Malta Film Incentives: Up to 40% cashback for your film production

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

Malta Film Incentives are government subsidies from the Maltese government for audiovisual productions. The program was introduced in 2014 and has been continuously expanded since then. Currently, you can receive up to 40% of your eligible local expenses as cashback.

But what does that actually mean for you?

The 40% Cashback Rule in Detail

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

The 40% cashback for digital content is particularly interesting. This covers YouTube productions, social media content, and streaming content. Malta has therefore become increasingly attractive for content creators and digital media companies.

Which productions are eligible?

Malta subsidizes a broad spectrum 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
• Advertising: Commercial spots and campaigns
• Music videos: With appropriate budget

Only content with pornographic or extremist character is excluded. In addition, all productions must pass the cultural test – more on that later.

Malta vs. other film locations in comparison

Why choose Malta over other film destinations? Here’s a comparison of the main European film incentives:

Malta scores with a combination of high cashback and low taxes. The effective tax system in Malta allows you to get refunds, effectively resulting in only 5% tax on distributed profits. That means: You receive subsidies and optimize your tax structure at the same time.

Requirements for Malta Film Incentives: Your path to funding

Before you can benefit from Malta Film Incentives, you must meet certain criteria. The good news: These are more clearly defined than in many other countries.

Minimum expenditures and qualification criteria

Each production category has specific minimum local expenses in Malta. You need to prove these before starting production:

• Feature films: At least €1 million in local spend
• TV productions: At least €500,000 per season
• Documentaries: At least €150,000
• Digital content: At least €50,000
• Animation/VFX: At least €300,000

Additionally: Minimum expenses must be incurred within 12 months. For longer productions, you can submit multiple applications.

Local spending requirements

Only certain expenses qualify for cashback. These are the eligible cost categories:

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

Excluded: International flights, fees for foreign stars, and equipment transport to Malta. Skillful budget planning is therefore essential.

Cultural test criteria

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

The good news: Just using Maltese locations and local crew is usually enough to reach the 16 points. This makes Malta especially attractive for international productions.

The application process: Step-by-step to your film cashback

The application process for Malta Film Incentives runs through the Malta Film Commission. Here, I’ll walk you through the entire process – from first submission to payment.

Apply for preliminary approval

Step 1 is obtaining the provisional certificate. You need to have this before starting production:

1. Compile application documents:
   • Detailed budget with Malta share
   • Script or treatment
   • Proof of financing
   • Production schedule with timeline
   • Crew list with nationalities
2. Submit online application: Through the Malta Film Commission portal
3. Wait for processing time: 4-6 weeks for review
4. Meet requirements: If additional evidence is requested

The application fee is €1,500 for feature films and €750 for smaller productions. This is offset if approval is granted.

Collect documentation and evidence

During production, you must collect all relevant supporting documents. This is essential for the final cashback:

• Invoices and receipts: Document all Malta-spending completely
• Payroll accounting: Detailed listing of all local staff
• Shooting day logs: Proof of Malta locations
• Equipment lists: Rental contracts with Maltese companies
• Bank statements: Proof of payment for all expenses

My tip: Hire a local accounting firm in Malta. It costs extra but saves time and headaches later. Local experts also know all the pitfalls.

Final accounting and payment

After production ends, the final calculation follows:

1. Apply for final certificate: Within 6 months of production
2. Submit complete documentation: All receipts and evidence
3. Review by Malta Film Commission: Audit of submitted documents
4. Cashback payment: Within 90 days of approval

The payment is made directly to your Maltese company account. For this, you need a local entity – more on that in the next section.

Important: You must apply for the final certificate within 18 months of the provisional certificate. Otherwise, you lose your claim 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 a subsidy – they’re a building block for your international tax optimization.

Corporate tax benefits in Malta

Malta has a unique tax system. The nominal corporate tax rate is 35%. But – and this is crucial – you get refunds on distributed profits:

This means: Your film incentive payments are taxed at only 5% effectively. For €1 million cashback, you pay just €50,000 in tax instead of €350,000. A saving of €300,000.

International tax planning with film incentives

Malta Film Incentives can be perfectly integrated into international tax structures:

• IP holding in Malta: Hold your film rights in Malta
• Optimizing royalties: Channel licensing revenues to Malta
• Utilize double tax treaties: Malta has more than 70 DTTs
• Apply EU directives: Parent-subsidiary directive for group profit flows

Sample structure:

1. Production in Malta with film incentives
2. Film rights in Maltese IP holding
3. Licensing to distribution companies worldwide
4. Licensing fees flow tax-efficiently to Malta
5. Distribution at just 5% taxation

This way you combine subsidies with long-term tax optimization.

Holding structures for entertainment companies

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

• Level 1: Operating 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 provides maximum flexibility for:

• Reinvestment of profits
• International expansion
• Succession planning
• Asset protection

But be careful: Such structures require professional advice. The rules are constantly evolving, especially after BEPS and EU anti-tax-avoidance directives.

Practical implementation: From idea to subsidized production

Theory is all well and good. But how do you actually implement Malta Film Incentives? Here’s the practical approach.

Budget planning with incentives

Cashback changes your entire budget planning. Here’s an example for a €2 million TV production:

This means: Your effective cost is only €1,750,000 instead of €2,000,000. Thats a 12.5% cost reduction for the overall production.

Local partners and service providers

Malta has a well-established film infrastructure. The most important local partners:

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

My tip: Contact these companies already in the planning phase. Many offer package deals that optimize your Malta spend.

