Film Industry in Malta: Tax Incentives and Support for International Productions

What Makes Malta So Attractive for Film Productions?

Imagine getting a quarter of your production costs back from the government—in a country with 300 days of sunshine a year, English-speaking administration, and EU legal security. Sounds too good to be true? It isn’t.

The 25% Cash Rebate Program Explained

The heart of Malta’s film incentives is its Cash Rebate Programme. The name says it all: You get 25% of your qualifying expenses in Malta back—paid in real cash. Not as a tax credit you’ll have to wait years to use, but as a direct payout.

Qualifying expenses include everything directly related to production in Malta:

• Salaries and wages for Maltese personnel
• Equipment rental from Maltese companies
• Studio rental and location fees
• Transport, catering, and accommodation
• Post-production services from Maltese providers

The minimum threshold is €500,000 spent in Malta. That means you must spend at least half a million euros locally to get the 25%. For larger productions, that’s usually no issue—the savings speak for themselves.

Additional Tax Benefits and Tax Credits

But the cash rebate is just the start. Malta also offers a system of tax credits that can drastically reduce your effective tax rate on Maltese profits.

Malta’s tax system works with a full imputation system. Sounds complicated, but it simply means: When your Maltese production company pays tax, shareholders can fully deduct this when dividends are paid out.

Here’s what it looks like in practice:

So you effectively pay only 5% tax on film production profits. That’s unique in Europe.

Why Hollywood Loves Malta

I’ve just come back from a walk through Valletta, where they were shooting a Netflix series last week. Streets blocked off, lights everywhere, and the crew was loving the perfect sunlight. You see this happen here at least once a month.

Hollywood loves Malta for three reasons:

1. Diverse locations in a small area: You can shoot medieval alleys in the morning, the azure sea in the afternoon, and futuristic glass buildings in the evening—all within a 30-minute drive.
2. Established infrastructure: The Mediterranean Film Studios in Kalkara are world-class, featuring underwater tanks and backlot sets.
3. Experienced local crew: After years of growth, Malta boasts seasoned crews used to international standards.

There’s also a pragmatic factor: Malta is in the EU, with rule of law and political stability. None of the worries about sudden law changes or currency risks you find in other “budget” production locations.

Malta Film Commission: Your Partner for Successful Productions

The Malta Film Commission is your first point of contact for everything related to film incentives. I’ve been there myself several times—the team is based in Valletta, speaks flawless English, and knows the ins and outs of international productions. But be aware: Maltese bureaucracy has its quirks.

Step-by-Step Application Process

The application for the Cash Rebate Programme follows a standardized procedure. I recommend starting at least 8–12 weeks before filming—more if your production is complex.

Phase 1: Provisional Certificate (6-8 weeks before shooting starts)

1. Submit the completed application form with script and budget
2. Proof of financing (bank confirmations or investor letters)
3. Detailed production plan with Maltese expenditures
4. Review by Malta Film Commission (4–6 weeks)

Phase 2: Final Certificate (after completion of production)

1. Submission of all expense receipts
2. Audit by certified Maltese auditors
3. Cash rebate payout (6–8 weeks after audit)

Practical tip: The Malta Film Commission will scrutinize whether your planned expenses really are qualifying expenses. Work with a local lawyer or tax advisor from the start—it’ll save headaches and time down the road.

Which Costs Qualify?

Not all expenses in Malta are automatically eligible. The Malta Film Commission makes a strict distinction between “qualifying” and “non-qualifying” expenses.

Eligible Expenses (Qualifying Expenses):

• Salaries for Maltese personnel (EU citizens or with work permits)
• Equipment from Maltese rental companies
• Studios, locations, and set construction in Malta
• Transport, catering, accommodation during the shoot
• Post-production at Maltese service providers
• Insurance premiums for Maltese policies

Not eligible (Non-Qualifying):

• Salaries for foreign stars without Maltese residence
• Equipment brought in from abroad
• Development costs and rights acquisition
• Marketing and distribution
• Financing costs and bank fees

A common mistake: Many producers factor in 25% on their total budget. In reality, the 25% only applies to the Maltese share of qualifying expenses.

Timeline and Deadlines

Malta has clear deadlines for incentive applications. Missing them means missing out—no matter how much you spend in Malta.

Pro tip: The 90-day rule for expense documentation is enforced strictly. I know productions that lost their 25% because they submitted receipts too late. Hire a Maltese bookkeeper from day one—it’s the best investment you’ll make.

Practical Requirements for Film Incentives

Now for the practicalities. The Malta Film Commission has some concrete minimum requirements you must meet. I’ve seen producers realize just before filming that they didn’t hit the mark—and lose the cash rebate as a result.

Minimum Spending and Funding Conditions

The magic number: €500,000. That’s the minimum you need to spend in Malta to qualify for the 25% cash rebate. But beware—it’s qualifying expenses, not your total budget.

Sample calculation for a €2 million production:

Cash rebate: €650,000 × 25% = €162,500

As you can see: Out of a €2 million budget, about a third is spent in Malta, but only €650,000 is rebate-eligible. That’s still a solid return of over €160,000.

