Magazine article Variety

Plan Ensures Few Go Hungary

Magazine article Variety

Plan Ensures Few Go Hungary

Article excerpt

Production costs in Hungary tend to be higher than in Romania or Bulgaria, and its infrastructure might not be as developed as in the Czech Republic, but its 20% tax scheme has considerably increased its allure as a location.

Introduced in 2004, the Hungarian Motion Picture Act has been successfully used on a number of productions, including "Eichmann," "Opium" and "Mrs. Ratcliff s Revolution."

Foreign producers have to enter a co-production agreement with a local producer, who will then get a tax certificate from the National Film Office. Once the certificate is issued, producers need to approach private investors, who will lay out the coin (the certificate is also accepted by Hungarian banks) and write off the money in their tax report.

By entering co-production agreements with local producers, foreigners can claim 20% of their Hungarian spend. After financing and service fees are deducted, this usually translates into 16%-18%. Above-the-line costs can only be reimbursed if the individual is paying tax in Hungary.

There's no limit to this plan, and since its inception it's proved successful and relatively easy to use. …

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