Malta’s unrivalled increase in popularity as a filming location continues for 2024

The film industry and the economy

The local film industry generates scores of jobs and contributes significantly to the country’s GDP, reported to be around €85 000 000 in 2022 alone according to www.maltabusinessweekly.com The Maltese government is doing everything it can by means of incentives made available to both local and international companies. Having big international companies on set locally results in the creation of lucrative opportunities for local creative and talented individuals such as actors, film extras, freelancers, carpenters and builders, caterers, engineers, producers, production studios, post-production teams and countless others.

Malta’s film industry, propelled by substantial government investment, is set to attract more international productions in 2024. Malta Film Commissioner Johann Grech highlighted the country’s aim to become the “home for international productions.” The local film industry has experienced significant continued growth over the years, with notable names like Director Ridley Scott and the Jurassic World franchise choosing Malta as a location and backdrop for their projects. Johnny English 4 is also set to film in Malta in June 2024.

Incentives and rebates

Local leaders expressed pride in the industry’s growth, emphasising its year-round operation and providing more opportunities for professional development. The film industry has a positive impact on the Maltese economy and the inclusion of local productions in the cash rebate scheme is deemed a significant achievement, geared towards foreign direct investment benefiting local productions. The Malta Film Commission’s commitment to the local film industry thus remains absolutely clear and despite some challenges such as the ongoing actors’ strike in the USA, Malta is poised to attract many more projects during 2024. The Malta Film Commission, with its significant responsibility, is fully prepared for Malta to be the ideal home for big international productions, thereby creating exciting opportunities not only for local film crews but all the other associated ancillary industries as well.

The commitment to investing in the Malta film industry continues, evident in the recently presented government budget for 2024, which reinforces the 40% cash rebate offered to filmmakers. This means that productions meeting a cultural test can benefit from a rebate of up to 40% of eligible expenditure, making Malta extremely attractive to the biggest global players.

According to Ridley Scott’s executive producer, Aidan Elliot: it was “a no-brainer” choosing Malta as a location shoot due to the incentives on offer by government as reported in the Times of Malta in an article published on January 7, 2023. He also added that “It just absolutely cemented our decision to go there because not only did we have this great location and backdrop but we also had this incredibly, incredibly generous cash rebate.”

We look at the details of what is on offer by the Maltese government to filmmakers:

• • The incentives take the form of a cash grant awarded to qualifying productions based on the incurred qualifying expenditure in Malta. Additionally, there’s a substantial allowance for expenses related to non-Maltese crew and entities, provided they are directly and physically associated with the work conducted in Malta.
  • Upon completion of filming, a qualifying production company can receive a minimum cash rebate of 30% of the eligible expenditure, with the option to apply for an initial 10% payment once shooting commences, subject to proper accounting. Productions featuring Malta prominently or possessing significant Maltese cultural content may qualify for rebates of up to 35% and if Malta Film Studios (including water tanks) is part of the expenditure, the rebate can reach 40%.
  • While the film commission is currently flexible on the criteria for increasing the rebate, it encourages a genuine effort to maximise local resources.
  • Feature films, television productions, mini-series, animation and documentaries are all eligible for incentives as long as they are partially filmed in Malta.
  • A qualifying production must submit an application, including a detailed projection of the Malta budget and completion of the Cultural Test.
  • Provisional approval is granted within a month, with final approval contingent upon the review of a comprehensive application, audited accounts and a detailed analysis of production expenditure in Malta, post-shooting.
  • The cash rebate is disbursed no later than five months from the final application date, though, as of 2023, processing times have been extended due to the increased number of films shot in Malta annually.
  • Regarding fiscal incentives, the Malta Enterprise Act offers tax credits of up to 35% for companies or individuals investing in audio-visual infrastructure in Malta.
  • Foreign company directors or investors establishing a company in Malta can benefit from a reduced final company tax rate of 5%, as opposed to the standard 35%. However, it’s important to note that, as of March 30, 2023, this 5% tax incentive is anticipated to be phased out within the next three years to comply with new European Commission policies on minimum tax rates.