Malta Share: How Much Needs to Happen On Site?

There’s no fixed percentage of shooting days required in Malta—but there are practical minimums. You have to show that a substantial part of the production takes place on the island.

The Malta Film Commission assesses this using three criteria:

1. Shooting time: At least 3–4 weeks of main production in Malta
2. Expenditures: At least 30% of your production costs on the island
3. Crew: Significant proportion of Maltese/EU crew members

A typical setup: International production with 6 weeks of shooting, of which 4 weeks are in Malta. The star comes in for scenes in Malta, but most of the crew is Maltese or EU-based. Post-production is partly in Malta, partly in the home country.

Documentation and Proof

This is where the wheat is separated from the chaff. Malta requires a seamless record of all expenses—according to Maltese accounting standards.

What you’ll need:

• All invoices with Maltese VAT (18%)
• Payrolls with Maltese social security contributions
• Bank statements for all Malta-bound payments
• Contracts with Maltese service providers
• Time sheets and call sheets as proof of shooting days

The audit is conducted by an auditor approved by the Malta Film Commission. This costs an extra €5,000–15,000, depending on your production’s complexity. No audit, no cash rebate—it’s non-negotiable.

My advice: Hire a Maltese bookkeeper during pre-production. He might cost €2,000–3,000 a month, but he’ll make sure your paperwork is flawless. I’ve seen productions lose €50,000 in rebates over invoice errors.

From Game of Thrones to Gladiator: Success Stories

Malta has become the backdrop for some of the biggest blockbusters of recent years. I was there when they shot Game of Thrones in Valletta—the whole city was buzzing, and the local economy felt the benefit for months.

Blockbuster Productions and Their Malta Experience

Game of Thrones used Malta as King’s Landing and Pentos.

Other well-known productions in Malta:

• Captain Phillips: The pirate scenes were shot in Malta
• Murder on the Orient Express: Kenneth Branagh used Maltese locations
• The Count of Monte Cristo: Classic adaptation using Maltese fortresses
• World War Z: Brad Pitt fought zombies in Valletta

What these productions have in common: They came to Malta not just for the cash rebate, but for the unique locations. You can’t rent 400-year-old fortifications everywhere—but you can in Malta.

What Smaller Productions Can Learn from the Big Ones

You don’t need a Hollywood budget to benefit from Malta’s incentives. I know smaller productions that planned cleverly and saved plenty.

Success Strategy 1: Use Co-Production

Many smaller productions partner with Maltese co-producers, gaining access to local crew and equipment, better conditions for locations, and often additional EU grants.

Success Strategy 2: Move Post-Production to Malta

Not all Malta expenses need to be during shooting. A German-Maltese co-production moved 60% of its post-production to Malta to hit the €500,000 threshold—a great move for VFX-heavy projects.

Success Strategy 3: Bundle Multiple Projects

An American documentary producer did three smaller projects in Malta over 18 months. Individually, they wouldn’t meet the minimum spend, but combined they spent over €1 million and secured €250,000 in cash rebates.

The secret: Malta is flexible if you plan long-term and create real economic activity on the ground.

Malta vs. Other EU Locations: The Comparison

Malta is competing not just with Hollywood or Vancouver but with other EU countries for international productions. I’ve talked to producers who compared Malta to Ireland, the Czech Republic, or Croatia. Here’s the honest rundown.

Tax Benefits in European Comparison

Ireland may offer the highest theoretical cash rebate (32%), but Malta scores with its 25% rebate plus an effective 5% corporate tax rate—making it often more affordable for profitable productions than Ireland.

Production Costs and Infrastructure

Malta’s production costs are mid-range by European standards. Crew costs are higher than in Eastern Europe but lower than in Germany or the UK.

Average Daily Rates (2025):

• Director of Photography: €800–1,200
• Camera Assistant: €350–500
• Gaffer: €600–800
• Script Supervisor: €400–600
• Location Manager: €500–700

Equipment rental rates are similar to Western European levels. Malta has several professional rental houses with ARRI Alexa, RED, and Sony FX gear.

Malta’s Advantages Over the Competition:

1. Legal certainty: EU member with stable legal framework
2. Language barrier: English as an official language
3. Weather: 300+ sunny days, reliable shooting conditions
4. Diversity: Medieval to modern on 316 square kilometers
5. Infrastructure: Professional studios and experienced crew

Malta’s Disadvantages:

1. Size: Limited options for large-scale outdoor scenes
2. Capacity: Only 2–3 major productions possible at once
3. Cost: More expensive than Eastern Europe or North Africa
4. Logistics: Shipping in equipment takes longer

Common Pitfalls and How to Avoid Them

After two years in Malta, I know the typical traps international productions fall into. Some are pure bureaucracy, others cost real money. Here are the most important ones—and how to dodge them.

Bureaucratic Hurdles and Solutions

Pitfall 1: Work Permits for Non-EU Crew

Malta is an EU member, but non-EU citizens need work permits. This takes 4–6 weeks and costs €230 per person. Many producers forget this in their scheduling.

