On October 8th, Norway announced that as of 2016 a 25% tax break will be applied to TV and film production. Soon after, some major players from the US were seen in Oslo discussing the possibility of bringing projects to Norway.
“We’ve had 2-3 big projects from Hollywood coming to us and have seen an immediate increase of interest from foreign producers,” said Truls Kontny, Head of the Norwegian Film Commission.
There is, however, a NOK 45 million ceiling (around €4.8 million) set for reimbursement in 2016. Further clarification regarding rules and regulations will be announced in late November when the new scheme goes live.
Meanwhile, Norway’s new incentive puts it in direct competition with Iceland who have proved popular with Hollywood in recent years thanks to its 20% reimbursement scheme. In 2014, Iceland reimbursed ISK 1,574,307,492 (around €11 million) to filmmakers.
Einar Tómasson, Iceland’s Film Commissioner said: “I believe it [Norway’s 25% reimbursement scheme] will increase competition for certain types of projects.” However, Iceland’s Minister of Industry Ragnheiður Elín Árnadóttir has said that the current tax reimbursement scheme will expire in 2016 and that the government will look into changing the percentage.