’s obligations. The founders Montenegro really depends on the needs of the branch office are not legally required Sector specific regulations allow for the and plans of the foreign investor, although to contribute any monetary or in-kind temporary admission of certain goods into smooth cooperation can be expected due contribution. the territory of Montenegro. This means to the fact that many local production that imported goods for the purpose of companies have already versed themselves filming can be partially or fully relieved in working with international productions. from customs duties if such goods will be re-exported within a specified period and In case the foreign production or have remained in the same condition aside entertainment investor decides to establish from normal depreciation due to regular use. a local entity of their own, the most Goods subject to the temporary admission straightforward choice is either to establish a procedure must be exported within 24 limited liability company (LLC) or a branch months of import. office.
Montenegro is a signatory party to the Convention on Temporary Admission from 26 June 1990 which allows nationals of other signatory countries to use the benefits of ATA Carnet. This international document replaces the national customs documents and regular procedures for the temporary import of goods, including the customs duties. The validity of this document cannot exceed one year.
14 Q7. Anything Else? Business Credits Registering and establishing a business in Montenegro has been featured as the Montenegro is a relatively straightforward location for major international productions process. Montenegro has cut the costs such as The November Man, The Last Culture and time for the registration of a business Panthers (TV Show), The Brothers Bloom, There are over 800 churches and and improved its business environment Savior, The Dark Side of the Sun, just to monasteries in Montenegro, most of them significantly in recent years. The registration name a few. several centuries old, making the country procedure of a new company can be one of the most attractive destinations for completed within a few days, while the flat cultural tourism in the region. Over the tax rate at 9% is one of the lowest in Europe. centuries, these cultural treasures have remained despite the country’s turbulent Transportation history and changes to borders and ethnic Two international airports in Montenegro, composition. one in the capital of Podgorica (12 km from the city centre) and one in Tivat (2 km from Almost all economic activities in the city centre) connect Montenegro to many Montenegro are directed towards destinations in Europe and the Middle East. facilitating the development of tourism. Montenegro is also connected by train with The Government aims to attract Serbia, while roads lead to Croatia, Bosnia Greenfield investments to make the best and Herzegovina, Albania and Serbia. use of undeveloped parts of the coast, The Dubrovnik port is only 70 km from such as Jaz Beach, Velika Plaža, Ada Herceg Novi, a city on the northern coast Bojana and Buljarica, which offer great of the country. In addition, Montenegro has opportunities for filming. Such investments two international ports, in Bar and Kotor, could potentially reshape the appeal of both of which are connected to the Italian Montenegro to tourists, making it a highly ports of Bari and Ancona, along with other competitive destination for sustainable destinations in the Mediterranean. quality tourism. The Tourism Masterplan of Montenegro is also paving the way for a national development program for nature based tourism with a focus on hiking and biking involving the development of new infrastructure and services.
The south coastal region of Montenegro is considered one of the great new “discoveries” among world tourists. In January 2010, The New York Times ranked the Ulcinj South Coast of Montenegro, including Velika Plaza, Ada Bojana, and the Hotel Mediteran in Ulcinj, as among the “Top 31 Places to Go in 2010” as part of its worldwide ranking of tourism destinations.
