Incentives Make the World Go Round: The Basque Country’s Production Surge

Tax incentives fuel film production and the Basque Country is no exception. Already boasting attractive incentives, its region of Bizkaia has raised the bar, now offering among most competitive tax breaks in Spain. With up-to-70% tax deductions, the impact has been immediate. Variety has reported previously a fourfold increase in production in 2023 alone, and the pipeline of projects shows no sign of abating.

Riding the Wave of Incentives and Support

“The tax incentives have given us a significant boost, enabling both regional creations and attracting productions from outside the region. This has been a game-changer for the industry, fundamentally altering the production landscape in just a few years,” says Koldo Zuazua, a leading Basque producer with Kowalski Films. The allure isn’t just financial; it’s transforming the quality and scale of projects as well. High-profile TV shows like “Querer” and Iciar Bollain’s latest film “Soy Nevenka” both at San Sebastian, exemplify this shift.

Animation Upswing: Local Talent, Global Stories

One of the region’s thriving sectors is animation. Alberto Vázquez’s “Decorado,” one of the latest co-productions from UniKo, follows last year’s “Sultana’s Dream” and the Goya-winning “Unicorn Wars,” pushing the studio’s Goya tally to six. “Our strategy has always been to work locally with a global perspective. We leverage local talent in Bilbao to tell universal stories that resonate globally, allowing us to create high-quality content that stands out beyond our borders,” UniKo CEO Ivan Miñambres said. “Animation allows us to maintain a fixed base without the need for constant travel for each shoot.” The notable surge in global animation box office will only bolster production in the years to come.

Power of Partnerships: Local Meets Global

Across Europe, co-productions are key, and Basque producers have become adept at navigating them. With the tax incentives sweetening the deal, the region has gained influence in both Spanish and international projects. “Tax incentives have opened doors for co-productions with companies across Spain and internationally. This has allowed us to scale up, moving from being minority co-producers to playing a more significant role in larger projects,” Zuazua explained. Leire Apellaniz from boutique production house Señor y Señora, a co-producer on Toronto Platform nominee “Daniela Forever” and the critical darling “Samsara,” echoes this, noting that collaboration with top Basque companies like Irusoin and national partners such as The Mediapro Studio and Apache Entertainment have expanded their ambitions.

Breaking Boundaries: Innovation at the Heart of Basque Cinema

Every region has a unique soul — born of its history, nurtured by its stories, and expressed through its cultural output. But to turn heads, you need to push. “Our productions are defined by narrative risks and a drive to innovate, exploring new cinematic languages and subverting genres. We don’t see a risk of becoming too focused on replicating past successes; our upcoming projects continue to push boundaries,” Apellaniz said.

Growing Pains: Navigating Talent Shortages Amid Surging Demand

The challenges of survival are gone, but the challenges of growth are apparent to all. “There’s significant rising costs of production as demand increases. The influx of projects has driven up rates for technicians and talent, and the cost of accommodation is a growing concern,” notes Xabi Berzosa, head of Irusoin whose latest “Marco” closes the festival’s best of fests Perlak section out of competition. The cities, Bilbao, San Sebastian and Vitoria-Gasteiz are vibrant but not vast. “This is not a huge territory, and we don’t have 20 DPs and 100 production teams. The number of people here is what it is, and getting a good production team for your own project takes a lot more time than some years ago,” Berzosa said.

Talent Pipeline: Cultivating the Next Generation of Filmmakers

One solution to the growing pains lies in education and networks encouraging talent not to leave for Madrid or Barcelona. “Although there’s abundant talent in the Basque Country, especially among women, institutions need to economically and industrially strengthen small and medium-sized producers to build a robust industrial network capable of supporting the sector’s growth,” Apellaniz said. The upcoming 1.1 million-square-foot audiovisual hub in Bilbao, featuring digital sets, studios, and post-production spaces, will likely go someway to boost the confidence of aspiring talent and investors. Other initiatives, such as Talentuaren Gunea– a Talent Day – a pivotal initiative by promotion org Zineuskadi, are more based on growing grass roots. 

Future Proofing: Sustaining Growth and Expanding Horizons

While incentives, infrastructure, and education are crucial, the true measure of success and confidence in its future will be the quality of films and their impact beyond the region. “I strongly believe in the power of divergent films to transform society. Our region is seizing the opportunities provided by financial policies to promote environmentalism, anti-racism, feminism, and diversity through film,” Apellaniz said.

Other regions are taking note and may adopt similar tax policies, but Basque producers see opportunity rather than risk. “The key to sustaining this growth will be finding a balance once other regions in Spain adopt similar tax incentives. While we might see a decrease in production volume, this should help stabilize costs and ensure that the Basque Country remains a competitive and appealing location for high-quality film production,” Zuazua concluded with the level headedness any good producer needs.

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