Basque Country's tax incentives and luscious landscapes are an appealing destination for productions

Since January 1, 2023, the Basque Country has offered one of Europe’s most attractive film tax incentives: a 60% rebate if more than 50% of production expenses are incurred locally, and 40% if expenses range between 20% and 35%. In comparison, the rest of Spain offers tax incentives between 25% and 35%, with the Canary Islands a notable exception, offering rebates between 45% and 54%.

Several international productions filmed in the Basque Country in 2024, including Christopher Hool’s Spicy Will from Mexico’s Studio 33; Lasse Hallström’s Amazon MGM Studios-produced The Map That Leads To You; Mason Howard’s U.A.P.; Denis Rabaglia’s TV series In Salt Water for Swiss public broadcaster RTS; Toby Frow’s Catch You Later from Clapperboard Stories; and selected scenes from Vince Gilligan’s currently untitled new series for Apple TV+.

Filming on Catherine Zeta-Jones revenge thriller Kill Jackie began in March, expecting to last six months and taking in Bilbao, the Basque region, London and Wales. The series is produced by Prime Video, Fremantle and Steel Springs Pictures. “There are many factors that make shooting in the Basque Country an appealing opportunity,” says producer Peter Lawson of Steel Springs, who praises top-tier infrastructure such as EITB Stage 5 studios in Bilbao. “Creatively, the region offers a combination of stunning and diverse landscapes. With a strong technical expertise base, attractive tax incentives and enthusiastic support from local authorities, the region offers a seamless and cost-effective choice for high-quality production.”

Jose Luis Escolar’s Calle Cruzada provides local production services on Kill Jackie, which is estimated to generate around $32.1m (€30m) in the region.

Notable Spanish productions to have recently filmed in Bizkaia include Iciar Bollain’s I’m Nevenka, Julio Medem’s 8, Juanma Bajo Ulloa’s El Mal, Miguel Angel Vivas’s La Tregua and Maspalomas by Jose Mari Goenaga and Aitor Arregi, which also shot in San Sebastian — a common practice for many productions that alternate locations among the three Basque territories. U.A.P. filmed in Bizkaia and Alava, even though its story takes place in the US on Independence Day.

San Sebastian also hosted four TV series and 10 features, among them Gabriel Beristain’s The Gentleman, starring Ron Perlman, and Undercover, an action thriller from Arantxa Echevarria.

Rebates rise to 70% (the highest in Europe) for projects shot entirely in the Basque language. There is no cap on the deduction or minimum tax liability. Incentives apply to national and international features, shorts, series, animation, documentaries and new formats, provided they meet cultural criteria. The deduction is capped at 50% of total production costs, or 60% for European co-productions.

While minor variations exist among the three Basque territories, Bizkaia and its capital Bilbao have been particularly active in attracting international shoots. One reason, suggests Escolar, is that “Bilbao is a financial hub with privileged connections to Europe and the Atlantic axis, which also facilitates the search for private investors”.

According to official data, employment in Bilbao-Bizkaia’s audiovisual sector has grown by 50.5% over the last decade, while the number of companies has increased by 57.7%. These developments are having a profound impact on both national and international productions. In 2024, Bizkaia registered 28 feature film shoots and 11 series, compared to 12 films and seven series in 2023, and just five films and five series in 2022. Alava registered 20 film shoots in 2024 — a significant increase on just five in 2023.

Nestled along the eastern Cantabrian coast and sharing a border with France, the Basque Country covers more than 7,200 square kilometres with a population of 2.2 million people. It is home to one of Europe’s oldest cultures, and its landscape resembles Brittany or Wales — though with a sunnier climate — blending ancient villages and revitalised industrial centres.

Bilbao is a prime example of this transformation, symbolised by the iconic Guggenheim Museum. Architect Frank Gehry also left his mark, with the dramatic Marques de Riscal Hotel in Rioja Alavesa. The region is well-connected: frequent flights from Bilbao and San Sebastian to London take less than two hours, and just 70 minutes from Madrid or Barcelona.

Looking ahead, Bilbao City Council and the Provincial Council of Bizkaia are developing a 1.1 million square foot audiovisual hub in Punta Zorrotza, three kilometres from the Guggenheim. Some areas are already in use although full facilities will not be operational until next year.