05 MONTENEGRO Q1. Any Incentives? a The applicant can be a legal entity 06 registered in Serbia or abroad, however in practice local entities (production 20% cash rebate encourages investors to companies) usually conduct the relevant Serbia produce audiovisual works in Serbia procedures for receiving the cash rebates. The Serbian Ministry of Economy adopted a Decree on Film Incentives in mid-2015. b Minimum local expenditure amounts in The idea behind this Decree was to the Republic of Serbia in the following further support the Serbian economy by amounts must be met: directly encouraging domestic and foreign - EUR 300,000 for feature films, investments in the field of audiovisual television films and television series; works. Such a move directly impacted this - EUR 150,000 for animated film, audio particular industry by making Serbia one of and/or visual postproduction of an the most tempting filming destinations in the audio-visual work; region. - EUR 100,000 for special purpose films and television commercials, and It has been estimated that in the first year - EUR 50,000 for documentary films. alone, the incentives will attract up to EUR Why Film in Serbia? Serbia is a country that 60 million in direct foreign investment into c All taxes, contributions and other fiscal has inherited much of Yugoslavia’s legacy film production and its connected services. obligations prescribed by law must be in filmmaking and general film culture, settled. with visits of high profile actors such as Yul The incentives program provides for a 20% Brynner, Sophia Loren, Richard Burton, cash rebate on qualified Serbian expenditure d There can be no bankruptcy or liquidation Elisabeth Taylor and the likes who featured for feature films, TV series, animation films proceedings initiated against the applicant. in both local productions and international and visual effects, television commercials co-productions. In addition to its rich and documentaries. The costs that fall under Before the cash rebate is obtained, a contract filmmaking legacy, modern day Serbia the category of qualifying expenditure has to be signed with the Ministry of offers something completely new, a sort of pertain to the production of an audiovisual Economy. Once the production has been singularity and authenticity arising from work that has occurred and that has been completed, the applicant needs to conduct the tumultuous 90s, a multi ethnic and cross disbursed to legal or natural entities in the an independent audit and submit a request cultural background, an accommodating territory of the Republic of Serbia including for payment within 45 days from the date climate, as well as a plethora of purchased goods and provided services, use of completion of production. The rebate breathtaking natural landscapes. Nestled of locations, crew payments and royalties will then be paid out within 60 days from in the heart of South-Eastern Europe, it is to individuals who are residents of the reviewing the completed production reports easily accessible by land, air or water from Republic of Serbia, as well as to foreigners and financial information. a dozen major international cities and ports. who legally reside for at least one year in the territory of the Republic of Serbia. Since the Decree is still relatively new, local In terms of production, post-production practice in implementing the rebate system and services, a number of local production The prerequisites for a production company is in need of some improvement. companies, filming studios and equipment to be eligible to receive a cash rebate are as For instance, television commercial rental companies are available in Serbia to follows: producers are currently facing issues of make filming on location as cost effective meeting the required expenditure thresholds and as smooth as possible. per project in order to qualify for the rebate, thus leaving open the possibility for Due to the quality services, low production amendments in the future. costs and professional and competitive labour force, Serbia is attractive to filmmakers from a multitude of angles. To better contextualise this fact, it should be noted that the average gross salary in Official name of country Republic of Serbia 2016 is approximately EUR 490, while the Population 7.131.800 minimum salary is 1 EUR (net) per hour. The VAT is set at 20% for all sales of goods GDP in EUR (per capita) 4,672 and services, including imports, except for Film suporting institutions (public) Film Center Serbia; Secretariat for Culture sales and import which is taxed at a lower Autonomous Province of Vojvodina preferential rate of 10% (e.g. for hotels and Public funding available in EUR 1 800 000 catering). Average production budget EUR 500.000
16 all information in the table provided by Sarajevo Film Festival Q2. Who Will Support Me? Q3. Location Permits? For all other foreigners working in Serbia, once the temporary residence permit is approved, the local employer should apply The specific laws applicable to the film While general production permits are not to the National Employment Service (NES) industry are the Law on Cinematography1, required in Serbia, in order to film at a for the issuance of the work permit for the Law on Copyright and Related Rights2 specific location, producers need to obtain a the foreign national. A foreigner cannot and accompanying secondary legislation. location permit. This permitting requirement legally start to work on Serbian territory The Law on Cinematography covers applies to any type of location in Serbia, until he/she is provided with the adequate all matters related generally to the field be it public roads, bridges, streets, national work permit. The list of documents to be of cinematography and the performing parks, protected monuments and structures submitted to the NES in each case differs cinematographic activities, while the Law and others. depending on the type of work permit on Copyright and Related Rights covers required, i.e. the manner of the foreigner’s all issues related to rights of authorship Depending on the location, such permits are engagement in Serbia. and related rights such as the rights of obtained from the relevant municipalities, performers. road companies, national park companies, The procedure of obtaining temporary various state and city institutes for the residence and work permits usually takes The first stop service for all key questions protection of monuments and cultural somewhere between 1-2 months. that a foreign production company may heritage, or private owners (i.e. natural 4 have, such as incentives, costs, and persons or legal entities) if filming take The Law on Foreigners regulates the length permitting, is the Serbia Film Commission place on a private property. of stay and work permit requirements for (SFC)3. foreign nationals involved in film production in Serbia. The SFC has been active since 2009, working as the independent non-profit Q4. What About My Crew? Additionally, a taxpayer who earns revenue association of the Serbian film industry. in Serbia may pay personal income tax Its goal is to promote and develop in another country and be exempted from Serbia as a cost-effective, high-quality, Foreign nationals of EU member countries, taxes in Serbia provided there is a Double competitive destination for international United States, some South-American and Taxation Treaty with his/her country of filmmaking, and to provide information Asian countries, do not require visas for residence. and support to international filmmakers business or tourist stays that are up to 90 who are considering using Serbia for their days within a 6 months period. However, productions. More information on the SFC can foreign nationals intending to work in Serbia Q5. Can We Bring Our be found here: www.filminserbia.com or to reside in Serbia for a period of longer than 90 days within a 6 month period must Own Equipment? Another body of relevance is the Film obtain a temporary residence permit. Center Serbia, a governmental institution The temporary residence permit is issued of national importance that provides by the Ministry of Internal Affairs and it The Serbian customs legislation is professional assistance to cinematographers enables a foreign national to leave and to harmonised to a great extent with the in Serbia. Film Center Serbia performs a return to Serbia without any restrictions. relevant EU legislation. Non-commercial number of activities such as the support to items intended for personal use are exempt the filmmakers and the conduct of Law on As a general rule, every foreigner who from customs duties and the VAT, but Cinematography, primarily considering the exercises the right to work in Serbia is professional equipment and devices have national interests of the Republic of Serbia obliged to obtain a work permit. There are to be reported to customs officials. Foreign in this field. More information on the Film certain exceptions to this rule, including the citizens can enter Serbia with EUR 10,000 Center Serbia can be found here: case when a foreigner resides in Serbia for without notifying customs officials. If the http://www.fcs.rs/o-fcs/o-nama less than 90 days within 6 a month period amount of cash or checks exceeds EUR and who personally performs temporary 10,000, the foreigner must report it to artistic, cultural or other similar activities, officials. or when a person performs accompanying technical or organisational activities. Such persons are not required to obtain a work permit when they reside in Serbia for less than 90 days.
₁ Official Gazette of the Republic of Serbia nos. 99/2011, 2/2012 - amended. and 46/2014 – Constitutional decision. ₂ Official Gazette of the Republic of Serbia nos. 104/2009, 99/2011, 119/2012 and 29/2016 - Constitutional decision. ₃ Serbia Film Commission website: http://www.filminserbia.com/ ₄ Published in the Official Gazette of the Republic of Serbia no. 97/2008. 06 SERBIA The sector specific regulation allows for In case the foreign production or Q7. Anything Else? the temporary admission of certain goods entertainment investor decides to establish into the territory of Serbia. This means that a local entity of their own, the most goods imported for the purpose of filming straightforward choice would be to either Location and infrastructure can be partially or fully relieved from establish a limited liability company (LLC), Serbia offers a wide range of diverse customs duties if such goods are either or a branch office. Alternatively, there is architectural, cultural and natural locations. intended for re-export within a specified the possibility of setting up a representative From rural areas and remote villages period or have gone through no change office as well, for limited and specific to urban city landscapes, to forests and except normal depreciation due to regular purposes. mountain ranges and unbelievable river use. The goods subject to the temporary canyons, it is a one of a kind jewel located admission procedure must then be exported An LLC is by far the most common in the heart of the Balkan Peninsula. With its in a specific period which cannot be longer corporate form present in Serbia. fortresses, medieval castles and Byzantine than 24 months. The minimum share capital required for monasteries and churches, Serbia can be registration is RSD 100 (approximately set the scene to a wide spectrum of artistic Serbia is a signatory party to the Convention EUR 1), and does not have to be paid prior expressions. on Temporary Admission from 26 June to registration, but within five years after the 1990, which allows nationals of other execution of the founding act. Share capital Climate signatory countries to use the benefits of may also be contributed “in kind” through Serbia has a mild continental climate with ATA Carnet. This international document equipment, goods, know-how, etc. cold snowy winters and hot dry summers. replaces the