The Czech Republic has officially increased its film production incentives from 20% to 25% as part of a major reform under the new Audiovisual Act, which came into effect on Jan. 1, 2025. The legislation, aimed at enhancing the country’s competitiveness in the global film industry, also raises the incentive cap per project and introduces new benefits for animation and digitally produced content.
Under the revised incentive program, the maximum rebate a project can receive has been tripled from CZK 150 million ($6.25 million) to CZK 450 million ($18.75 million). While the controversial per-project cap was not entirely eliminated, it has been raised to an amount high enough to quell most concerns about turning major Hollywood projects away from the country.
Additionally, animated and digitally produced projects without live-action elements will now qualify for a 35% rebate. These changes position the Czech Republic as a more attractive destination for both local and international productions, and a wider range of audiovisual works.
The updated Audiovisual Act represents the most dramatic change in Czechia’s production incentives program since it was first introduced, and should ensure a healthy flow of film, TV, and video game projects into the country. The move places the Czech Republic back in competition with surrounding countries in the region such as Germany, Slovakia, Poland, and Hungary, many of which offer incentives in the range of 25-30%.
A new framework for supporting film, TV, and more
The increase in production incentives is part of a broader restructuring of the Czech Republic’s audiovisual funding system. The former Czech Film Fund (Státní fond kinematografie) has been rebranded as the Czech Audiovisual Fund (CAF), reflecting an expanded mandate that now includes funding for television series, animation, and video games in addition to feature films.
According to conservative estimates, the CAF’s budget is projected to reach over CZK 2 billion ($80 million) annually, with CZK 1.6 billion ($65 million) allocated for production incentives. The projected budget represents a 35% increase over 2024.
The fund will be primarily financed through a combination of levies on cinema admissions, TV broadcasters, and streaming platforms, which have also been increased as of this year, as well as direct government contributions. New this year, major international streaming platforms such as Netflix, Disney+, and Amazon Prime will be required to contribute a portion of their local revenue to help fund the CAF.
“The amendment to the Audiovisual Act is one of our key legislative proposals,” Martin Baxa, the Czech Republic’s Minister of Culture, explains through a press release.
“After a year and a half of hard work and in-depth discussions with key players in the audiovisual sector, we have achieved a wonderful thing which will bring fundamental change and significantly alter the current reality of the audiovisual industry, ensuring financial resources to secure its future. Our goal is clear: to support high-quality Czech audiovisual content and Czech filmmakers, and to help our industry make itself noticed abroad.”
Long-term impact on the Czech film industry
The Czech Republic has been offering film incentives since 2010, attracting numerous high-profile international productions over the years. The latest enhancements aim to further solidify the country’s reputation as a premier filming destination by making it more competitive with neighboring countries such as Hungary and Poland, which have also ramped up their incentive programs.
In addition to the immediate changes, a second phase of reforms is set to take effect on Jan. 1, 2026. This phase will include streamlining the project registration process, adjusting minimum spending requirements, and introducing new incentives for documentary series.
CAF CEO Helena Bezděk Fraňková emphasized that the new funding model is designed to reflect the evolving landscape of the global audiovisual industry.
“A new framework based on four categories designed to reflect the growing convergence of media sectors and the growing importance of audiovisual storytelling beyond cinema,” she says. “The change also responds to the evolving needs of the global audiovisual industry. At the same time, the increased maximum percentage for production incentives will allow the Czech audiovisual sector to grow positively.”
The newly restructured fund will be formally introduced to the international industry at this year’s Berlin International Film Festival (running from Feb.13-25), where Czech officials aim to showcase the benefits of filming in the country. With these significant policy changes, the Czech Republic hopes to attract a wider range of productions while fostering the growth of its domestic audiovisual sector.
International film and TV productions have made extensive use of Czech locations and local industry talent in recent years. Prague-based filmmakers who worked on locally-shot films such as All Quiet on the Western Front and Nosferatu have been rewarded with Academy Award nominations for their work.
Other high-profile projects that have shot in the Czech Republic in recent years include TV series such as Blade Runner 2099, Interview with the Vampire, Foundation, and The Wheel of Time. Currently, an untitled spy series starring Octavia Spencer and Hannah Waddingham is shooting on the streets of the Czech capital.
Big-budget Hollywood films such as The Gray Man and Extraction II were also filmed in the Czech Republic, but these types of projects were threatened following the introduction of a per-project incentives cap of CZK 150 million ($6.25 million) in 2022. Raising the cap to CZK 450 million (Extraction II was ultimately granted CZK 428 million in incentives) should ensure these kinds of blockbuster projects are able to return to the country in the future.
Full details about the Czech Republic’s film incentives program, and information about how to apply, can be found on the website of the Czech Film Commission.
Lead photo: Director Robert Eggers, actors Lily-Rose Depp and Aaron Taylor-Johnson, and others on the set of Nosferatu (2024) in Southern Bohemia courtesy Focus Features / Aidan Monaghan
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too little too late