Timing and project management

Timing is crucial with Malta Film Incentives:

1. 6 months before filming: Apply for provisional certificate
2. 4 weeks before filming: Set up local company
3. 2 weeks before filming: Open bank accounts
4. During production: Complete documentation
5. Within 6 months: Apply for final certificate
6. After 90 days: Receive cashback payment

Plan your cash flow accordingly. Cashback comes only after production is completed. Therefore, you need sufficient liquidity for pre-financing.

Case studies: How others have benefited from Malta Film Incentives

Concrete examples are the best way to show how Malta Film Incentives work in practice. Here are three different success stories.

Netflix and Amazon in Malta

Major streaming services regularly use Malta for their productions. A well-known example is By the Sea with Angelina Jolie and Brad Pitt, which was partially filmed in Malta.

The advantages for major studios:

• Scalable funding: For €10 million Malta expenses, 25% cashback means €2.5 million savings
• EU location: Simple handling for European distribution contracts
• Experienced crews: Malta has highly skilled professionals thanks to years of international productions
• Diverse locations: From historical cities to Mediterranean landscapes

In addition, studios often use Malta as a hub for their European activities. This way they can combine film incentives with other EU funding.

Independent productions

Smaller productions benefit significantly as well. For example: An independent documentary with a €200,000 budget.

This €37,500 saving enables:

• Better equipment
• Longer production time
• Professional post-production
• Or simply a higher profit margin

Content creators and digital media

Malta Film Incentives are especially interesting for content creators. With the 40% cashback for digital content and only €50,000 minimum spend, Malta is becoming attractive even for YouTubers and streaming producers.

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

• Budget: €100,000 for 10 episodes
• Malta spend: €80,000 (crew, equipment, locations)
• Cashback: €32,000 (40% of €80,000)
• Effective cost: €68,000

That equals a cost reduction of 32%. This allows creators to produce significantly more high-quality content or simply increase their profit margin.

In addition, Malta offers more advantages for content creators:

• EU-wide exploitation rights without additional regulations
• Low corporate tax on ad revenues
• Easy handling with international sponsors
• Professional infrastructure for social media content

Common mistakes and how to avoid them

In my consulting practice, I keep seeing the same mistakes with Malta Film Incentives. Here I’ll show you the most common pitfalls – and how to avoid them.

Incomplete application documents

Mistake #1: Incomplete or imprecise application documents. This leads to delays or even rejections.

The most common problems:

• Insufficiently detailed budget: Malta expenditures not clearly separated
• Missing proof of financing: Not all sources of funds documented
• Inaccurate crew details: Nationalities and roles not specified
• Vague production plans: Shooting days and locations too imprecise

This is how you avoid these mistakes:

1. Professional budgeting: Have the budget checked by a Maltese expert
2. Complete documentation: Gather all proof before applying
3. Local advice: Work with an experienced Maltese production company
4. Allow for buffer: Allow 20% more time for the application process

Timing issues with applications

Mistake #2: Wrong timing during the application process. Many producers underestimate the processing times.

Critical milestones:

• Provisional certificate: Must be available BEFORE production starts
• Final certificate: Within 6 months after the end of production
• 18-month deadline: Final certificate within 18 months after provisional certificate

My timing recommendation:

Tax pitfalls

Mistake #3: Insufficient tax planning. Many producers only focus on cashback and overlook the tax implications.

Typical tax pitfalls:

• No Maltese company: Cashback is only available for Maltese companies
• Ignoring substance requirements: Malta demands real economic activity
• Double taxation: Cashback taxed in both countries
• Withholding tax overlooked: On distributions abroad

How to optimize your tax structure:

1. Set up Maltese company in time: At least 4 weeks before production starts
2. Build substance: Office, local staff, real activities
3. Use DTTs: Double tax treaties between Malta and your home country
4. Professional advice: Involve tax advisers with Malta expertise

Especially important: Keep clean documentation for all tax decisions. Tax authorities tend to take a closer look at larger amounts.

Frequently Asked Questions about Malta Film Incentives

Can German companies also apply for Malta Film Incentives?

Yes, but only via a Maltese company. You need to set up a local production company or cooperate with a Maltese partner. Cashback is paid exclusively to Maltese entities.

How long does it take to receive cashback payment?

After submitting all documents for the final certificate, the review takes 6-8 weeks. The payment is then made within 90 days of approval. In total, you should allow 4-6 months after the end of production.

What is the minimum spend required in Malta?

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

Can I combine Malta Film Incentives with other subsidies?

Yes, that’s possible. Malta Film Incentives can be combined with EU funding programs, national film funding, and private investors. What’s important is the correct tax treatment of all subsidies.

Do I have to pay tax on the cashback?

Yes, the cashback is taxable income in Malta. However, you benefit from the Maltese refund system with just 5% effective tax on distributed profits. For larger amounts, professional tax planning is recommended.

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 accounting, shooting day logs, bank statements.

Can I use the subsidy for YouTube content?

Yes, digital content is subsidized at 40% with a minimum spend of €50,000 in Malta. This makes Malta particularly interesting for high-quality YouTube productions, online series, and social media content.

What happens if I dont meet the minimum spend?

Then you will not receive cashback. The Malta Film Commission thoroughly checks whether all requirements are met. So plan a buffer in your budget and get advice in advance.

Do I need a local partner in Malta?

Not necessarily, but it’s recommended. An experienced local partner knows all the regulations, has established contacts, and can save you a lot of time and effort. The costs for this are usually much less than the benefits.

How does the cultural test work in practice?

You need at least 16 out of 35 possible points. Simply using Maltese locations (4 points), local crew (6 points) and post-production in Malta (6 points) already earns 16 points. The test is therefore quite achievable in practice.