Industry experts analyzed at CIIF Market the challenges of the new Film Law, audiovisual financing and the tax opportunities of the REF (Special Economic Regime).
- The panel addressed the impact of the new Film Law, the consolidation of the Canary Islands tax regime (REF) as an engine for attracting filming, the growing role of banks in audiovisual financing, and the challenges arising from the emergence of artificial intelligence in content creation.
Santa Cruz de Tenerife, October 29, 2025 – Within the framework of the CIIF Market 2025 (Canary Islands International Film Market) and the Tenerife Networking Day, in collaboration with the Tenerife Film Commission, leading industry professionals discussed on Tuesday the legislative, financial, and technological challenges currently facing the Spanish audiovisual industry. The session focused on the new Film Law, the evolution of the Canary Islands Special Tax Regime (REF), and the growing influence of artificial intelligence in audiovisual production.
Participants included Carmen Aguado, partner in the Audiovisual Law department at Écija Abogados and vice president of the Canary Islands Audiovisual Cluster; Fernando Rodríguez, director of International Business at Bankinter’s Canary Islands branch; and José Ramón Barrera, advisor to the Commissioner for the Economic and Fiscal Regime of the Canary Islands (Government of the Canary Islands). The session was moderated by Ana Cristina Armas, head of the Culture Department at RNE Canarias.
Following the welcome address to participants and attendees by Guillermo Ríos, director of CIIF Market, the panel, which brought together representatives from banking, legal advice and production, agreed that the sector is experiencing a moment of maturity and consolidation, although it requires continuous regulatory updates to adapt to new business models and the technological reality of contemporary productions.
The speakers noted that the new Film Law, still pending state approval, was progressing more slowly than expected due to the difficulty of legally defining the concept of independent film. Even so, they believed the law would be approved soon and would represent “a necessary adaptation to the current reality of the sector,” replacing the outdated 2007 law.
It was also noted that a ministerial order was recently approved regulating the administrative and cultural requirements for accessing tax incentives. Among these requirements is the obligation for producers to detail the degree of artificial intelligence used in their works.
Carmen Aguado emphasized that, although Spanish and European law does not yet recognize the authorship of works generated exclusively by AI —since the legislation requires that the author be a natural person—, “these types of provisions show that the sector and the regulations are moving towards a real coexistence between human creativity and technology.”
Fernando Rodríguez stated that financial institutions have increased their involvement in the audiovisual sector, especially in the Canary Islands, thanks to the strengthening of the fiscal framework and the confidence generated by the REF (Special Economic Regime).
“A few years ago, there was hardly any banking interest in film; today there are entities like Bankinter that create specific solutions for audiovisual productions.” The bank has been a pioneer in financing and specific structuring in the audiovisual industry.
Fernando Rodríguez emphasized the importance of tools such as CESCE guarantees or Mutual Guarantee Societies, which help mitigate financial risks and make it easier for banks to offer credit to producers.
“The advance payment of the tax rebate —that is, the advance financing of the tax refund that the Treasury reimburses later— has become one of the most widely used mechanisms in current audiovisual financing,” he explained.
José Ramón Barrera recalled that the Canary Islands was a pioneer in Spain in applying the REF (Economic and Fiscal Regime) to the audiovisual sector, with its first success story in 2015: the filming of Jason Bourne in Santa Cruz de Tenerife. “At that time, 4.5 million euros were granted; today the figure has risen to 36 million. This demonstrates the maturity and reliability of the system,” he stated.
In addition to detailing the characteristics of the tax incentives —a 30% deduction up to the first million euros of spending and 25% on the rest, with a limit of 20 million per feature film and 10 million per episode in the Peninsula, compared to 50% and 45% in the Canary Islands, with a limit of 36 million per film and 18 million per episode—, Barrera clarified that the path taken by the Archipelago in audiovisual matters has not only consolidated the legal certainty of the system, but has also allowed for the creation of a competitive and professional ecosystem.
“Filming in the Canary Islands also means greater profitability, thanks to the REF tax differential, which increases deductions by 20 points and expands the limits by 80% compared to the state regime, making the Archipelago one of the most advantageous destinations in Europe for audiovisual production,” he argued.
He also highlighted the introduction of the zero IGIC rate on production, which eliminated the financial costs derived from VAT and represented a substantial improvement in the competitiveness of the sector.
The councilor highlighted that those who choose the Canary Islands for filming have access to a network of first-class suppliers and auxiliary services —hotels, vehicle rental, technical staff, sets, among others—, comparable to the major international production hubs.
“The Canary Islands have established themselves as a safe destination for filming. We have a transparent tax framework, legal certainty, and experience in managing national and international productions.” He asserted that the key to success has been collaboration between government agencies, the private sector, and local professionals.
Carmen Aguado emphasized the importance of maintaining orderly and transparent accounting to properly justify tax incentives. “Tax audits shouldn’t cause fear: when producers comply with the requirements, the results are usually favorable.”
He added that Spain currently has “one of the most stable and competitive incentive systems in the world,” compared to countries such as Italy, the Dominican Republic or Colombia, and that coordination between the Tax Agency and the sector has contributed to strengthening legal certainty.
The debate concluded with a general consensus among the speakers: the REF (Special Economic Zone) continues to be an essential tool for attracting film productions and consolidating the Canary Islands’ audiovisual sector; banks and private investment have learned to understand the sector’s logic, promoting the professionalization and sustainability of productions; and legal certainty remains the central pillar supporting the growth of the audiovisual industry in the Canary Islands.
“We are at a point of legal maturity and full confidence. The Canary Islands are now an international benchmark for producing with guarantees,” the participants concluded.
The 21st edition of the Canary Islands International Film Market (CIIF Market) is being held this week in Santa Cruz de Tenerife until October 31, bringing together producers, distributors, financial agents and institutional representatives to promote co-production, investment and internationalization of film and television projects with a connection to the Canary Islands.
The market is promoted by Festeam, Communication and Events, and is sponsored by the Tenerife Island Council, through the Area of Culture, Museums and Sports; the Government of the Canary Islands, through the Canary Institute of Cultural Development, Canary Islands Film and PROEXCA; and the Santa Cruz de Tenerife City Council, through the Development Society and Macaronesia Films; with the collaboration of Turismo de Tenerife, through the Tenerife Film Commission; and the Canary Islands Audiovisual Cluster, among other entities.