Solution: Apply for work permits as soon as you have the Provisional Certificate. The Malta Film Commission can arrange express processing in urgent cases (10 business days, €500 extra).

Pitfall 2: Filming Permits for Public Spaces

Valletta, Mdina, and other historic sites require separate filming permits—sometimes from multiple authorities, which can take time.

Solution: Work with a Maltese location manager who knows the system. Allow 2–3 months lead time for complex locations like Valletta.

Pitfall 3: Equipment Import

Equipment from non-EU countries (USA, UK) requires carnet documents and can get stuck in customs. I’ve seen a US production wait a week for their cameras.

Solution: Rent equipment from Maltese rental houses or EU suppliers. It’s often cheaper, safer, and counts towards qualifying expenses.

Budget Planning and Hidden Costs

The cash rebate is tempting, but Malta also hides some costs that can impact your budget.

Hidden costs often overlooked:

Expect 3–5% extra Maltese-specific costs. Sounds like a lot, but with a 25% rebate, it’s still worth it.

Budget tip: Draw up two budgets—one for the whole production, one for Malta-only costs. It keeps the cash rebate calculation transparent and simplifies financing talks.

A typical Malta budget for a €2 million production:

• Direct Malta production costs: €650,000
• Additional Malta costs: €25,000
• Cash rebate (25%): –€162,500
• Net Malta costs: €512,500

So you’re effectively only paying 78% of your Malta expenses—there’s no better deal elsewhere.

The Future of the Film Industry in Malta

Malta is making massive investments in the film sector. I see it every day: new studios, crews becoming more professional, and the government planning further incentives. But there are challenges, too.

New Developments and Planned Changes

The Maltese government announced in 2024 that the Cash Rebate Programme will be extended until 2027—with possible increases for environmentally friendly productions (Green Film Incentive). Productions that meet sustainability criteria could receive a 27% rebate instead of 25%.

Criteria for the Green Film Incentive (planned from 2026):

• CO₂-neutral crew travel (offsetting)
• Use of renewable energy on set
• Zero-waste catering
• Local equipment rather than imports
• Recycling of set materials

This isn’t official yet, but Malta is following the EU’s trend towards sustainable filmmaking.

Investment in Studios and Infrastructure

Malta is planning a second large studio complex in Hal Far (south of the airport). Budget: €50 million, opening planned for 2026. This would double Malta’s studio capacity and allow for 4–5 simultaneous large-scale productions.

Further planned investments:

• Underwater studio: A world-unique facility for maritime scenes
• Virtual production stages: LED walls for state-of-the-art VFX
• Post-production hub: Competing with London and Dublin
• Film education: Bachelor’s in Film at the University of Malta

The goal is clear: Malta aims to become the leading film hub in the Mediterranean. The incentives are only the beginning—long-term, a full-scale film industry is set to develop.

For you, that means Malta is a stable partner for years to come. The rebate program is not just a short-term lure, but part of Malta’s broad economic strategy.

My verdict after two years in Malta: The film incentives work, the bureaucracy is manageable, and the island is developing at pace. If you’re planning a production that suits Malta, there are few better options in Europe.

Malta is ready for your next production—are you ready for Malta?

Frequently Asked Questions about Malta Film Incentives

Can I, as a German production company, apply directly for the Maltese cash rebate?

Yes, German and other EU production companies can apply directly to the Malta Film Commission. You don’t need to set up a Maltese company, but you should hire a Maltese tax advisor to coordinate the process.

How long does it take to receive the cash rebate?

Once all documentation and the audit are complete, payout takes 6–8 weeks. Plan this into your financing—the money is paid after wrap, not before.

Do hotel and catering costs for foreign crew count as qualifying expenses?

Yes, accommodation and catering in Malta during shooting fully count as eligible expenditures—including for foreign stars and crew members.

Can I combine several smaller projects to reach the €500,000 minimum spend?

Yes, if the projects are produced within 18 months and by the same company. Each project still needs a separate application with the Malta Film Commission.

What happens if I just miss the €500,000 minimum spend?

No rebate. The threshold is strict—spend €499,000 and you get nothing back. Always plan a 10–15% buffer above the minimum.

Do I have to employ Maltese crew to get the cash rebate?

No, there is no quota for Maltese crew. But salaries for Maltese or EU-based crew do count as qualifying expenses; salaries for non-EU stars generally do not.

Can I bring equipment from Germany and still get the cash rebate?

You can bring equipment, but only Malta-based equipment spending (rental from Maltese companies) counts towards the cash rebate. Shipping German gear to Malta doesnt qualify.

Are there additional EU grants I can use in Malta?

Yes, Malta participates in MEDIA (EU support program) and other EU schemes. Many productions combine the Maltese cash rebate with EU grants—up to 40% combined funding is possible.

How much does the mandatory audit for the cash rebate cost?

Between €5,000 and €15,000, depending on how complex your production is. Larger productions with many international partners pay more, smaller ones less.

Can I get the cash rebate for documentaries?

Yes, the cash rebate program applies to all kinds of films and TV productions, including documentaries, commercials, and music videos. But the €500,000 minimum spend applies across the board.