The Hungarian financial support system (Motion Picture Act and Corprate Tax Act) has two pillars: indirect state support (tax incentives for films and related projects) and direct state support (for local films or co-productions).
Only feature films, short films, documentaries, science, nature and animated films, made-for-TV movies and TV series are eligible
Tax rebate is 20% of the eligible Hungarian spend
Eligible spend includes all payments contained in the budget that were paid to a Hungarian taxpayer
Direct pre/post and production expenses paid by the qualified Hungarian production
Wages, above- and below-the-line, when paid by the qualified Hungarian production
Financing costs, and administration, insurance, completion bond, accommodation, etc. costs
Items excluded by the law are
Indirect costs (eg. A&P) over 2% of the overall spend (max 17 kEUR)
Costs incurred after the master print (distribution)
Royalties are limited to 4% of the Hungarian budget of the film
Producers’ fees are limited to 4% of the Hungarian budget of the film
Up to 25% of the eligible spend can be foreign spend which also qualifies for the 20% tax rebate
Total state subsidies shall not exceed 50% of the production budget, or in case of
Co-productions 50% of the Hungarian contribution,
Low-budget films and films produced in Hungarian language the extent of subsidies is 90%
Documentaries, animation, shorts, experimental films etc. 100%
The tax rebate is a non-recourse, non-repayable and non-recoupable cash rebate.
To read more about the registration & qualification process and the claims cycle, please click here to download our full tax incentive guide.
Advantages of filming in Hungary
Experienced and English speaking professional crew with 12 hours working day shifts and no unions
Industry standard equipment (cameras, lights, cranes)
Set construction know how
The capital city is today a cosmopolitan hub of music, culture and art, full of galleries, theater and opera performances, and various concerts
The continental climate provides four full seasons and comfortable summers with up to 16 hours of sunlight
Please click on the following link to see the list of films that have chosen Hungary as their filming location: Filmed in Hungary. You have to admit, with nearly 1 500 titles produced here, you can not go wrong by coming to us.
Beautiful cities and places with various architectural styles all over the country, including roman ruins, Turkish baths and mosques, medieval castles, ornate palaces, and socialist behemoths.
Various shooting possibilities: Budapest can be Amsterdam, Berlin, Buenos Aires, London, Paris, Vienna or Moscow.
Hungary ups film tax rebate to attract more foreign productions!
Hungary is set to increase its tax rebate by 5% later this year as the country aims to increase the amount of foreign film productions making use of the nation as a film location.
Under the new rules, international producers shooting in Hungary will be able to claim up to 30% of local spend.
In June the European Commission approved the country’s new rebate for productions shooting in the country to 25% - a 5% increase to its previous arrangement.
However, under an additional rule that allows filmmakers to also shoot across Hungary’s borders without losing any of their possible tax benefits, producers can also apply for the rebate to be applied to a maximum of 20% of their overall spend, which would then amount to a 30% rebate overall.
With the new scheme Hungary is on a par with countries such as the Netherlands, whose new cash incentive of 30% came into force in May, and the UK, which has a popular 25% tax incentive in place.
One production that is set to come to Hungary (Budapest) later this year is the feature film The Zookeeper's Wife, starring Jessica Chastain. Niki Caro’s film is an adaptation of the World War II novel by Diane Ackerman.
Other productions to have filmed in Hungary over the past few years include World War Z, 47 Ronin, The Rite and The Boy In The Striped Pyjamas, while TV productions to have spent time there include The Borgias, Pillars Of The Earth and Going Postal.
Hungary has a proven track record when it comes to the production of film, television programmes and commercials.Many international producers prefer to pay slightly more than they might elsewhere in Eastern Europe because they have the security of knowing that the crews, equipment and studios in Hun…