Malta Film Incentives: Up to 40% Cashback for Your Film Production

What are the Malta Film Incentives and why are they so attractive?

The Malta Film Incentives are government support measures by the Maltese government for audiovisual productions. The program was launched in 2014 and has been continuously expanded since. Currently, you can receive up to 40% of your qualifying local expenditure as cashback.

But what does that mean for you in practice?

The 40% Cashback Policy in Detail

The Malta Film Incentive offers different funding rates depending on the project type:

Especially notable is the 40% cashback for digital content, including YouTube productions, social media content, and streaming content. That’s why Malta has become so attractive to content creators and digital media companies.

Which Productions Are Supported?

Malta supports a wide range of audiovisual content:

• Feature Films: From blockbusters to independent productions
• TV Series: Drama, comedy, reality shows
• Documentaries: All genres and formats
• Animation: 2D, 3D, mixed media
• Digital Content: Online series, social media content
• Commercials: Commercial spots and campaigns
• Music Videos: If the budget meets requirements

Excluded are any productions of a pornographic or extremist nature. Additionally, each project must pass the cultural test—more on that later.

Malta vs. Other Film Production Destinations

Why choose Malta over other locations? Here’s a comparison of the most relevant European film incentives:

Malta stands out thanks to its mix of high cashback and low taxes. Malta’s effective tax system means you face an actual tax burden of just 5% on distributed profits, thanks to refunds. In other words: You’re not just getting funding—you’re also optimizing your tax structure.

Requirements for Malta Film Incentives: Your Path to Funding

Before you can benefit from Malta Film Incentives, you have to meet certain criteria. The good news? They’re more clearly defined than in many other countries.

Minimum Spend and Qualification Criteria

Each production category has its own minimum local expenditure in Malta. You must be able to prove these before starting production:

• Feature Films: Minimum €1 million local spend
• TV Productions: Minimum €500,000 per season
• Documentaries: Minimum €150,000
• Digital Content: Minimum €50,000
• Animation/VFX: Minimum €300,000

Another rule: These minimum expenses must be incurred within 12 months. For longer productions, you can submit multiple applications.

Local Expenditure Requirements

Only certain expenditure categories qualify for cashback:

• Salaries and wages: For Malta-based crew members
• Equipment rental: From Maltese companies
• Location costs: Shooting permits, rents, catering
• Post-production: Editing, sound, VFX in Malta
• Transport: Local transport and logistics
• Accommodation: Hotels, apartments for cast and crew
• Services: Casting, legal, accounting

Not eligible: international flights, fees for foreign stars, and shipping equipment to Malta. Smart budget planning is crucial.

Cultural Test Criteria

Malta uses a points system for the cultural test. You need at least 16 out of a possible 35 points:

The good news: Simply using Maltese locations and local crew often already secures the 16 points. That’s what makes Malta so attractive for international productions.

The Application Process: Step by Step to Your Film Cashback

The application process for Malta Film Incentives is managed by the Malta Film Commission. Here’s a complete overview—from your initial submission through to payout.

Applying for Preliminary Approval

Step 1 is the preliminary approval (Provisional Certificate), which you need to secure before you start production:

1. Prepare application documents:
   • Detailed budget with Malta breakdown
   • Script or treatment
   • Proof of financing
   • Production schedule with timeline
   • Crew list with nationalities
2. Submit online application: Via the Malta Film Commission portal
3. Wait for processing: 4-6 weeks for review
4. Fulfil any additional conditions: If further documentation is requested

The processing fee is €1,500 for feature films and €750 for smaller productions, which will be offset against your support upon approval.

Gathering Documentation and Evidence

Throughout production, you’ll need to collect all relevant documentation, which is crucial for your final cashback:

• Invoices and receipts: Fully document all Malta expenses
• Payroll records: Complete breakdown of local staff
• Shoots log: Proof of Malta locations
• Equipment lists: Rental contracts with Maltese firms
• Bank statements: Payment proof for all expenses

My advice: Hire a local accounting firm in Malta. It costs a little more, but will save you a lot of time and stress in the end. Local experts know all the specific pitfalls.

Final Accounting and Payment

After production wraps, here’s what happens next:

1. Apply for the Final Certificate: Within 6 months of completing production
2. Submit complete documentation: All invoices and records
3. Review by Malta Film Commission: Audit of your submission
4. Cashback payment: Within 90 days of approval

The payment goes directly to your Maltese company’s account. You’ll therefore need a local entity—more on this in the next section.

Important: You must apply for the Final Certificate within 18 months of receiving the Provisional Certificate. Otherwise, you’ll lose your entitlement to funding.

Tax Optimization: How to Make the Most of Malta Film Incentives

This is where it gets really interesting. Malta Film Incentives aren’t just funding—they’re a building block in your international tax optimization strategy.

Corporate Tax Advantages in Malta

Malta has a unique tax system. The nominal corporate tax rate is 35%. But—and this is key—you receive a refund on distributed profits:

What this means: Your film incentive payouts are taxed at just 5%. For €1 million cashback, you pay only €50,000 in tax instead of €350,000—a €300,000 saving.

International Tax Planning with Film Incentives

Malta Film Incentives can be seamlessly incorporated into international tax structures:

• IP holding in Malta: Your film rights are held in Malta
• Optimize licensing income: Income from film exploitation flows to Malta
• Leverage double-tax treaties: Malta has over 70 DTT agreements
• Apply EU directives: Parent-Subsidiary Directive for intra-group profits

Sample structure:

1. Production in Malta using the film incentives
2. Film rights held by a Maltese IP holding
3. Licensing to distribution companies worldwide
4. Royalties flow tax-efficiently to Malta
5. Distributions taxed at just 5%

This way, you combine funding with lasting tax optimization.

Holding Structures for Entertainment Businesses

For larger entertainment companies, I often recommend a multi-layered structure:

• Level 1: Operational production company in Malta
• Level 2: IP holding company in Malta
• Level 3: International holding (e.g. Netherlands, Cyprus)
• Level 4: Personal holding or family office

This structure offers maximum flexibility for:

• Reinvesting profits
• International expansion
• Succession planning
• Asset protection

Note: Such structures require professional advice. The rules are constantly evolving, especially following BEPS and EU Anti-Tax Avoidance Directives.

Practical Implementation: From Idea to Supported Production

While theory is all well and good, how do you actually implement Malta Film Incentives? Here’s a practical guide.

Budgeting with Incentives

Cashback will significantly change your budgeting. Here’s an example for a €2 million TV production:

This means your net costs are just €1,750,000 instead of €2,000,000—saving 12.5% of your overall production budget.

Local Partners and Service Providers

Malta boasts a well-developed film infrastructure. Key local partners include:

• Production service providers:
  • Shadeena Entertainment Services
  • Kalkara Studios
  • Inspire Studios
• Equipment rental companies:
  • Film Equipment Malta
  • Cine Rent Malta
  • Technical Film Services
• Post-production:
  • Filmworks Malta
  • Digital Audio Visual
  • Post Production Malta

My tip: Contact these companies early in your planning phase. Many offer package deals that help optimize your Malta expenditure.

Timing and Project Management

Timing is crucial for Malta Film Incentives:

1. 6 months before shooting: Apply for the Provisional Certificate
2. 4 weeks before shooting: Set up a local company
3. 2 weeks before shooting: Open bank accounts
4. During production: Keep thorough documentation
5. Within 6 months after production: Apply for the Final Certificate
6. After 90 days: Receive cashback payout

Plan your cash flow accordingly. The cashback isn’t paid until after production. You’ll need sufficient liquidity to pre-finance your expenses.

Case Studies: How Others Have Benefited from the Malta Film Incentives

Real-world examples are the best way to see Malta Film Incentives in practice. Here are three distinct success stories.

Netflix and Amazon in Malta

Major streaming services regularly use Malta for their productions. A famous example: “By the Sea” starring Angelina Jolie and Brad Pitt, which was partly shot in Malta.

Advantages for big studios include:

• Scalable funding: €10 million in Malta expenses yields €2.5 million in cashback at 25%
• EU location: Streamlined handling for European distribution contracts
• Experienced crews: Malta offers highly qualified professionals with years of international production experience
• Diverse locations: From historic cities to Mediterranean landscapes

Studios also often use Malta as a hub for their European activities, allowing them to combine the Malta incentives with other EU funding programs.

Independent Productions

Smaller productions also benefit significantly. For example, an independent documentary with a €200,000 budget:

This €37,500 in savings can be used for:

• Upgraded equipment
• Longer production periods
• More professional post-production
• Or just higher profit margins

Content Creators and Digital Media

Malta Film Incentives are especially attractive for content creators. With 40% cashback on digital content and a minimum spend of just €50,000, Malta is ideal for YouTubers and streaming producers.

