Canary Islands film sector calls for investor calm
The Canary Islands Audiovisual Cluster has issued a call for calm among investors in the sector following recent news reports about inspections by the Spanish Tax Agency (Agencia Tributaria) into various Economic Interest Groupings (Agrupaciones de Interés Económico, or AIEs) linked to film productions.
Legal recognition and financial incentives clarified
In an official statement, the organization clarified that AIEs are “legally recognized entities made available to the audiovisual and other industries for applying incentives.” It highlighted the significance of a January 2025 ruling by Spain’s Audiencia Nacional (National Court), which recognized AIEs as film co-producers “in every respect.” This crucial legal status allows them to access the tax deductions provided for in the Corporation Tax law. The Cluster underscored that this resolution resulted in the refund of over €100 million to investors in major productions, significantly reinforcing “the legal security of these investment tools.”
Respect for film institute authority
The Cluster also insisted that the Tax Agency must respect the official acts of the Institute of Cinematography and Audiovisual Arts (ICAA). This includes recognition such as a company’s registration in the Film Company Registry or its official designation as the producer of a film.
Inspections are routine administrative practice
Regarding the inspections initiated by the Tax Agency, the Cluster explained that they are part of the administration’s standard control mechanisms and “should not be interpreted as a factor of insecurity.” The platform pointed out that such practices are common across all tax domains, such as personal income tax (IRPF) or the Canary Islands General Indirect Tax (IGIC). According to sources within the Canary Islands’ audiovisual sector, the majority of procedures opened in recent years have concluded “positively” for the companies involved, without resulting in definitive sanctions.
Addressing media speculation
The organization expressed that recent articles published in various media on the topic of these inspections “are based on rumours or unconfirmed assumptions that have not been judicially validated.” It warned that such reporting can distort the perception of the sector and generate an unnecessary feeling of insecurity among potential investors.
Alternative investment models gaining traction
Furthermore, the Cluster reminded stakeholders of the existence of other investment models in the sector. One prominent example is the financing contract regulated by the Corporation Tax Law. Following a binding consultation with the General Directorate of Taxes in 2023, this tool was clarified as a viable pathway for taxpayers to directly apply tax deductions for financing audiovisual productions, without the need to use an AIE. The Cluster noted that this practice is becoming “increasingly common” in audiovisual production investment.
A strategically important industry for the islands
Finally, the organization reiterated that the audiovisual sector was declared strategic by the Parliament of the Canary Islands back in 2009. In 2024, the regional government further cemented this status by including the industry among its 14 strategic areas for economic diversification. The goal is to boost public and private initiatives that help attract talent, increase employability, and improve the overall productivity of the Canary Islands.
A message of confidence from the cluster
Through its president, Rubén Zarauza, the Executive Committee of the Audiovisual Cluster wants to send a clear message to the investment community: “Investors should be reassured and continue to look at the audiovisual sector as a unique opportunity.”
