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FNE Visegrad Focus: Foreign productions in the Czech Republic

2010-02-12

The Czech Republic has seen big budget foreign productions mostly dry up in 2009 following a long decline. In 2003, Hollywood and European filmmakers spent more than 5 bilion crowns in the Czech Republic. In 2008, the amount of the foreign investments dropped to only CZK 700 million as Hollywood production move to Hungary, Romania, Bulgaria, and even the Ukraine driven away by the Czech Republic's lack of tax incentives.

In numerous European countries and American states, Hollywood filmmakers can expect a rebate of up to 20% of every euro spent in that territory.

"We love the Czech Republic for its exteriors and its filmmakers. But the problem of tax incentives becomes more and more important for every big Hollywood production, including Narnia," Mark Johnson, executive producer of The Chronicles of Narnia: Prince Caspian, said to FNE last year. Walt Disney´s $200 million smash hit by director Andrew Adamson, shot and produced in New Zealand, Slovenia, and the Czech Republic in 2007-2008, was one of the last big budget Hollywood productions shot in Czech Republic. The third part of the Narnia series is not coming back to Czech Republic.

In late October, the Czech approved a proposal for a tax incentive system in 2010, with a rebate of up to 20% of the amount spent in the country. The Czech Ministry of Culture (ww.mkcr.cz) has budgeted 400 million CZK for rebates in 2010 which is awaiting final approval and could go into effect as soon as January 2010.

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