national customs documents Spring and fall tend to disappear over the and regular procedures for the temporary Setting up a branch office is also possible, years and are usually characterised by import of goods, including customs duties, subject to certain limitations. A branch moderate annual levels of precipitation. thus enabling free transport of equipment without office does not have the status of a separate additional costs or paperwork.The validity legal entity and is considered to be an Transportation of this document cannot exceed one year. organizational part of the parent company, The main form of transportation is via air, acting in its name and for its account. although Serbia is easily reachable by land Film production companies are also eligible Therefore, all contracts concluded by the as well, since it borders four EU countries. for a VAT refund on locally purchased branch office with third parties will be One major airport operates in Serbia. and rented equipment. This refund can considered as contracts concluded by its Nikola Tesla International Airport is located be obtained within 45 days from the parent company, which will be held fully in Belgrade and is reachable in a maxim date of filing of the request to the Tax liable for the branch’s obligations. of up to 3-5 hours from major European, Administration. The founders of the branch office are not Middle East and African cities. On average, legally required to contribute any monetary it operates over 850 flights per week and or in-kind contribution. services over 3.5 million passengers per year. Q6. Do I Have to Establish Alternatively, there is also the possibility of a Local Company? setting up a representative office for those Credits who find it suits their needs. However, it Serbia has been credited as the location for should be taken into consideration that major international productions such as The a representative office does not have the Although it is not specifically required November Man, 3 Days to Kill, Coriolanus, status of a separate legal entity and is in order to qualify for the available cash The Raven, Lockout, Brothers Bloom and considered as an organisational part of rebates, having some form of direct local Titanic: Blood and Steel (TV Show), just to the foreign company with the purpose of presence or a production partner is usually name a few. representing that company on the Serbian the case. Foreign film productions and market. As such, it is usually set up to filmmakers that are interested in setting conduct logistical support for the foreign up their business in Serbia have the option company and investigation of the market to establish themselves in Serbia either in Serbia, performing only preliminary and directly through a local entity or indirectly preparatory work in connection with the in cooperation with a local production conclusion of contracts in the country. company. The most convenient way of setting up the business in Serbia really depends on the needs and plans of the foreign investor. Given the history of the industry in Serbia, local production companies have extensive experience in working with international productions.
18 07 Q1. Any Incentives? Q2. Who Will Support Me?
Cash Rebate The Slovenian Film Centre Act1 provides for Slovenia The Slovenian Film Centre (“SFC”) recently the promotion of Slovenian filming locations introduced a support scheme for foreign in line with the Slovenian Culture Strategy producers involving a cash rebate in the for the period between 2014 and 2017. amount of 25% on all eligible expenditures The strategy is meant to showcase used for production of films and audio- Slovenia’s focus on supporting and growing visual works. Even though eligible persons its film industry – something that has always are limited to legal or natural persons been a part of the national heritage. residing in one of the EU member states, the proposal which is already in In order to facilitate filmmaking in Slovenia parliamentary deliberation and is expected for foreigners, the SFC established the to be adopted over the summer will Slovenian Film Commission which Why Film in Slovenia? Slovenia is a small improve Slovenia’s competitiveness in the operates under the auspices of the SFC. country with diverse geographic backdrops. filmmaking sector and make it an even more The Slovenian Film Commission serves as You can find Alpine peaks, Mediterranean- desirable location for foreign filmmakers. an entry point for foreign filmmakers and coastline, meadows, hills, pine forests, lakes, Currently, the proposal provides for several helps them in communicating with local rivers, beaches, castles and picturesque criteria for eligibility of the cash rebates, companies and authorities, meeting the legal villages within a two-hour drive of including the cultural importance of the film requirements for shooting in Slovenia and in Ljubljana – the country’s capital. Not only for Slovenia or members of the EU, the use obtaining financial support. does Slovenia offer high peaks in the heart of production or postproduction capacities of the Alps, such as Mount Triglav (2,864 in Slovenia, and collaboration with local The SFC also cooperates with different metres) which is a national symbol, but also providers in the filmmaking sector. stakeholders in the organisation of the a specific part of the Pannonian landscape, Slovenian Film Festival –a traditional event characterised by vineyards and vast plains Additional Incentives that attracts many Slovenian and foreign as well as a Karst landscape with intriguing While this form of support scheme is filmmakers, as well as the general public. natural phenomena – such as the pale- gaining importance, the SFC has already In addition to local film festivals, the SFC skinned amphibian popularly known as the co-financed international productions also actively promotes Slovenian films at all human fish (proteus anguinus). in the past when a Slovenian producer major