France, which rivals London, Prague and Budapest in terms of attracting Hollywood productions, is preparing to become more competitive with innovative reforms to its tax incentives for international productions (TRIP).
Following intensive lobbying by French and US officials, including Netflix co-CEO Ted Sarandos and Paramount Skydance CEO and chairman David Ellison, the government and parliament have approved the inclusion of below-the-line costs in tax refunds for international films and TV series. Under the reform, expenses such as salaries and hotel accommodations for non-European actors will be eligible for a 30% rebate (up to 40% for films that spend more than 2 million euros ($2.3 million) on French VFX work). The tax credit is capped at €30 million ($35 million) per project.
The measures are expected to come into force within the next few weeks, pending final approval from the European Commission.
“White Lotus” Season 4, which will soon begin filming at St. Tropez’s luxurious La Mésardière chateau, may be just one step away from enhanced incentives. Still, this hit show is a rare example of a production choosing France solely for creative reasons, regardless of financial considerations.
Speaking at the Paris Images showcase this week, Gaetan Bruel, president of the National Film Commission (CNC), said the changes were “essential” if France was to compete for big-budget shoots at a vulnerable time for Hollywood, as a “weakening of the industry” was causing a decline in “global production”.
Mr. Bruel, who spent a week in Los Angeles last fall during the American-French Film Festival and met with studio executives and producers, later informed the Treasury Department that the country’s attractiveness as a filming location had waned and was no longer factored into decisions for most major international projects. In fact, the number of TRIP-approved works decreased to 55 works in 2024 compared to 100 works in 2022.
“This reinforcement will therefore correct the loss of competitiveness with our neighbors and put us back in the game,” Bruel said. “Soon, we will be able to regain our place among the champions of hosting ambitious shoots and large-scale projects, generating significant economic benefits, from hotel stays to income and, of course, employment for artisans and tradespeople.”
Beyond pressure from domestic industry players, Sarandos and Ellison each also played a crucial role in convincing French President Emmanuel Macron of the need to expand rebates to cover actors’ salaries. Mr. Ellison raised the issue last month while in Paris to rally support for a hostile takeover of Warner Bros. Discovery. Mr. Sarandos discussed this issue with Mr. Macron at the 8th Choose France summit focused on investments held in May 2024.
Mr Macron, who has overseen spending hundreds of millions of euros on infrastructure upgrades, studio expansions and training programs for national and international productions as part of his France 2030 plan, “realized that these efforts would be wasted if the incentives themselves were not modernized,” an industry source said. “No other country has doubled its production capacity in five years. Still, without the improved rebates, it seemed like France 2030 would have been a waste.”
Over the past decade, the arrival of Netflix and other streamers has reshaped the French film and television landscape, sparking a surge in large-scale productions financed by mandatory local content investment obligations, with annual production costs doubling from €1.5 billion to €3 billion. “The collaboration has paid off,” Bruel said, noting that high-profile series such as “Emily in Paris,” “Franklin” and “New Look” “acted as a calling card for the French staff” by combining “American expectations for production value with the technical excellence, versatility and collective intelligence of the local team.”
However, Brüel added that the sector is currently facing “turbulent times” due to “shrinking global markets and increasing international competition.” Against this backdrop, he argued that expanding actor pay is important not only to attract overseas filming, but also to support the broader ecosystem and economy.
