How a treaty co-production is put together
Two producers, say one in London and one in Toronto, agree to make a film together. They sign a co-production agreement that sets ownership, the budget split, who hires which heads of department, where shooting and post happen, and how revenue is divided. Each producer applies to its own competent authority (the BFI in the UK, Telefilm Canada in Canada) for approval. If both approve, the film is a national film in both countries, and each co-producer can claim its own country's incentives on the spend it controls.
The treaty text sets the rules: minimum shares, how many creative roles must come from each country, and whether a third-country partner can join. Screen Australia describes the basic requirement as each co-producer bringing a minimum percentage of both the financial and creative contribution, with the two in reasonable proportion.
A budget split example
A UK and Canada feature budgeted at the equivalent of C$6,000,000 is split 60/40.
| Item | UK co-producer | Canadian co-producer |
|---|---|---|
| Share of budget | 60% | 40% |
| Financing brought | UK credit, UK equity, a UK pre-sale | Canadian credits and fund money, Canadian distributor |
| Creative | Director, lead actor, DP | Writer, second lead, composer |
| Where spent | Principal photography in the UK | Post-production and VFX in Canada |
| Copyright | 60% | 40% |
Each side's incentive is calculated on its own qualifying spend. The UK producer claims AVEC on UK core expenditure. The Canadian producer claims Canadian federal and provincial credits on Canadian spend. Neither can claim on the other's spend.
Where co-productions get complicated
The creative and financial splits have to line up. A partner that brings 40% of the money but only one minor crew position will struggle to get approval. Currency is another issue: the split is agreed in one currency and spent in two, so a move in exchange rates can push a partner below its minimum share. Build that margin into the agreement.
Paperwork is also heavier than on a single-country film. Both authorities want the co-production agreement, chain of title, the split budget, and cast and crew lists, and both issue their own final certification. Delays at one end hold up the other country's credit.
Related reading
For films that can't pass a cultural test, a treaty is often the way in. Country pages for the United Kingdom, Canada, and Australia cover the incentives each partner brings, and why shoot overseas covers the wider trade-offs. Co-production money is part of the soft money in a finance plan.