regional film festivals. Due to the easy accessibility of these diverse was acting at least as a minor producer. locations, skilled film crews and production Other incentives, mainly in the form of In addition to the SFC and the Slovenian companies, unrestricted access to filming in public grants for film production, project Film Commission, the Ministry of Culture public spaces, reliable business practices development, script development and also plays an important role by promoting and beautiful unhindered nature, Slovenia educational activities are also available from the Government’s cultural policy and is justifiably a green, active and healthy the SFC, however, they are mainly aimed providing funds for different grants and filming location. at the promotion and support of Slovenian functioning of the SFC. Slovenian public film and filmmakers. Nevertheless, low institutions such as the VIBA Film Studio As a member of the European Union, administrative costs for filming on so (operating as a national technical film Slovenia offers a predictable and stable many picturesque locations which are at foundation offering two film recording filmmaking environment both politically the filmmakers’ disposal in the radius of a studios with adjacent production areas), and financially. Even though the average two hour drive may also be considered an RTV Slovenia (national radio and television gross salary in 2016 was EUR 1.5 and the incentive of great importance. station providing support mechanisms), minimum gross salary is set at EUR 790, the AGRFT (Slovenian Academy of Theatre, production costs and labour force are still Radio, Film and Television) and many very competitive, since many outstanding filming locations are available at low cost and local support crews are highly Official name of country REPUBLIC OF SLOVENIA experienced and motivated. Population 2 064 632 With many taxation issues being harmonised with the EU and the general VAT rate GDP in EUR (per capita) 18 67 0 set at 22% (with a reduced rate of 9,5%) Film suporting institutions (public) Slovenian Film Centre, RTV and the corporate income tax set at 17%, Public funding available in EUR SFC - 3,7 MIL 5,400,000 € Slovenia offers low production costs and RTV - 1,7 MIL predictability to film producers. Average production budget EUR 640,910 €
₁ Published in the Official Gazette of the Republic of Slovenia nos. 77/10, 40/12 and 19/14. all information in the table provided by Sarajevo Film Festival 07 SLOVENIA private companies (such as VPK and happen 15 days prior to shooting at the latest Q5. Can We Bring Our Arkadena) all offer pre-production, for a small administrative fee. In case of production and post-production support. national roads, the Slovenian Roads Agency Own Equipment? has the jurisdiction over issuing the relevant It should also be noted that Slovenia is permissions. In order to avoid any last a member of Eurimages (the European minute confusion, local police should also As Slovenia is a part of the EU, the customs Fund for the Support of Co-production and be notified in order to provide assistance legislation is harmonised with the relevant Distribution of Creative Cinematography with such closings. EU legislation. Non-commercial items and Audio-visual Works), Creative Europe intended for personal use are exempt MEDIA, Filming Europe EUFCN and EFP, Furthermore, the recent developments in the from customs duties, but professional the European Film Promotion. use of drones have been rather restrictive equipment and devices have to be reported since they imposed many limitations to to customs officials. Foreign citizens may filming from the air. The use of drones enter Slovenia with EUR 10,000 without heavier than 250 grams is currently notifying the customs officials. If the Q3. A License to Film? prohibited in Slovenia. Since this regulation amount of cash or checks exceeds EUR is temporary, a less restrictive regulation is 10,000, the foreigner must report it to the expected in the upcoming months. customs. Filming in public spaces is unrestricted in Slovenia and no special permit is needed. Finally, the governing bodies or private Sector specific regulation allow for the In order to ensure the availability of owners have a right to ask for adequate temporary admission of certain goods particular public spaces, local authorities remuneration for their participation in the into the territory of Slovenia. This means require an application to be filed with them filming process. Due to privacy issues, that the imported goods for the purpose of and an administrative fee should be paid. any person who does not give consent to be filming can be partially or fully relieved These administrative fees are often below filmed must be blurred and the licence plates from customs duties if such goods are be EUR 50. A similar procedure is applicable of random vehicles must be anonymised. re-exported within a specified period and for filming at (or inside of) publically owned have remained in the same condition, aside buildings and infrastructure. from normal depreciation due to regular use. Such an application should be filed at least Goods subject to the temporary admission two weeks prior to the commencement of Q4. What About My Crew? procedure must be exported within 24 filming in order to allow for sufficient time months of import. for the processing of the application and the subsequent confirmation of availability. Citizens from countries outside the EEA Slovenia is a signatory party to the generally have to obtain a visa before Convention on Temporary Admission, There are some areas of special natural or entering Slovenia. EEA citizens, as well as which allows nationals of other signatory historical value for which a more restrictive citizens of countries with which a bilateral countries to use the benefits of ATA Carnet. regime of obtaining a filming license agreement was stipulated, are in accordance This international document replaces the