30%–40% Transferable Tax Credit
Italy offers one of the most competitive tax incentives in Europe, covering both production and post-production costs; including VFX, color grading, compositing, animation and finishing performed in Italy.

The credit can be transferred to banks (for immediate cash benefit) or used to offset Italian taxes by the local production company.

Foreign producers can access the full 40% rebate on 100% of their VFX and Post budget when those services are included in an Italian Executive Producer’s contract (EP Model), or up to 40% on eligible technical costs when working directly with an Italian post house (PP Model).

→ EP Model = 40% applied to the entire Italian budget. PP Model = 40% on all eligible costs incurred in Italy.

All production and post-production work carried out in Italy qualifies for the incentive when taxes are withheld locally.
This includes VFX artists, supervisors, editors, colorists and animation teams.

Crew eligibility:
– Resident and EU crew (ATL & BTL): 40%
– Non-EU creative roles (ATL): 30%
– Non-EU technical roles (BTL, taxed in Italy): 40%

💡 All VFX and Post teams working through an Italian company are fully eligible for the 40% rebate.

40% on costs spent in Italy

All production and post-production costs invoiced by an Italian Executive Producer or Post company are considered eligible, including VFX, color, compositing, animation, editing and finishing.

Financial, insurance and guarantee costs may be included up to 7.5% of the total budget.
Producer fees and overheads are not eligible when invoiced directly.

How it works for VFX and Post:
> EP Model: If a foreign producer shoots at least one day in Italy through an Italian Executive Producer, the entire VFX and Post quote (including margin and producer fees) is eligible for the 40% Tax Credit. Minimum spend: €250,000 (combined production + post).
> PP Model: If no shooting occurs in Italy and the foreign producer works directly with an Italian VFX/Post company, only technical cost items qualify for the credit. Minimum spend: €250,000 (post/VFX only).

Minimum Spend: €250,000
Project Cap: No limit per project
Annual Cap: €20 million per Italian company (no limit per project if multiple EPs are involved)

Applications may be filed by the Italian Executive Producer or Post company from 90 days before shooting to 180 days after completion in Italy.
Approval typically occurs within 10 working days after the cultural test and expense verification.

Application fees: €5,000 (for budgets up to €3.5 M) / €10,000 (above €3.5 M).
Provisional applications can secure up to 70% of the credit in advance; the balance is released after final DGCA approval.

💡 Proxima Milano and its partner network assist foreign producers through the entire process, from cultural test to monetization.

Projects must score at least 50/100 on the Italian Cultural Test *
Foreign producers must partner with a qualified Italian Executive Producer or Post company registered with the DGCA. By law, this Italian entity does not hold rights to the work unless authorized.

Eligible costs cannot exceed 75% of the total production budget; EU expenses may count as Italian spend up to 1/6 of that amount.

AI Compliance (since 2025):
> ATL AI costs are not eligible (except limited SFX use).
> BTL AI-related VFX and post costs are eligible.
> Producers must disclose AI use and include performer consent clauses regarding AI training or likeness use.

💡 Proxima Milano ensures full DGCA and AI compliance, making Italy one of the most transparent and advantageous territories for VFX and Post.

* See all requirements and points