Greece enters the entertainment industry dynamically: The actions of the government

In recent years, with coordinated moves and a plan, Greece has managed to enter dynamically into the huge entertainment industry. From 2019 and then, our country has developed actions that yielded significant fruits, especially in the field of cinema, offering benefits on two levels: 1) In promoting the country worldwide and 2) In strengthening the economy.

The Ministry of Digital Governance presented the actions of the government and the benefits that Greece obtained from the plan drawn up in 2019.

More detailed information from the ministry:

The audiovisual production space is the largest entertainment industry in the world and one of the most dynamic sectors of economic growth.

For example:
• in the movie market sector, revenues for 2019 exceeded $100 billion, while the home cinema market alone exceeded $55 billion. (For 2020 and 2021 there are no figures due to the covid-19 conditions).

• The same landscape exists in the video games market, whose value is expected to reach $200 billion in 2023 (in 2020 it reached $180 billion), according to a related report by Juniper Research.
Greece can become part of this dynamic global industry but also use it for reasons of cultural diplomacy and extroversion. Relevant research on the importance of the industry in question has been done by IOBE in 2014 and DIANEOSIS more recently.

For example, IOBE reports that for every million spent on filming in Greece, the domestic added value is enhanced by an average of €1.4 million. In terms of GDP, …, €1 million spent on film production translates into approx. €1.6 million total impact. On the employment side,…in total, around 30 jobs are created in the economy for every €1 million spent on motion picture production. Nevertheless, the full utilization of the potential inherent in such a global market can be achieved more effectively if our country establishes a coherent and unified public policy for the audio-visual industry and creates the conditions for its unified and multi-level exercise.

To support the sector, the cash rebate tool was created in 2017 with Law 4487, which aimed to attract foreign investments in the field to Greece but also to support domestic audiovisual production through the return of 35% of the eligible costs of each investment to investors (production companies).

The cash rebate, as a financial tool, is handled by the National Center for Audiovisual Media and Communication (EKOME), a supervised body of the Ministry of Digital Governance. Its resources were initially 75 million euros from the National PDE. From 2017 to 2019, the use of the tool was limited.

II. GOVERNMENT ACTIONS FROM JULY 2019

The Government and the Ministry of Digital Governance have taken important actions (a) both to improve the cash rebate and (b) to create new financial tools to support businesses in the audiovisual sector.

More specifically:
(a) The improvement of the cash rebate was made with continuous legislative and regulatory interventions and with constant consultation with professionals in the field (e.g. Association of Independent Producers of Audiovisual Works – SAPOE, Union of Technicians of the Greek Cinema & Television Audiovisual Sector – ETEKT, Union of Producers Communication Projects – PACT, Hellenic Film Center – EKK). The improvements were as follows:

• The percentage of the cash rebate was increased from 35% to 40% and short films, which are the innovative element of audiovisual production, were included in the program

• simplified the way of applying to the regime and certifying the completion of an investment project with the use of certified chartered accountants and the ex-post sample control by EKOME

• invoices of foreign actors (artists and crew) were included in the eligible costs, thus giving the possibility in a very short time (Summer 2021) to have productions of major studios such as Disney, Paramount, Netflix, etc.

Furthermore, significant resources were added to the initial amount of €75 million, amounting to €200 million for the cash rebate from the new NSRF 2021-2027.

(b) The new Audiovisual Business Investment Loan Guarantee program was implemented – in collaboration with the Development Bank, in the amount of 25 million, which through leverage reaches 62.5 million. The Fund’s main objective is to guarantee loans business development, working capital and investment loans, at a rate of 80% of the amount of the loan, with a maximum coverage rate of 50% of the portfolio value. Through the program, on the one hand, the Fund covers liquidity needs, by providing guarantees to cooperating banks, and on the other hand, the beneficiary company achieves either a lower interest rate on the loan, or smaller or no collateral.

During the first months of the Fund’s operation, the figures are encouraging, as so far approximately 20 companies from the audiovisual sector have utilized the Fund with the total investment reaching approximately 3 million euros.

(c) Improved the application of the 30% tax relief, which is a tax relief incentive, to investors and producers for the production of audiovisual works. Tax Relief is addressed to either legal entities or natural persons who are taxed in Greece and wish to invest in the production of audiovisual works. It concerns the deduction from the investor’s taxable income of up to thirty percent (30%) of the realized eligible costs of each audiovisual project, as long as these are carried out in Greece.

III. CASH REBATE RESULTS

The application of the new cash rebate, from 2020, has resulted in more than 200 investment project acquisitions (foreign productions of major studios such as Disney, Paramount but also important domestic productions), with an estimated public expenditure of approximately 160 million euros and that Greece has become a pole of attraction for large producers and investment schemes in the area. The majority of financing, especially in terms of attracting foreign investment, took place from 2020 onwards, due to the specific actions implemented. More specifically:

 Submissions: 216 investment film and television projects, Greek and international productions have been submitted with an estimated public expenditure of 146 million.

 Completion: 123 investment film and television projects, Greek and international production

 Pending affiliation requests: 92 investment film and television projects, Greek and international productions, have applied for affiliation with an estimated public expenditure of 71 million.

International productions that were shot in Greece and were successful abroad:

• Glass Onion: A Knives Out Mystery. With Daniel Craig, Edward Norton, Kate Hudson. The film will be shown in December on Netflix and in a limited number of cinemas in America. It was filmed in the summer of ’21 in Porto Heli.

• Rise The Disney film about the life of Giannis Antetokounmpo, which was shot in the Spring of ’21 in Athens

• The Triangle of Sorrow / Cannes Film Festival Palme d’Or. Directed by Ruben Estlund

• Tehran Israeli series co-produced by Cosmote bought by Apple

• Jack Rayan Spy series by Apple, the third cycle of which was filmed in Greece

• Crimes of the future Directed by David Cronenberg – Participation in Cannes

• Greek Wedding No. 3 Filmed in the summer of ’22 in Athens and Corfu.

Greek productions that were successful abroad:

• Maestro of Christoforos Papakaliatis. Airing on Mega. The 1st Greek series bought by Netflix and will be shown on the platform on December 19

• Silent Road – 2021 TV series, Mega production which has been sold in European countries

• Monday – 2021 motion picture purchased by Netflix to be shown in America

• The Apples – 1920s film purchased by Netflix to be shown in America and European countries

• Izmir Beloved – motion picture shown in America and other European countries.

• Happiness – motion picture shown in Europe.

• Dodo – film with participation in the Cannes festival and will be shown in European countries.

IV. PRIORITIES OF THE MINISTRY OF DIGITAL GOVERNANCE

The success of the cash rebate and other financial support tools in the field of audiovisual production have caused a rapid growth of domestic production, the return of Greek fiction to television and have put Greece on the map of international audiovisual production by attracting significant investments in the field. In addition, it has caused an increase in the employment rate of workers in the audio-visual industry and the creation of new jobs.

The Ministry’s priorities for this sector in the coming years are as follows:

• Ensuring further financial support with the inclusion of EKOME in EPANEK and its financing with 200 million.

• Developing the ecosystem by exploiting new technologies, upgrading and modernizing existing infrastructure & creating modern facilities and laboratories

• Creation of training programs to strengthen and upgrade the skills of professionals in the field so that audiovisual production can develop in a new international competitive environment, and our country can take advantage of the benefits at a social and economic level.

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