applies. An example is the Triglav National with the free movement of persons, entitled national customs documents and regular Park which is regulated by national acts to legally reside in Slovenia for a maximum procedures for the temporary import of that restrict its use. This does not mean of 90 days within a period of 180 days. goods, including the customs duties. that filming is not possible in such areas, Visas for longer stays such as temporary but filmmakers are advised to consult local residency are also available upon the authorities prior to filming in order to fulfilment of certain prerequisites such as obtain the relevant permits. Even though proof of insurance, sufficient means of additional restrictions apply for filming in subsistence and a valid passport, along with museums and similar institutions, it should other documentary requirements. be mentioned that –although filming of architecture is protected with copyrights- Due to specific provisions of the there are currently no royalties applicable. Employment, Self-employment and Work of Aliens Act2, no specific work permit is Additional permits are required in cases required for filming. where the closing of a street is required. In case the closing relates to a local street, local municipalities issue relevant permits upon filing an application – which should
₂ Published in the Official Gazette of the Republic of Slovenia no. 47/15. 20 Q6. Do I Have to Establish Q7. Anything Else? Transportation Slovenia has one main international a Local Company? airport located 20 kilometres north from Ljubljana, the capital city. Due to Slovenia’s Culture geographic position, all major European Slovenian culture is diverse due to its cities are reachable within a 2 hour flight. There is generally no obligation to historical roots as well as contemporary Good connections with EU and non-EU establish a local company or to employ modernisation and internationalisation countries enable an efficient and safe local workforce. However, having a seat processes. With the majority of population journey. In addition to air travel, trains are in Slovenia or any other EU member state being Roman Catholic, there are a large a good alternative. Daily international lines or a production partner with one can be number of churches, monasteries and other connect Ljubljana with Zurich, Vienna, required in order to apply for and receive religious buildings dating back centuries Zagreb, Beograd and many other cities. incentives. Foreign film productions and in the country. Slovenia also has more than Car rental is well developed in Slovenia and filmmakers that are interested in setting up 38 other different religious groups and is so are bus lines, especially in Ljubljana. their business in Slovenia have the option ethnically diverse, providing filmmakers to establish a local entity or cooperate with with a number of local casting options. local productions. Credits In recent years, Slovenia has been credited Business as a prime location for major international In case the foreign production or Being a member of the EU and OECD, productions of films, TV Shows and entertainment investor decides to establish Slovenia is considered a stable, safe and Commercials such as The Chronicles of a local entity of their own, the first choice reliable country with a GDP of EUR Narnia, Red Tails, Heidi, Mountain Dew would usually be a limited liability company 18,000 per capita. With economic reforms (TV Ad), Audi (TV Ad), just to name a few. (LLC). The minimal capital required in this underway and greater international case is EUR 7,500, in money or “in kind” promotion, Slovenia aims to further improve contributions (e.g. equipment, goods, real-estate, its performance both economically and securities, etc.). politically.
Alternatively, a branch office can be set up, and it will be considered as an organisational part of the parent company. Therefore, all contracts concluded by the branch office with third parties will be considered as contracts concluded by the founder, with the founder being fully liable for the branch’s obligations. The founders of the branch office are not legally required to contribute any monetary or in-kind contribution.
Finally, setting up a representative office is also an option for those who find it to suits their needs. However, it should be noted that while a foreign company can act and undertake business activities in Slovenia via its branch, this cannot be the case through an established representative office, since they are usually used for marketing and promotional purposes only.
07 SLOVENIA 08 Regional Film Production Summary
The figures presented in this publication A number of trends jump out: healthy However, the key and overarching trend is have been collated by Sarajevo Film increase in the overall number of films the increase in the number of tax incentive Festival’s Statistics and Analysis Office, produced, driven by Serbia, Macedonia and schemes for both local and foreign with information provided by individual Slovenia, countering the plateaued level of productions, with Serbia, Slovenia and national film centres and institutions. production in Bosnia and Herzegovina The Montenegro all introducing new schemes in They provide an insightful overview of public funding available for films increased 2016, meaning that all of the countries in the film production in relation to the level of in all countries except Serbia, with Croatia region – except Bosnia and Herzegovina and public support available across the Former leading the region at €9m, while the very Kosovo - operate this type of public support Yugoslavia. low average budget for feature films hints in addition to the existing selective subsidies at the trend of micro-budget productions schemes. It remains to be seen how this dominating the overall number of films fact will affect production costs and co- produced in all countries except Macedonia. production trends in the region in the future.
