What Iceland actually pays
The state pays cash against qualified spend. No tax liability needed, no broker, no discount — the cleanest structure for an independent production.
New to the mechanics? Tax credit vs rebate vs grant and What counts as qualified spend.
What qualifies
Refundable cash reimbursement of 25% of eligible Iceland production costs (no minimum spend for the base rate). Enhanced 35% rate for large productions meeting all of: >= ISK 350M (~EUR 2.5M) Iceland spend, >= 30 working days in Iceland (>=10 shoot days), and >= 50 crew working >= 50 days, all salaries taxed in Iceland. Also a 35% route for children's/youth content with no minimum spend. If >80% of total cost is incurred in Iceland, reimbursement is computed on EEA-wide cost. Excludes commercials, music videos, news, short films, sports/entertainment recordings, and own-platform content.
- Animation
- Documentary
- Scripted TV
- Feature Film
How to apply
Submit the application to the Film Production Reimbursement Committee, seated at Kvikmyndamiðstöð Íslands, before production begins in Iceland. The project must score at least 4 points in the cultural section and 23 points overall on the regulation's project test. Principal production must start within one year of the letter of intent, with one extension possible, and approval lapses if production is not completed within three years. Request payment within six months of the end of production (no later than the premiere, or the premiere of the last episode for a series); an auditor must attest the cost report when the reimbursement exceeds ISK 3 million.
The rule to remember
Apply before production starts in Iceland, through a company operating the production in Iceland or an Icelandic branch of an EEA-registered company; only costs paid to parties taxed in Iceland count toward the base.
Film commissions in Iceland
The public office for location support, permits, local crew and vendors. Every one listed is a member of the Association of Film Commissioners International.
Common questions
- What is the Iceland film tax incentive rate?
- Iceland offers 25% to 35% on qualified in-state spend through the Film Production Reimbursement (Act No. 43/1999). It is a cash grant. The state pays cash against qualified spend. No tax liability needed, no broker, no discount — the cleanest structure for an independent production.
- What is the minimum spend for the Iceland film incentive?
- None for the 25% rate. ISK 350 million of production costs in Iceland for the 35% large-production rate.. Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.
- Is the Iceland film incentive transferable or refundable?
- Neither transferable nor refundable, which limits its value to productions with in-state tax liability.
Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.
Compare with
Programs in a similar rate band. The mechanism matters as much as the percentage — a transferable credit at 30% is not the same money as a cash grant at 30%.
Alabama
25%up to 35%RebateAustria
30%up to 35%Cash grantColombia
35%Transferable creditCayman Islands
15%up to 35%Cash grant
STAY CURRENT
Tracking changes to this program?
We re-verify Iceland against the film office and the statute, and write when something moves that would change a budget. One email, no cadence you didn't ask for.