€143 Million Of Malta’s Taxpayer Money Went To Film Cash Rebates In Last Five Years
Malta has allocated around €143 million in public funds went to film production companies, it has just been revealed.
The cash was used to fund around 54 movies and television series according to the Times of Malta.
The Malta Film Commission committed a staggering €142.7 million to various production businesses between 2019 and August 2023, according to the State aid website of the European Commission.
By the end of the year, this amount is anticipated to surpass €150 million. The investments are a part of Malta’s cash rebate program created to lure production companies to shoot movies there. The program gives participants up to 40% cash back on almost all of their in-country purchases.
There’s a twist, though. The real expenditure can be higher than the listed amounts because funds under €500,000 aren’t listed on the EU State Aid website.
Some notable beneficiaries of the cash rebate scheme since 2019, each of which acquired an average of €2.6 million, include:
– Gladiator 2 (2023) with a significant rebate of €46.65 million
– Napoleon (2022) awarded €12.79 million
– The Last Voyage of the Demeter (2021) with €8.17 million.
Not just blockbusters profit from this. Aside from Love Island, reality TV programs like Are You The One,True Love or True Lies, and Below Deck Mediterranean also received large grants.
Numerous locally produced or jointly foreign-Maltese productions have received backing. Additionally, productions for specialized audiences or in Maltese are given an additional 10% discount.
It is important to note that, international companies frequently spend around half of their budgets outside of Malta, while Maltese producers generally reinvest their budgets domestically. This raises concerns about the real benefits Malta derives from such significant refunds.
Malta’s strategy is argued to be unsustainable given that other countries like Italy, Spain, France, and Greece have capped their film rebates.
The source of these funds and their allocation remains a grey area. Despite Finance Minister Clyde Caruana indicating a €11 million budget for film incentives this year, with the EU Commission allowing a limit of €50 million, Malta’s spending already overshadows this by €19 million, and it’s anticipated to increase.
Do you think this will have a positive return on the Maltese economy in the future?