Today, the government decided to increase the repayment rate of Film Estonia from 30 per cent to 40 per cent in order to strengthen Estonia's position in the international film production market.
"Changing the refund rate will increase the competitiveness of the Estonian film industry in the international market for the production of audiovisual content. This will make Estonia an attractive filming location again and bring new investments to Estonia that would not otherwise reach us. Film Estonia is a well-proven solution with a positive economic impact, which will create jobs in many sectors in addition to the film industry. Together with the film shooting pavilions in Jõhvi and Tallinn, this is an important step in the development of the field," said Minister of Culture Heidy Purga.
Launched in 2016, Film Estonia is a repayment programme managed by the Estonian Film Institute, the aim of which is to bring foreign projects to Estonia, increase the export of audiovisual services and support the economy. In ten years, the programme has brought 95 million euros to the Estonian economy and created nearly 200 jobs.
According to an analysis by the international research company Olsberg SPI, every euro invested brings back five euros to the country's economy. About 60% of the costs of projects end up outside the film sector – accommodation, catering, transport, construction and elsewhere.
Over the past four years, it is estimated that 27 projects planned for Estonia have moved to other countries. Their total volume exceeded 44 million euros, of which an estimated 27 million euros would have been spent in Estonia. A 40 percent refund will reduce the costs of producers in Estonia by approximately 14%, making Estonia an attractive filming location again.
The change is especially important in a situation where most European countries offer various refund or tax incentive schemes to foreign productions and competition for projects is fierce. The refund rate in different countries ranges from 10 to 54 per cent.
Since 2024, the budget of the Estonian programme has been 6 million euros per year. With the increase in the contribution rate, the base budget of the programme will be reduced from 6 million to 5.2 million euros, which means that the amendment will not create an additional burden on the state budget.