France

Whilst having the most tightly regulated funding system in Europe, France also boasts the most sophisticated. The government operates a mixture of state subsidies, state credit and tax shelter benefits. Although the French system is amongst the toughest for outsider investors to exploit, many of the schemes that were primarily French now apply to nationals from European member states.

Tax Breaks

Tax breaks are offered through film financing companies that operate under SOCIETES DE FINANCEMENT DU CINEMA AT DE L'AUDIOVISUEL (SOFICA). Companies investing in SOFICAs can write-off up to 50% of tax on their investment. Individuals can invest up to 25% of their income with a 100% tax write-off. Any tax relief given must be paid off by the individual or company within a maximum of five years after their acquisition.

The main SOFICA companies include media groups such as Gaumont, Caisse des Depots and Le Studio Canal Plus.

Credits and Subsidies

Centre Nationale de la Cinematographie,
Rue de Lubeck 12,
75016
Paris,
FRANCE

Tel: (33) 145 05 14 40
Fax: (33) 147 55 04 91

Contact: Patrick Ciercoles

A private company, the IFCIC, provides French state credit. The company guarantees loans provided by specialist investors and commercial banks.

France also operates an automatic subsidy on projects of over one hour's duration through the Centre Nationale de la Cinematographie (CNC). Each year, the system divides in the region of FF200 million between all eligible films over the previous year for debt repayment or investment in new projects. To be eligible the producers must meet the following criteria:

• The cast and crew must be resident in an EU state.
• The film must be filmed in France or a French territory.
• Any co-production must be part of a formal treaty.
• The film must be directed by EU nationals, or those who have lived in France for more than five years.

There is also a selective subsidy scheme - Avance Sur Recettes - that is open only to French-language films. Other, less common, incentives cover creative development, re-writing, international co-productions, music rights and short films.