Romania has become one of Europe’s most competitive destinations for film production, thanks to one of the most generous tax incentive systems on the continent. For international producers seeking cost-effective alternatives without compromising quality, Romania offers concrete opportunities that deserve attention.
The Romanian Incentive: 45% Effective Refund
The Romanian Film Cash Rebate, managed by the Romanian Film Centre (CNC), offers a refund of up to 45% on qualified expenses incurred in Romania. This is not a theoretical tax credit, but an actual cash rebate paid out typically within 60 days after the production audit is closed.
Fundamental Requirements
To access the incentive, productions must meet specific criteria:
- Minimum Spend: €100,000 in Romania (attainable even for documentaries and indie films).
- Cultural Test: At least 16 points out of 31 in the cultural evaluation system (easily achieved through Italy-Romania co-productions).
- Local Contracts: At least 25% of the budget must involve Romanian professionals, services, or facilities.
The good news? Unlike other countries, Romania does not require you to open a local company; a partnership with an authorized Romanian service provider is sufficient.
Why Romania Works for International Productions
- Production Costs: The average cost of a shooting day in Romania is 50-60% lower than in Western Europe, while maintaining high technical standards. Facilities like Buftea Studios and MediaPro Studios offer infrastructure comparable to Cinecittà.
- Qualified Crew: Over the last 15 years, Romania has trained hundreds of professionals through major international productions. Romanian DOPs, production designers, and VFX artists regularly work on Hollywood blockbusters.
- Versatile Locations: From the Carpathian Mountains to the medieval cities of Transylvania, and from the Black Sea coast to rural landscapes, Romania offers exceptional scenic variety.
The Ideal Structure: Italy-Romania Co-production
The most efficient formula is an official co-production under the Bilateral Treaty between Italy and Romania and the European Convention on Cinematographic Co-production. This allows for dual tax benefits:
- Romanian Cash Rebate (up to 45%)
- Italian Tax Credit (40% for qualified productions)
- Access to Eurimages funds (up to €500,000 for fiction)
Recommended Split: A 60% Italy / 40% Romania split usually ensures the majority status required for domestic fiscal benefits while maximizing the local rebate.
Qualified Expenses: What Counts
The rebate applies to:
- Fees for Romanian cast and crew
- Studio and equipment rentals
- Location fees and permits
- Post-production (VFX, color grading, sound mix)
- Travel and accommodation for the crew within Romania
Note: Expenses for script development, marketing, and fees for non-resident international stars are generally not reimbursable.
Application Procedure
- Pre-qualification: Project submission to the CNC (3-4 weeks before shooting) with script, budget, and cultural plan.
- Provisional Certification: Preliminary approval of the incentive.
- Production and Monitoring: Real-time expense tracking.
- Final Audit: Post-production accounting review.
- Payment: Rebate issuance within 60 days of audit closure.
Common Mistakes to Avoid
Contractual Non-compliance: Many producers underestimate formal Romanian requirements. Contracts with local crew must meet specific CNC standards to qualify. Also, the Cultural Test requires specific local elements or significant artistic contribution, not just a European setting.
The Role of Legal Counsel
Navigating an Italy-Romania co-production means managing two legal systems, two incentive bodies (CNC Romania + MiC Italy), bilateral treaties, and potentially Eurimages. Specialized legal advice is an investment that can safeguard hundreds of thousands of euros in optimized incentives.
DANDI.media assists producers through the entire chain: from the legal structure of the co-production to negotiations with Romanian partners and compliance verification.
Ready to take your production to Romania?
📩 Free 30-minute consultation to evaluate your project’s eligibility: info@dandi.media
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