Iceland's Push for Film Production

Iceland's famous Blue Lagoon with volcano in background

 Iceland has witnessed a leap in movie production since it increased its production rebate to 35% on qualified large projects. From HBO to BBC Productions, Iceland is the new to-go production destination. With its natural beauty, highlighted by hot springs, volcanos, and pristine landscapes, Iceland offers a unique venue for outdoor film production.

The increased rebate, it was 25%, has brought in millions of production dollars which has greatly helped many local communities with an influx of new monies and knowledge gained in the latest filmmaking techniques. On the production side, for example, using Iceland's famous geothermal energy to power sets and stages offers a huge savings in costs. 

The Icelandic Film Commission has noted that although production has been great, the goal is to develop other areas of the film business, i.e. VFX to music scoring, and other postproduction activities. It is estimated that the delivers a 5-7x return on investment.

In a competitive gesture, Denmark just approved a tax incentive to lure in film production activities. The Danish incentive will launch in 2026 starting with an annual budget of $17.5 million (one of the largest in Europe) and be focused on making Denmark a hub for film production. For example, Netflix has six productions in Sweden, six in Norway, and only three in Denmark, so its 'game-on'.

By: Jim Lavorato