Music, Filming
and Design in Iceland
Design reflects
and identifies who we are, the country we live in, and our
culture and lifestyle.
The fascinating beauty of the natural world in Iceland is
a primary source of inspiration for creative people in this
country: film-makers, composers, and designers.
Current trends in Icelandic architecture, interior design,
music and fashion reflect the dynamic forces that have shaped
culture and industry in this country. The finished products
also testify to designers' close connections with the international
environment.
In recent years,
Iceland has gained a higher profile in the international
film industry. Over the last decade, Icelandic production
companies have produced five or six motion pictures a year
that meet the highest technical standards. Iceland has also
been the site of international productions carried out in
co-operation with local companies. Innovative agencies have
shot a number of internationally acclaimed commercials in
eye-catching Icelandic surroundings, and the same trend
can be seen in music videos. Special incentives are granted
for film and television production in Iceland, if certain
requirements are met. The production must be incorporated
in this country. For this purpose, an Icelandic subsidiary
or representative of a corporation registered in one of
the EEA countries is considered incorporated. No requirements
are made concerning the production budget. The film and
television production cost rebate rate amounts to 12% and
will be available until the end of 2006.
New legislation
allows companies in certain sectors to set up International
Trading Companies (ITCs) in Iceland, which pay only 5% corporate
income tax and no net-worth tax or stamp duty on documents
related to their general business activities. As exporters,
companies of this type also qualify for a refund of all
VAT paid in Iceland. Film producers can benefit by having
an ITC acquire their distribution rights and/or copyrights.
Since Iceland is a member of the European Economic Area
(EEA), films and television programs made in Iceland receive
European content status. What is more, through Iceland's
membership of the EEA, films and television programs made
in Iceland are eligible for production grants from the EU
and its member states.
These industries
are valuable resources that reflect Icelandic culture. The
authorities take a very positive view of the growth and
productivity that they have demonstrated in recent years
and intend to continue making their contribution to supporting
this creative sector.
(Source: Invest
in Iceland Agency)
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