For example: A YouTube channel with 2 million subscribers produces a high-end series in Malta:

• Budget: €100,000 for 10 episodes
• Malta expenses: €80,000 (crew, equipment, locations)
• Cashback: €32,000 (40% of €80,000)
• Net costs: €68,000

That’s a 32% cost saving, allowing creators to produce even higher quality content or simply improve their margins.

Malta also offers content creators additional advantages:

• EU-wide exploitation rights without extra regulations
• Low corporate tax on advertising revenues
• Straightforward dealings with international sponsors
• Professional infrastructure for social media content

Common Mistakes and How to Avoid Them

In my consulting practice, I see the same mistakes with Malta Film Incentives time and again. Here’s how to avoid the most frequent pitfalls.

Incomplete Application Documents

Mistake No. 1: Incomplete or inaccurate application documents. This results in delays or even rejections.

The most common issues:

• Insufficiently detailed budget: Malta expenses are not clearly itemised
• Missing proof of funding: Not all sources of finance are documented
• Inaccurate crew information: Nationalities and roles not clearly specified
• Vague production plan: Shooting days and locations too imprecise

How to avoid these mistakes:

1. Professional budgeting: Have your budget reviewed by a Maltese expert
2. Collect all documentation: Have all evidence ready before applying
3. Local advice: Work with an experienced Maltese production company
4. Build in a buffer: Factor in 20% extra time for the application process

Timing Issues When Applying

Mistake No. 2: Incorrect timing when applying. Many producers underestimate the processing times.

Key deadlines:

• Provisional Certificate: Must be obtained BEFORE production starts
• Final Certificate: Within 6 months after production ends
• 18-month period: Final Certificate must be claimed within 18 months of the Provisional Certificate

My timing recommendations:

Tax Pitfalls

Mistake No. 3: Insufficient tax planning. Many producers focus solely on the cashback and overlook the tax implications.

Common tax issues:

• No Maltese company: Cashback is only available to Maltese companies
• Ignoring substance requirements: Malta requires genuine economic activity
• Double taxation: Cashback taxed in both countries
• Overlooking withholding tax: On distributions abroad

How to optimize your tax structure:

1. Establish a Maltese company in good time: At least 4 weeks before production starts
2. Build substance: Office, local staff, real activities
3. Use double tax treaties: Malta’s DTT with your home country
4. Professional advice: Engage a tax adviser with Malta expertise

Most importantly: Document all decisions for tax purposes. The tax authorities will scrutinize large payments more closely.

Frequently Asked Questions about Malta Film Incentives

Can German companies also apply for Malta Film Incentives?

Yes, but only via a Maltese company. You must set up a local production company or collaborate with a Maltese partner. The cashback is paid exclusively to Maltese companies.

How long does it take to receive the cashback payment?

Once all documents for the Final Certificate have been submitted, review takes 6-8 weeks. Payment is made within 90 days of approval. In total, plan for 4-6 months after finishing production.

What are the minimum spend levels I must achieve in Malta?

It depends on your production type: Digital content €50,000, documentaries €150,000, TV productions €500,000, feature films €1 million. This expenditure must be incurred within 12 months.

Can I combine Malta Film Incentives with other funding schemes?

Yes, absolutely. Malta Film Incentives can be combined with EU funding, national film support programmes, and private investors. It’s vital to handle all funding streams correctly from a tax perspective.

Do I have to pay tax on the cashback?

Yes, cashback is taxable income in Malta. However, you benefit from the Maltese refund system, so only 5% tax applies to distributed profits. For larger sums, professional tax planning is worthwhile.

What documents do I need for the application?

For the Provisional Certificate: Detailed budget, proof of financing, script/treatment, production schedule, crew list. For the Final Certificate: All invoices and receipts, payroll records, shoot logs, bank statements.

Can I use the incentive for YouTube content, too?

Yes, digital content is supported at 40% with a minimum local spend of €50,000. This makes Malta especially attractive for high-quality YouTube series, online shows, and social media content.

What happens if I dont meet the minimum spend level?

You won’t receive cashback. The Malta Film Commission checks carefully that all requirements are met. Build a buffer into your budget and seek advice beforehand.

Do I need a local partner in Malta?

Not strictly necessary, but highly recommended. An experienced local partner knows the requirements, has established contacts, and can save you a lot of time and hassle. The costs are usually outweighed by the benefits.

How does the cultural test work in practice?

You need at least 16 out of a possible 35 points. Simply by using Maltese locations (4 points), local crew (6 points) and post-production in Malta (6 points), you already achieve 16 points. The test is therefore usually straightforward to pass.