Written by James Peak on Feb 26, 2010. Posted in Incentive News

Will 2010 see the Czechs return to centre stage?

Central Europe has long been recognised as a quality filming destination. Germany has had incredible success with its annual handout of EUR60 million through the German Federal Film Fund, grabbing big productions like Tarantino’s Inglourious Basterds, Valkyrie, and The Reader since inception. And in 2008, Hungary pimped their own incentives with some clever EU territorialisation rule-wise changes affording up to 25% of spend back in real terms, snaffling the BBC’s The Boy In The Striped Pyjamas, Miromar’s Good and Universal’s Hellboy 2.

But it has been a cold climate for the Czech Republic over the last five years, as the famously experienced and high-quality film infrastructure has been frozen out by its neighbours' generous incentives. Now, after years of neglect, they are on the verge of being back in the game with a finalised incentive package waiting EU sign-off, the generosity of which is turning heads everywhere.

Ludmila Claussova, Head of the Czech Film Commission in Prague, explains how the proposed incentives are looking right now.

“Where we are now is a 20% production rebate, not a tax credit. You don’t have to deduct money from the taxes you are paying on productions… it’s a straight refund! Direct money, after shooting has concluded, straight back to the producers.”

And have there been any early markers to show how much this will ramp up production?

“I am seeing many more requests for information, more requests for recces and fact-finding trips from US, French, British, German, Indian and Canadian producers in particular. All kinds of productions, domestic film, international features and documentaries are knocking on the door. We are very busy here right now!”

Jan Macola, from the well-placed Barrandov Studios in the centre of Prague, confirms this:

“There are two big international projects ready to start to shoot here in less than two months on the proviso that it can use the new incentive.”

Jan welcomes the incentives in particular as he thinks it will bring home some of the world-class Czech film professionals who have sought work overseas. He is also buoyant that the incentives are going to help them mirror the successes of the mighty Babelsburg Studios in Germany, and says:

“International filmmakers have been attracted here by the unique locations, highly trained film crews and professional film studios with a cheap set construction close to the city centre. Altogether with the rebate, we believe we will become an important player in the international film industry again."

Petr Keller, Managing Director of Starlite Productions, makes the point that the whole industry dropped by 86% as the Czech Republic lost ground to Germany and latterly Hungary. He says even though commercials are not covered by the incentives, there will still be benefits:

“These incentives will bring investments into the whole industry infrastructure, so the benefit from this will be felt by commercial producers as well as the feature film guys.”

Ivana Bohuslavova, an Executive Producer at commercials producer Vital Prague, who have clients including Nivea in Germany and KIA Motors, has also noticed that the incentives are having a profound effect, even before they are finalised.

“Phones are ringing off the hook! Without incentives in recent years, coupled with some poor exchange rates, it has been frustrating, yes. But we will always thrive through the sheer quality of Prague as a filming destination. Don’t forget, we can do snowy mountains, medieval castles and pass for pretty much any European city (well, the ones that aren’t by the sea!) But with the incentives we are a hot proposition internationally and so we are gearing up for more projects.”

The final terms for the new incentives will be rubber-stamped by the Czech government within weeks. Ludmila cannot wait for the go-ahead:

“We have one of the best film infrastructures in Europe. We have professional people and amazing locations. But we were not competitive! I think there is no need to explain the quality of locations and studios and crews; this has been proved over 20 years. Incentive-wise, we fell behind and now we are going to catch up again. It’s a great time for Prague and it’s a great time for the Czech Republic!”

The Czech Film Commission will be at the Location Trade Show in Santa Monica from the 15th to the 17th April.