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Incentives to work in Serbia are stacking up

Ed Waller

Ed Waller

15-08-2024
© C21Media

International thriller Cicatriz (Scar) coproduced by Telekom Srbija

Milica Božanić, executive director at the Serbia Film Commission, outlines the incentives on offer in the Balkan country, the impact they have had and the recent productions that have taken advantage of them.

Serbian content is on the rise, with edgy dramas from the country finding new homes internationally, new production studios like Firefly launching to lure producers to the territory and more coproductions being forged.

Milica Božanić

While Serbian dramas like Civil Servant and Children of Evil are travelling abroad – courtesy of Indian distributor GoQuest Media and Beta Film of Germany respectively – Telekom Srbija is partnering RTVE and Amazon Prime Video in Spain on innovative thriller Cicatriz (Scar). Meanwhile, Firefly recently filmed Second World War drama series Constantine’s Crossing at its new state-of-the-art studio complex in Serbia, with France’s Mediawan Rights on board as distributor.

Things are evidently warming up for the TV production sector in the country as more international partners look to tap into its talent pool and production infrastraucture. Milica Božanić, executive director at the Serbia Film Commission (SFC), outlines the incentives on offer.

What financial incentives are currently available from the SFC for international producers working in Serbia?
The Serbian government and the ministry of culture have been implementing a film incentive programme offering 25% rebates to international producers since 2016. This year the allocated total budget for the programme is nearly €19m [US$21m] and is open to feature films, TV series, documentaries, animation and partial or complete post-production services done in Serbia. A special feature of this programme is its openness to a special-purpose film, including TV commercials format. This has helped Serbia attract high-end advertising projects and draw on its talent pool in this area as much as in feature-length projects.

How do these incentives differ for film, TV drama, animation and documentary?
The key difference in the incentive requirements for different formats is the qualifying minimum spend, which is as follows:

• Feature films, TV films and TV series: €300,000, with €150,000 minimum per episode for TV series;
• Animated film, audio and/or visual post-production: €150,000;
• Special-purpose film/TV commercials: €150,000;
• Documentary films: €50,000.

While all projects enjoy a 25% rebate rate, those that manage to spend over €5m get a higher rate of 30%. There is also a lower percentage rate of 20% that is aimed at TV commercials.

Three seasons of London-set period drama Miss Scarlet & the Duke have been filmed in Serbia

How are these incentives expected to change in the coming year?
Together with the Faculty of Economics in Belgrade, the SFC has conducted economic impact studies monitoring the effectiveness of the programme. We also provided recommendations to policymakers on how to keep the programme competitive internationally, but also how to support the spill-over effect into the national film industry.

Some of these recommendations include fine-tuning the bylaws, while others refer to inclusion of new formats and support to developments in the audiovisual sector, such as XR [extended reality], gaming and other non-linear content. The great thing about the Serbian incentive programme is that every year some small changes are adopted. The ministry of culture has the final word, but the success of the programme is a solid base for its stability and continuation.

Serbia has hosted four seasons of The Outpost for SyFy

Are there any genres on which the SFC is particularly focusing?
The economic principle of the incentive programme keeps it open to all projects, irrespective of genre. However, the location offer and cost-effectiveness within the existing film infrastructure have been greatly beneficial for mid-size budgets and films in the dystopian, thriller and horror genres. Fantasy, sci-fi and period TV series are other types of projects that we have seen thrive.

What recent TV shows have been produced in Serbia using these incentives?
We are happy to have resident TV shows that have chosen Serbia for its hub season after season. After four seasons of The Outpost (SyFy), Serbia has hosted two seasons of The Ark (SyFy), as well as three seasons of Victorian London drama Miss Scarlet & the Duke (PBS). Upcoming shows include the Amazon series Citadel, with its Indian instalment, Honey Bunny, being shot in Serbia, as well as Spanish-Serbian-Polish coproduction Cicatriz.

Another gem that just got released is the Apple TV+ docuseries Omnivore. The opening episode was shot in Serbia and launches the quest for the world’s hottest chilli, hosted by renown chef Rene Redzepi. We are expecting several other titles to come out this autumn/winter.

SyFy’s outer-space sci-fi drama The Ark

How do these incentives fit into the broader economic and cultural mission for the SFC?
As an industry-based organisation, our mission has been accomplished, with a thriving film industry sector and expansion of studio facilities, new services and technology on offer, as well as the growth in skills and overall visibility of the sector to policy makers in the country, and also to international peers. The cultural mission is [to ensure] the mobility of talent in all departments, in front of and behind the camera, as new coproduction partnerships are forged that tap into both incentive and national funding. In that regard, incentives are a second pillar of funding for projects with international ambitions, as they are open to Serbian projects as much as international ones.

How have these incentives benefitted the local production community?
Our economic impact analysis shows that since the introduction of the incentives we have seen 33% growth in employment in the sector and 63% in the number of companies. The incentives have directly stimulated investment in infrastructure in the past five years, with new studios such as Firefly opening as well as post-production facilities like Hub247.

The first episode of Apple TV+ docuseries Omnivore was shot in Serbia

How has the global economic situation impacted production levels in Serbia?
The global production halt has had some impact on the levels of production here, but with the vibrant local TV production the blow was partly softened. Across various production aspects, we see a change in the type of projects that come to Serbia, their size, how they are structured and the expectations of the project. For a small country like ours, our portfolio of projects is very diverse and we hope that will allow us adaptability in any given situation.

Are there any timelines or deadlines that international producers should be aware of?
The incentive programme is open for applications all year round, so the deadlines are not as strict and the only deadline international producers should have in mind is September 30, as this is a closing day for completed projects to submit their request for payment. However, missing this deadline only postpones you to the next calendar year, so it is a matter of internal planning rather than a dealbreaker.