Iceland’s parliament has approved a boost to the country’s film production tax incentive, increasing it from 20% to 25%.
The new level will take effect from January 1, 2017 and the legislation has been renewed until 2021.
“The new 25% incentive will make Iceland more competitive on the international film production market,” film commissioner Einar Hansen Tomasson told ScreenDaily.
“With Iceland’s beautiful locations, post-production facilities, a new large scale film studio being prepared and hardworking crew members with a can-do spirit, Iceland will make for an even more attractive place for foreign productions.”
Leifur B. Dagfinnsson, chairman and founding partner of leading production services company Truenorth, told ScreenDaily: “It makes Iceland competitive again as a location destination and helps local productions in terms of their financing.
“This is a cash rebate on all costs incurred in Iceland - and if the above the line talents pay withholding tax in Iceland then producers and productions will get same rebate on their fees paid during the Iceland filming period.
“This should further enhance international co-production opportunities.”
Iceland has been a major player to attract foreign shoots in recent years, with its appeal only increasing after the economic collapse. It has become known not only for stunning locations but also highly skilled crews and sturdy infrastructure.
Recent productions to shoot in Iceland include Star Wars: The Force Awakens, Fortitude, Game Of Thrones, The Secret Life Of Walter Mitty, Noah, Oblivion, Sense8, Thor and Fast & Furious 8.
Norway had been the second Nordic country to introduce an incentive this year, a 25% rebate capped at $5.17m this year.