Italy’s 2026 Budget Law (Law No. 199 of December 30, 2025) introduced several amendments to the Italian Cinema & Audiovisual Law (Law No.220/2016).
Italy Strengthens Foreign Production Incentives with €100 Million Allocation
THE CINEMA & AUDIOVISUAL FUND
The Cinema & Audiovisual Fund (established by the Italian Ministry of Culture pursuant to Law No. 220/2016, Article 13), changes from €700 million in 2025 to €610 million in 2026 and is expected to stabilize at €500 million in 2027 (Article 1, paragraph 554 of the 2026 Budget Law). The final allocation for 2026 amounts to slightly over €606 million, taking into account the reduction provided for under Article 1, paragraph 805 of Law No. 145 of December 30, 2018 (2019 Budget Law and multi-year budget for the 2019–2021 period).
Foreign companies bringing film or audiovisual production activities partially or entirely in Italy may access a total allocation of €100 million.
TAX CREDIT
The Law introduces spending caps on production tax credits, aligning this segment with the framework already applicable to distribution, technical industries, and exhibition. The introduction of such caps effectively eliminates the possibility of granting tax credits beyond the allocated budget. In addition, oversight is enhanced through the introduction of a quarterly monitoring system across all funding lines.
Pending the issuance of the new Ministerial Decree setting out the applicable limits and eligibility conditions, tax credits continue to account for the largest share of the Fund, increasing from just over €412 million in 2025 to €441 million in 2026. Approximately half of this allocation is attributable to production tax credits, which rise from €188 million to €220 million in 2026. Allocations for production increase to €80 million for cinematographic works (+€14 million compared to 2025) and €130 million for audiovisual and web works (+€20 million compared to 2025), while €10 million is allocated to video game production. Across the remaining segments of the value chain, €30 million is allocated to distribution, €5 million to exhibition, and €1 million to technical industries and post-production. Nearly one quarter of the total allocation—more than double the 2025 level—is dedicated to the attraction of foreign film and audiovisual investment into Italy.
SELECTIVE GRANTS
The Italian incentive system provides additional selective grants for international co-productions. The 2026 allocation decree
earmarks €41.7 million for this funding line (just over half the 2025 level), aimed at supporting—subject to evaluation by a dedicated commission—various stages of the value chain and the production of works across all genres. Specific funding lines are dedicated to projects by emerging talent, first and second feature films, works of particular artistic quality, and projects focusing on Italian cultural heritage, including historical figures and events.
The decree allocates 90% of selective grants to production across all types of works, maintaining this share broadly in line with 2025 (when production accounted for 92% of the total allocation under this form of incentive).
Minority Coproductions
The call for minority co-productions will receive an allocation of €5 million in 2026, in line with the funding level at the program’s launch in 2019. In recent years, this funding line has enabled Italian production companies to participate in leading international co-productions, many of which have been selected and awarded at major festivals. Berlinale’s Silver Bear for Best Screenplay, Nina Roza, written and directed by Geneviève Dulude-De Celles, was among the minority co-productions funded by the Italian Ministry of Culture. The film received €170,000 through the 2024 call.
PROMOTION AND EDUCATION
The decree allocates just over €103 million to promotional activities, along with an additional €20 million for the Cinema for Schools Program, which supports film education initiatives in collaboration with the Italian Ministry of Education. Overall, the 2026 allocation remains broadly in line with the 2025 funding.
The Fund’s allocation could increase thanks to additional resources. Recently, the Italian Minister of Culture, Alessandro Giuli, announced an additional €20 million contribution toward the Cinema Fund in order to strengthen the film sector.
Shot in Italy
The International Tax Credit has attracted major productions to Italy in recent years. The Resurrection of the Christ, directed by Mel Gibson—a two-part sequel to The Passion of the Christ—has recently completed filming in Italy with a crew of approximately 500 people. The production was shot between Cinecittà Studios and locations in Southern Italy, including Basilicata (Pisticci, Craco, and the Murgia of Matera) and Puglia (Gravina and the northern Salento coast of the Torre Guaceto). Oliver Stone shot in Rome his latest film White Lies, starring Josh Hartnett as a man marked by divorce. Filming took place during six weeks between April and May, employing a crew of over 120 people, and involved additional weeks of shooting in Thailand and Bulgaria. On the series front, filming is underway in Rome for the Netflix production Assassin’s Creed, set in Rome in 64 AD, with a base at Cinecittà Studios, where the existing Ancient Rome set will be expanded. The six episodes series will involve a crew of around 400 people, including 360 Italians, who will be working between Rome, Viterbo, and Arezzo until next October.
This article was created in collaboration with Italy For Movies. All information regarding the shooting mentioned above and guidelines of Italian grants and tax credits are available on the Italy for Movies portal www.italyformovies.com
