I. PORTUGAL FILM COMMISSION The Portuguese Film Commission (PFC) was created in June 2019 and it is a body within the dependence of the members of the Portuguese Government responsible for the areas of Culture and Tourism. Our mission is to support and promote cinema and audiovisual and the internationalization of Portugal as a filming destination, as well as ensuring the operationalization of procedures necessary for the cinematographic and audiovisual production in national territory. The objectives of the PFC are, among others: 1. To project and affirm Portugal as a premium destination for cinema and audio-visual production and filming; 2. Contribute to the national and international dissemination of the Fund for Tourism and Cinema; 3. Define best practices and methods to support national and international producers; 4. To define the method of connection to the territory, with special focus on the relationship with the municipalities and the articulation with the Regional Tourism Entities, namely in the local monitoring of the productions; 5. To ensure coordination between all the services to be provided within the scope of the National Film Commission, in particular with the creation and implementation of the one- stop-shop for procedures in the area of support and licensing; 6. To make available databases of the various technical and logistic service providers, ensuring interoperability, including using the integrated digital platform; 7. To ensure the correct identification and reporting of the practical needs and difficulties experienced by the productions in the national territory; 8. Identify necessary legislative or regulatory changes aiming at the simplification and standardization of licensing procedures and administrative authorization of filming throughout the national territory; 9. Collaborate in the preparation of the multiannual strategic plan of cinema and audiovisual, in the context of internationalization, in the international promotion of Portugal as a filming destination, provided for in article 3 of Decree-Law no. 25/2018, of April 24, particularly through the promotion of meetings with industry players. Contact us: [email protected] Praça Bernardino Machado, 2 1750-042 Lisboa | Portugal T: +351 213 230 802 [email protected] www.portugalfilmcommission.com 1/7 II. CASH REBATE INCENTIVE Portugal created one of the most competitive incentive systems in Europe: a cash rebate, funded by the Tourism Board. It applies to film and TV with the minimum qualified Portuguese production expenses (QPPE) of €500.000,00 (around $600.000,00) for fiction and animation and €250.000,00 (around $300.000,00) for documentaries and post-production. Main features: ❖ Films, TV and VOD productions - national and foreign (line/services) films, official and international physical co-productions ❖ Incentive: 25% or 30% of QPPE - rebate rate is determined by a “Cultural Test” that focuses on the project characteristics ❖ First come first served basis ❖ Maximum recap per project of €4M (circa $5M) The €4M cash rebate per production, and yearly fiscal estimates, are just budgetary place markers, not inscribed allocations. The incentive management authority has the funds and legal autonomy to expand them both as to accommodate any particular projects it approves. Projects submitted for appreciation will be notified of a final binding decision of approval within 30 days, upon which cash rebate installments will be made available. ❖ Upfront payments in installments ❖ Above-the-line expenses are considered QPPE until the limit of 35% of total QPPE ❖ Appreciation timing: 20 working days Eligible expenditure: General rule: all production expenditures, either provided by persons or companies, qualify as QPPE if they are subject to tax liability in Portugal. Production expenditures related to production activities carried out in Portugal but contacted in another EU member state qualify as QPPE until the limit of 20% of total QPPE. Expenditure related with development and postproduction qualifies as QPPE. For feature films, eligible expenditure should fall within the following budget lines: • Above-the-line: COPYRIGHT AND ROYALTIES; PRODUCER FEES; DIRECTOR FEES; MAIN ACTORS. • Bellow-the-line: TECHNICAL TEAM; ARTISTIC TEAM; SOCIAL CHARGES; TRAVEL, STAYS AND TRANSPORTATION; CENOGRAPHY; TECHNICAL MEANS; IMAGE AND SOUND SUPPORTS; Praça Bernardino Machado, 2 1750-042 Lisboa | Portugal T: +351 213 230 802 [email protected] www.portugalfilmcommission.com 2/7 IMAGE LABORATORY; FILM EDITING; MISCELLANEOUS PRODUCTION EXPENDITURE; INSURANCE AND MISCELLANEOUS; PRODUCER’S STRUCTURE COSTS. VAT (Value Added Tax) - the Portuguese company will deduct the amount from its own VAT liability. In the case of negative