CONECTA: Despite not having its own tax incentive for production, the Spanish region of Castilla-La Mancha attracted 70 film and TV productions last year. Regional minister Patricia Franco spoke to C21 here in Cuenca about how the incentives issue might be changing soon.

Minister Patricia Franco at the opening of Conecta

Spain offers a competitive national rebate for international film and TV productions, granting 30% on the first €1m (US$1.2m) of eligible spend and 25% on remaining expenditure. To qualify, productions must spend at least €1m in Spain (reduced to €200,000 for animation and post-production), with a maximum rebate of €20m per feature film and €10m per series episode. At least 50% of expenditure must occur on Spanish territory.

On a regional level, the Canary Islands also offer one of Europe’s most generous incentives: up to 50% (rising to 54% for spends above €1.9m) on the first €1m and 45% thereafter, with caps of €36m per film and €18m per series episode. Navarre provides a regional tax credit of up to 35% of local production expenditure for service companies on foreign productions, with a cap of €5m per project. A special deduction of 50% applies to the first €3m for local productions/coproductions.

Other Spanish autonomous regions such as Bizkaia, Gipuzkoa and Álava offer smaller incentives – generally between 25% and 60% – although these are subject to distinct local requirements. The Basque region, for instance, offers 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%.

To access these incentives, productions must collaborate with a Spanish-registered production service company and secure cultural certification from the ICAA or regional authorities. Qualifying costs include domestic crew, technical services and cultural expenditure. Applications are submitted via the corporate tax return of the service company and are typically processed between 12 and 24 months after audit.

But while some of Spain’s regions enjoy healthy incentives for international producers, Castilla-La Mancha has attracted several major productions without a regional tax incentive on offer. The region, which is playing host to the ninth edition of the Conecta Fiction & Entertainment conference this week, welcomed some 70 audiovisual productions last year.

This year looks set to eclipse that figure, according to data for the first part of 2025. Opening the Conecta event at a sunset cocktail in the picturesque city of Cuenca, Patricia Franco, the regional minister of economy, business and employment for Castilla-La Mancha, announced that for the first four months of the 2025 the region has hosted 44 audiovisual productions.

Some scenes of AMC hit The Walking Dead were shot in Castilla-La Mancha

Franco described Cuenca as “a World Heritage city” that has been the setting for recent major productions such as AMC zombie drama The Walking Dead and movies such as Captain Alatriste (2006), and films in franchises such as Conan the Barbarian, Terminator and James Bond.

“The government of Castilla-La Mancha is here to give you support,” Franco told the Conecta crowd last night. “We launched our Castilla La Mancha Film Commission in 2017 and we have more than 1,000 locations waiting for you all.”

Speaking to C21 after her speech opening the event, Franco explained how Castilla-La Mancha is attracting so many productions despite not having its own tax incentive. “It’s because we’re very close to Madrid, the capital of Spain, but we have many diverse landscapes and a lot of heritage,” she said. “So close to the main city of Spain, you can find so many locations that are good for shooting, like castles, landscapes, hospitals, airports – anything you may think you would need for shooting.”

This strategic positioning of the region allows for filming flexibility and the local government has developed a comprehensive support system, working with 1,000 municipalities to streamline administrative and logistical processes for international productions.

Beautiful locations, convenient transport options and a regional government “that looks after all the logistics,” says Franco, go some way to explaining the level of productions shooting in Castilla-La Mancha. But nevertheless she acknowledges the competition in attracting international productions, even within Spain, particularly regarding financial incentives.

“We’re trying to settle our incentives with the finance ministry. It’s true that we do not have the incentives that the Canary Island or the Basque country have, but hopefully we can find a solution for the future. We’ll try to settle the incentives issue soon because we know this is a weak point for having more productions coming to Castilla-La Mancha.”

Regarding the process of securing similar incentives to what is available in other regions of Spain, Franco explains: “We have to stay within European legislation. I’m trying to tell the Spanish government that the Canary Island is having very special incentives because of the unique conditions of the region, but in Castilla-La Mancha we have other needs.

“For example, if the population in our small villages could also have the same opportunities, if the incentives could be as generous as some other areas in Spain, then competing on a level playing field would be also good for us and would result in more people coming and shooting here.”

Locating this week’s Conecta Fiction & Entertainment conference in beautiful Cuenca – the fourth edition of the event to be held consecutively in Castilla-La Mancha – is certainly a smart way to promote the region to international producers.