France strengthens its tax credit to attract American productions

Faced with a decline in international filming and increasingly fierce European competition, France is reforming its tax credit for international productions, particularly Hollywood productions. Objective: to once again become a credible choice for big-budget films and series.

France has just thoroughly revised its tax credit for international productions (TRIP) in a clear move: to get back into the race against its European neighbors and attract major Hollywood productions. For years, Paris, Marseille and Lyon have attracted teams for their settings and technical know-how, but on the fiscal side, the country was starting to lose points against Ireland, Belgium or even certain Eastern European countries like Hungary, which already count the salaries of American stars in eligible expenses.

Until now, the TRIP – reimbursement of 30% of expenses incurred in France (up to 40% if the VFX are done locally) – did not include the salaries of non-European actors in the base of eligible expenses. A brake for the local industry, because these fees often represent a large part of the budget of an American film or series. With this reform, the salaries of non-European actors become eligible. In other words: if a blockbuster decides to shoot scenes in France with Dwayne Johnson, Angelina Jolie or Timothée Chalamet, these salaries can now count towards obtaining the tax credit.

At the Paris Images showcase, Gaëtan Bruel, president of the CNC, did not hide the urgency of this reform (via Variety): for him, these changes are “indispensable” if France really wants to attract big-budget productions. And this in a context where a “weakened industry” in Hollywood has reduced global production volumes. Gaëtan Bruel said he spent a week in Los Angeles last fall, meeting studio executives and producers, before reporting to the Ministry of Finance that France’s attractiveness as a filming destination had fallen to a very low level, to the point of no longer being a factor in decisions on major international projects.

The statistics speak for themselves: the number of TRIP approved productions fell to 55 in 2024, compared to 100 in 2022, showing a real erosion of competitiveness.

“This improvement therefore corrects a loss of competitiveness with our neighbors and puts us back in the race. Soon, we will be able to regain our place among the champions of hosting ambitious filming and large-scale projects, generating significant economic benefits: from hotel nights to income for artisans and traders, and, of course, jobs.”

These comments highlight a dual challenge: attracting more international productions thanks to modernized tax incentives (now including star salaries and living expenses) and reaffirming France as a major hub in the global film and series industry, at a time when every point of tax competitiveness counts.

The measure must still be validated by the European Commission, but several observers believe that it could apply from 2026. By broadening the TRIP base, France is directly responding to this competition and sending a strong signal: Paris wants to be, fiscally also, a leading destination for international blockbusters.