Tax breaks and thermal spas make the film industry love Hungary

During a panel discussion at the Cannes Film Festival, several film professionals gave their thoughts on the Hungarian film industry. In addition to the tax incentives, they highlighted the professionalism and the cultural attractions of Hungary as attractive factors to consider when looking for a place to shoot.

The Hollywood Reporter published an article detailing a recent panel discussion during the Cannes Film Festival, where film commissionaire Csaba Káel, and producers Ildikó Kemény, Robert Lantos, and Mike Goodridge discussed the reasons filmmakers bring their productions to Hungary, and their experiences filming in the country.

“Whenever I have a project that needs a European-looking city, my direct path is to Budapest,”

producer Robert Lantos said.

Indeed, several large productions have been filmed in the country in recent years, from the sci-fi epic Dune to Yorgos Lanthimos’ latest, Poor Things. Ildikó Kemény, who was a producer of Poor Things, said

“We had hundreds of Hungarians working on that film. There was a big competition amongst many countries of where they would be filming [Poor Things] and we won out because of the economics. […] Now, we are up to four or five productions this year, just our company.”

On the set of Poor Things at the Origo Studios. Photo: Origo Studios Budapest / Facebook

The Hungarian film industry soars – with talent to back it up

Csaba Káel highlighted how commercial film production in Hungary dates back to the early 1900s and has since soared to unseen heights. Only the United Kingdom has more film production than Hungary. According to the Hungarian National Film Institute, the total spending on production in 2023 in the country reached USD 910 million, a record high, and nearly four times the amount spent in 2018.

To facilitate even more creative collaborations, the National Film Institute is expanding its studio complex with four new soundstages, increasing its total area to over 12 thousand square meters.

Moreover, while previously, international productions would often bring their own crews to the country, the National Film Institute has now set out to train local talent to enter the film industry. A new training program has been set up for professionals, where they can participate in workshops and lectures, and undertake internships.

Their efforts have been successful, so much so that in recent years, over 80 percent of the crew working on these big-budget movies have been Hungarians. One such example that The Hollywood Reporter highlights is Zsuzsa Mihalek, who received this year’s Academy Award for the production design of Poor Things.

Robert Lantos, who produced Rise of the Raven in the country, said that the professionals of the Hungarian film industry created a perfect set for the series, which had a sprawling story encompassing Middle Age Europe under the rule of the Ottoman Empire. “The construction and carpentry in Hungary is unlike any place I’ve ever work [sic]. So, we made the decision to build and, boy, did we build,” Lantos said.

Káel added that the larger country-wide initiative to restore and preserve old castles in the region is particularly favourable for filmmakers looking to set their movies in old-timey castles.

Stages of the Origo Studios Budapest. Photo: Origo Studios / Facebook

Hungary offers a robust tax rebate program and local attractions

Perhaps most importantly, since 2004, Hungary has implemented a tax refund program that offers every movie produced in the country a 30 percent rebate based on its expenditure.

Robert Lantos emphasised how important this tax legislation is for the vitality of the Hungarian film industry, saying “I can say that of all the places in the world where I have made films where the rebate is most guaranteed to function smoothly is in Hungary.”

“Filming in Hungary offers everything from a massive amount of production space and a 20-year strong tax rebate to eight symphony orchestras and thermal baths,”

The Hollywood Reporter wrote. Besides tax cuts and attractions, easy access to the rest of Europe, a large hospitality industry, and good food all attract filmmakers to the country, the panelists agreed.

Mike Goodridge said about the film industry in Hungary:

“Look at the big stars and talent that have worked in Hungary. They are comfortable there and that is an important thing. You can have all the tax incentives you like but you also have to have a base of comfort for demanding foreigners.”

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Source: The Hollywood Reporter