Romania, which was forced to suspend its cash rebate program due to outstanding debt and a prolonged production drought, is finally coming out of the cold with a revamped incentive system boosting the hopes of the domestic industry heading to Transylvania International Airport. Bringing film festivals and foreign films back to the Eastern European country.
“We are in a really healthy situation,” says Valentin Sabu, manager of the Office of Film and Cultural Investment (OFIC). OFIC was created in 2024 to rebuild and restart the country’s beleaguered cash rebate program. “Right now is one of the best times to shoot in Romania.”
Sabu said that two years after the cashback scheme was officially restarted, Romania’s last outstanding debt had been repaid and the industry was back on solid footing, as a result of a concerted effort to “restructure the entire cash rebate law”. The overhauled incentive scheme has been streamlined and fully digitalized, and the three-step application process is clear and transparent, making it “one of the quickest and most reliable cash rebates in Europe,” he added.
The new incentive provides a 30% cash rebate on eligible expenses in Romania, with a cap of €10 million ($11.5 million) per project and an annual budget of €55 million ($63.4 million). Under current law, OFIC has until the end of this year to enter into loan agreements and pay redemptions through the end of 2028, but negotiations are underway to extend the program for an additional three years.
“What we have created is a win-win situation for the producers and for the Romanian government,” Sabu says. “The improved and restructured program is sustainable and is bringing growth to Romanian industry.”
Since the program restarted in July 2024, an estimated 70 film and television projects have received or are in the process of being approved for eligibility, and nine have already received full payment. Budgets for these films range from 1 million to 3 million euros ($1.2 million to 3.5 million) up to more than 20 million euros ($23 million), Sab said, and the industry is looking to offer the kind of temptation that has lured films in the past such as Netflix’s “Wednesdays” (pictured) and Sky Studios and Canal Plus’ big-budget “Django” TV series.
For local film and television professionals, the efficiency and reliability of cash rebate programs are key to determining the future direction of the industry.
“Obviously, the trust, confidence and reputation of the country and the companies have been affected to a considerable extent,” said Bogdan Monsair, head of production at Bucharest-based Castel Film Studio, which is behind Prime Video’s historical drama miniseries “The Gray House.” But with the start of cash rebates, that confidence is finally returning.
“People are interested in returning to Romania,” he says. “We have been talking about many more projects since the beginning of this year.”
Yuliana Tarnoveshki of Bucharest-based Alien Films, which has worked on high-profile international shoots such as Sony Pictures’ TV series “Alex Rider” and BBC America’s “Killing Eve,” agreed, noting that interest is growing across the industry. “We all have a lot of budgets,” she told Variety. “We all have projects scheduled for later this year.”
The timing couldn’t have been better for the Romanian industry, which is currently buzzing with the second Palme d’Or win for veteran auteur Cristian Mungiu, who won this year’s Cannes Film Festival with Fjord, starring Sebastian Stan and Renate Reinfe. It’s the latest honor for an industry that has arguably punched above its weight in the two decades since Mungiu, along with fellow filmmakers like Cristi Puiu (The Death of Mr. Lazarescu) and Corneliu Porumboiu (12:08 East Bucharest) and Golden Bear winner Radu Jude (Bad Luck Banging), ushered in Romania’s new wave. or Looney Porn”) continues that tradition.
“What is happening with Romanian cinema internationally and the historic success of Mungiu will help reinvigorate the Romanian film industry,” says Tarnovesi, who has also produced domestic titles such as Ruxandra Guisescu’s Transylvania Prize-winning Otto the Barbarian. Veteran director and producer and TIFF founder Tudor Giorgiu agreed, saying he and industry and government officials need to “build this momentum now” and increase support for local film.
“At an industry level, I think now is the perfect time for politicians to recognize that film funds need more support,” he says. “They need more funding and the Producers’ Union is strongly lobbying the Minister of Finance and the (Romanian National Film Center). I think there will be important and positive changes for filmmakers, and the cash rebate system is finally starting to work.”
Sabu said that “the entire Romanian industry is now united” and shares a “common voice” as they look to a future that becomes brighter by the day.
“It’s not just the 30% cash rebate we offer. It’s also about our staff and talent. Efficiency is also important, because production costs are much lower in Romania than in Western Europe,” says Sabu. “We have government agencies that provide a lot of support services before, during and after production. We have a world-class studio. We have countless locations. There’s a lot we can offer.
“We need to see people coming back to Romania, and that is already happening,” he continues. “We’re here. We’re ready. The show is live. The infrastructure is there. The talent is proven. The cash rebate is funded. There’s only one question: When do you want to start filming?”
The Transylvania International Airport Film Festival will be held from June 12th to 21st.
