Hollywood shifts filming to Malta and Europe amid California’s lower tax rebates

With Los Angeles recording one of its lowest shoot days in decades and 18,000 local jobs lost, producers are turning to European countries like Malta offering up to 40% tax rebates. California’s push to raise tax credits aims to reclaim its competitive edge in global film production.

Sources:
The Guardian
Updated 1h ago
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Sources: The Guardian
Hollywood's filming landscape is shifting as productions move from California to Malta and other European countries, driven by California's lower tax rebates.

The number of productions shot in Los Angeles has plummeted, with 2024 marking one of the lowest shoot day totals in decades, second only to the pandemic year 2020. This decline is attributed to the state's tax credit reduction to 20%, making it less competitive internationally.

"It's just too expensive to shoot here," a Hollywood insider told Rob Lowe, highlighting the growing cost concerns.

European countries are capitalizing on this trend by offering more attractive incentives. Hungary and Croatia provide up to 30% rebates, Italy offers even higher rates, but Malta stands out with a 40% tax rebate, which influenced financiers' decisions.

The International Alliance of Theatrical Stage Employees (IATSE) reports that approximately 18,000 jobs have vanished in the past three years, predominantly in California, underscoring the economic impact.

In response, a coalition of Hollywood workers is advocating for California to raise its tax credits to between 25% and 35% to regain competitiveness.

This shift not only affects local employment but also signals a broader realignment in global film production, as studios seek cost-effective locations with favorable financial incentives.

The migration to Malta and Europe reflects a strategic choice by producers prioritizing tax benefits, reshaping the traditional Hollywood filming hub.

Sources: The Guardian
Hollywood productions are increasingly relocating to Malta and Europe due to California's reduced tax rebates, which have dropped to 20%. This shift has led to a decline in local filming, job losses, and calls for higher tax credits to compete with European incentives reaching up to 40%.
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It’s quiet over there – in part because it’s just too expensive to shoot here.
Unnamed Hollywood worker
The Guardian
Key Facts
  • The number of productions shot on location in Los Angeles has declined sharply, with 2024 recording one of the lowest total shoot days in decades, second only to 2020 during the coronavirus pandemic.The Guardian
  • Hollywood workers have lost roughly 18,000 jobs in California over the past three years, primarily due to production moving out of state.The Guardian
  • A coalition of Hollywood workers is advocating for California to increase tax credits for film and TV shoots from 20% to between 25% and 35% to better compete with other states and countries offering up to 40%.The Guardian
  • Producers are increasingly choosing European countries such as Malta, Hungary, Croatia, and Italy for filming due to more attractive tax rebates, with Malta offering up to 40%.The Guardian
Key Stats at a Glance
Current California tax credits for film and TV shoots
20%
The Guardian
Proposed California tax credits for film and TV shoots
25%-35%
The Guardian
Maximum tax credits offered by other states and countries
40%
The Guardian
Hollywood jobs lost in California over past three years
18,000 jobs
The Guardian
Hungary tax rebate for filming
30%
The Guardian
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