22 Overview - number of films produced / average budget / public funding available
2013 2014 2015 BOSNIA AND HERZEGOVINA
Number of films produced 10 13 13 Average budget € 750 000 750 000 750 000 Public funding available € 1 000 000 30 000 1 000 000
CROATIA
Number of films produced 2 30 26 Average budget € 1 000 000 1 000 000 1 000 000 Public funding available € 8 000 000 8 700 000 000 000
MACEDONIA
Number of films produced 2 12 14 Average budget € 5 100 000 4 500 000 5 000 000 Public funding available € 5 100 000 6 000 000 7 000 000
MONTENEGRO
Number of films produced 2 4 n/a Average budget € n/a n/a n/a Public funding available € 178 500 627 000 n/a
SERBIA
Number of films produced 20 2 33 Average budget € 700 000 500 000 500 000 Public funding available € 3 000 000 3 250 000 1 800 000
SLOVENIA
Number of films produced 24 11 17 Average budget € 1 008 118 1 008 050 640 10 Public funding available € 5 81 687 3 861 27 5 400 000
sources ational Film Centers OBS various sources including feature documentaries the information shown in the table is the property of Sarajevo Film Festival
08 REGIONAL FILM PRODUCTION SUMMARY 0 ur et or
Bosnia and Montenegro Herzegovina Podgorica Serdar Jola Piletića bb Banja Luka “Palada” Building, Vojvode Radomira Putnika 11 App. No. 3, 2nd floor 78 000 Banja Luka, Bosnia and Herzegovina 81 000 Podgorica Office phone +387 51 212 104 Office phone +382 20 238 991 Fax +387 51 212 108 Fax +382 20 238 984
Sarajevo Fra Anđela Zvizdovića 1 Serbia BC UNITIC, Tower B/II Belgrade 71 000 Sarajevo Resavska 23 Office phone +387 33 844 000 11 000 Belgrade Fax +387 33 844 003 Office phone +381 11 3094 200 Fax +381 11 3094 223 Croatia Zagreb Slovenia Radnička cesta 52/R3 10000 Zagreb Ljubljana Office phone +385 1 5601 330 Dunajska cesta 167 Fax +385 1 6011 410 1000 Ljubljana Office phone + 386 1 2009 680 Fax + 386 1 2009 699 Macedonia
Skopje Bulevar Partizanski Odredi No.14 "Aura" Business Center III/5 1000 Skopje Office phone +389 2 322 3870 Fax +389 2 322 3871
24 aranovic ni olic.com 0 ur et or
Bosnia and Montenegro Herzegovina Podgorica Serdar Jola Piletića bb Banja Luka “Palada” Building, Vojvode Radomira Putnika 11 App. No. 3, 2nd floor 78 000 Banja Luka, Bosnia and Herzegovina 81 000 Podgorica Office phone +387 51 212 104 Office phone +382 20 238 991 Fax +387 51 212 108 Fax +382 20 238 984
Sarajevo Fra Anđela Zvizdovića 1 Serbia BC UNITIC, Tower B/II Belgrade 71 000 Sarajevo Resavska 23 Office phone +387 33 844 000 11 000 Belgrade Fax +387 33 844 003 Office phone +381 11 3094 200 Fax +381 11 3094 223 Croatia Zagreb Slovenia Radnička cesta 52/R3 10000 Zagreb Ljubljana Office phone +385 1 5601 330 Dunajska cesta 167 Fax +385 1 6011 410 1000 Ljubljana Office phone + 386 1 2009 680 Fax + 386 1 2009 699 Macedonia
Skopje Bulevar Partizanski Odredi No.14 "Aura" Business Center III/5 1000 Skopje Office phone +389 2 322 3870 Fax +389 2 322 3871
aranovic ni olic.com Film Production Guide m o c . c i l o k c-n i i v o n a r a k
28