liability, a refund is claimed. The refund right is acquired within a maximum period of 9 months. Tax requirements for foreign cast and crew The expats tax regime only applies to foreign cast and crew that stay in Portugal for more than 180 days/year (so they can be considered as residents), benefiting from a Personal Income Tax flat rate of 20% (plus 3.5%) for 10 years. When cast and crew stay in Portugal is shorter, the U. S. – Portugal Convention for the Avoidance of Double Taxation (DTA – Double Taxation Agreement) is applied. Cast or crew can choose to be paid in Portugal or the U. S.: - Paid in Portugal and taxed in a foreign country – these expenses will not be considered eligible expenditures for cash rebate purposes. - Paid in Portugal and taxed in Portugal – 25% Personal Income Tax flat rate for non-residents. These expenses will be considered as an eligible expenditure for cash rebate purposes. Project (screenplay) analysis/expert boards, objectionable materials The incentive is automatic and expenditure-based but, as the cash rebate is granted pursuant European Union regulation, eligibility of projects and rates (25%-30%) are evaluated through a cultural and economic test analysis grid. Thus, the Portuguese Film Institute needs to read the screenplays, in order to evaluate content items. Note that all applications and documents (including screenplays and other copyright protected material) are processed internally by the Portuguese Film Institute officials only, who are bound by a strict public service rules on reserve, confidentiality on all documents. No other considerations apply concerning content. No censorship. The only exclusions are films whose content is advertising, propaganda or pornography. Films that intentionally promote racism, xenophobia, violence, or other values manifestly contrary to the fundamental rights and freedoms enshrined in the Portuguese Constitution and in International Law. Praça Bernardino Machado, 2 1750-042 Lisboa | Portugal T: +351 213 230 802 [email protected] www.portugalfilmcommission.com 3/7 III. REASONS FOR SHOOTING IN PORTUGAL 1. SUNNIER DAYS: long hours of sunlight and clear skies - almost 300 days of sunshine per year and low levels of precipitation, allowing for year-round production. Average temperature in 2019: 64°F. 2. VARIETY: every imaginable scenario can be found in Portugal: beaches, castles, monuments, impressive old and modern buildings, churches, cathedrals, monasteries, parks, gardens, historical villages, walled cities all types of landscapes (mountains, forests, plains, rocky slopes, valleys, caves, rivers, lagoons and even jungles) http://picportugal.com/en/locations.html 3. ACCESSIBLE LOCATIONS: diversity of scenarios in short distance. Less than 5 hours to travel from North to South by car; 6 international airports (Lisbon, Oporto, Faro, Azores and Madeira) and 5 international harbors. Direct flights between New York, Boston, Philadelphia, Washington D.C., Miami, San Francisco and Lisbon. 4. EXPERIENCED HARD-WORKING PROFESSIONALS: skilled talent available at competitive rates. Portuguese crews are used to working in international productions and have a great deal of experience in film and TV productions as well as in high end commercials. Cast and crew are fluent in English. Spanish and French are also widely spoken. 5. STUDIO FACILITIES & EQUIPMENT: Studios are available in the Lisbon and Oporto areas with professional stages with all the latest equipment and facilities. All types of equipment are available in the Lisbon area and in the whole county: camera, lighting, sound and grip. Post production is mainly located in Lisbon metro area. 6. AFFORDABLE COST OF LIVING & GREAT FOOD 7. COPRODUCTION TREATIES: with more than 50 countries worldwide, including all Portuguese speaking countries, which represent + 250 M Portuguese speakers (such as Brazil, Mozambique, and Angola) and Latin American countries. 8. STABLE AND SAFE COUNTRY – 3rd safest country in the world as per the Global Peace Index in 2019 and 29th in the Corruption Perceptions Index 2017. 9. CASH REBATE FOR FILM PRODUCTIONS 10. SCOUTING PROGRAMM Praça Bernardino Machado, 2 1750-042 Lisboa | Portugal T: +351 213 230 802 [email protected] www.portugalfilmcommission.com 4/7 IV. ADDITIONAL INFORMATION A. CUSTOMS AND VISA ISSUES Customs: equipment arriving by plane is cleared from the airport on the same day. Equipment arriving by ship takes less than 1 week to clear customs. Visas for foreign cast and crew: no visa required for U. S. citizens’ stays of up to 90 days, extendable for another 90 days, to a total of 180. For other nationalities, visas may be required for 90 days stays, which can also be extended for the same period. You can find more information