The Lithuanian Film Tax Incentive came into effect in January 2014 as a new policy measure to foster local and foreign film production in Lithuania.
From 2019 the Lithuanian Film Tax Incentive offers an opportunity to save up to 30% of the local film production budget through a private investment scheme.
As a foreign filmmaker, you must cooperate with one of the local production companies that will submit the application. The local production company will take responsibility for finding a local corporate donor willing to invest up to 30% of the local production budget in exchange for a reduced corporate income tax.
Film production companies may receive financial aid for filmmaking in Lithuania if their production meets eligibility requirements and they comply with the formal procedure approved by the Lithuanian Film Centre. Local corporate donors in return can deduct the amount given to the local budget from their taxable income. The estimated net profit for the donor participating in the scheme is up to 11,25%.
The incentive is available for the production of feature films, TV dramas, documentaries, and animated films. It includes domestically produced, co-produced, or commissioned films (produced under a service agreement). At least 80% of eligible film production costs (from the Lithuanian production spend) must be incurred in Lithuania and the total amount of eligible spend in Lithuania has to be no less than 43,000 EUR.
The Film Tax Incentive is only available for films that meet the approved production and content requirements. Pornographic production and films promoting violence are not considered for the Film Tax Incentive.
The film cannot be pornographic, incite violence or hatred. It has to meet at least two of the following criteria:
The film has to meet all of the following production criteria:
At least 20% of an animated film’s production costs in Lithuania must be incurred for producing two of the elements listed below: