At the meeting of 2 May 2023, the Cabinet of Ministers conceptually supported the granting of additional state budget financing in the amount of EUR 1,994,857 to co-finance filming of foreign films in Latvia for the film projects from the third selection round organised by the Investment and Development Agency of Latvia (IDAL) in 2023. It is expected that seven joint cinema projects of producer unions of Latvia and Germany, Israel, France, Switzerland, Finland and Ireland could be implemented with the additional funding.
As a result of the implementation of the projects, funding for filming needs in the amount of EUR 9.79 million would flow into the national economy of Latvia, as well as the amount paid in taxes will amount to EUR 3.12 million.
Joint foreign film production projects help not only to strengthen the competitiveness and export capacity of Latvian film industry professionals in the international market, but also promote Latvia’s visibility in the film industry and provide revenue in other related economic sectors – logistics, accommodation, food service activities, etc. In 2022 and 2023, purposeful work has been done to attract foreign producers. During this year’s International Film Festival in Berlin, talks started with Netflix on filming opportunities in Latvia, as well as an agreement was reached that representatives of the largest film studios in the United States and Europe will arrive in the Baltic States in the autumn to position the Baltic region as an excellent location for filming, including offering state support programmes,” the Minister of Economics Ilze Indriksone emphasises.
If additional funding within the framework of the state support programme is approved for filming of foreign films in Latvia, the following projects could be implemented in 2023:
- the continuation of the series “Sisi”, which follows the life of Elisabeth, the last Empress of Austria-Hungary, by the producer union “Cinevilla Films” and German Story House Picture GmbH,
- the feature film “Haim and Greta” by the producer union Ego Media and Israeli ZOA Films,
- the joint project of the producer union “Cinevilla Films” and German Story House Picture GmbH “Terra X One day in…”,
- the joint project of the Latvian producer union “White Picture” and French SBS Productions “Two Prosecutors”,
- the joint project of the Latvian producer union TASSE FILM and Swiss Snakefilm GmbH “Glass Wall”,
- the joint project of the Latvian producer union TASSE FILM and Finnish Art Films Productions “After us the Flood”,
- the joint project of the Latvian producer union “Studija Lokomotīve” and Irish Fantastic Films Ltd “The Restoration At Grayson Manor”.
In order to encourage raising foreign investment, a variety of financial mechanisms have been established in many countries in Europe and around the world, both in the form of taxation and in the form of funds, so that foreign film producers are financially interested in filming in that country, recovering some of the funding invested. In March 2022, the Latvian government also approved a new state support programme developed by the Ministry of Economics for filming foreign films in Latvia.
The conditions for receiving support are laid down in Regulations of the Cabinet of Ministers No. 173 of 15 March 2022 “Procedure by which state budget co-financing is granted for the production of foreign films in Latvia” developed by the Ministry of Economics.
To grant state co-financing for the filming of foreign films, twice a calendar year the IDAL organises an open competition for the selection of project applications. The amount of co-financing available for one project is 20% of the total amount of eligible expenditure indicated in the co-financing agreement, while for eligible remuneration cost items the amount of co-financing is 30%. Co-financing is granted if the film referred to in the project application meets the following conditions at the same time – the film is filmed in Latvia in whole or in part; the services of such natural or legal persons, which are registered in Latvia, are used in filming the film; the total costs of the film project reach at least EUR 711,436 for films and animated films, and at least EUR 142,287 for documentaries; on the day of submission of the project application, the financing available to the foreign producer in accordance with the financing plan is at least 50% of the total costs of filming the film.
Previously, support for the production of foreign films in Latvia was administered by the Film Centre of Latvia (FCL). It can be mentioned that between 2016 and 2020, the FCL co-financed the production of 25 foreign film projects in Latvia. These filmmakers invested EUR 16,557,031 in Latvia, while the Latvian state co-financing of EUR 3,008,719 was provided to the abovementioned projects.
Episodes of TV series “Heirs of the Night” (Holland, Germany, Norway) were filmed in Latvia in part or in full in 2018 and 2019, where 85% of seasons 1 and 2 were filmed in Latvia. We can also highlight the feature film “Ravens Hollow” (United Kingdom), which was filmed 100% in Latvia (for the most part at Cinevilla) in 2021.
Also among the important film projects that have been developed in Latvia with the support of the co-financing programme are Sergei Loznitsa’s drama “A Gentle Creature” by the Latvian production company “Film Angels Studio”. The film premiered in the Cannes Film Festival competition programme in 2017. In 2019, the film “Dogs Don’t Wear Pants” by Finnish director J.-P. Valkeapää filmed in Latvia with the support of the co-financing programme and film studio “Tasse Film” saw an international premiere during the Cannes Film Festival.
Thanks to the support of the co-financing programme, large series of feature films were also filmed in Latvia – for example, the series “Heirs of the Night” produced by the Dutch production company “Lemming Films”. In 2021, the co-financing programme support was essential in filming the large historical series “Sisi” in Latvia in cooperation with the Latvian film studio “Cinevilla Films”, which is a project of the experienced German film studio “Story House Productions”. In 2022, part of the second season of the TV series “Sisi” continued in Latvia. In 2020, the film “Wesele II” directed by Wojciech Smarzowski and co-produced by the Latvian film studio “Tasse Film” and the Polish film studio “Studio Metrage” was filmed in Latvia with the support of the co-financing programme.